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the biggest abuse of the system is public employee pension systems which are a super big time bomb. My favorite example is Illinois[0] but they are not the stat
by Shivetya 7y ago
the biggest abuse of the system is public employee pension systems which are a super big time bomb. My favorite example is Illinois[0] but they are not the state in the worst condition.
Politicians bend over to the public employee unions to keep their political support and in turn make very generous pension and health retirement plans that truly are not affordable. Worse, many at the top of the food chain pull down pensions well North of 100k and some hit 250k +. Imagine that, receiving a pension higher than the average salary of a working member of society. However this is what politicians and government employees have engineered behind the scenes. There are two bets being placed here, first being courts will force the states and cities to tax their way back to compliance, the second is a Federal bail out at full $
[0]https://www.forbes.com/sites/adamandrzejewski/2018/10/26/illinois-100000-club-94000-six-figure-public-employees-and-retirees-cost-taxpayers-12b/#66fcf943481a https://www.forbes.com/sites/adamandrzejewski/2018/10/26/ill...
- evgen 7y agoThat is a particularly deceptive way to describe the situation, but at least you are not hiding your bias. The reality is that the public demands more and more from public service employees but then throws a complete hissy-fit when it comes time to raise taxes to keep government salaries even vaguely competitive with private salaries so that they can fill those jobs with more than the bottom of the barrel. The way the government hides the ongoing pay increases is by offering those employees more generous pensions. Now this cycle of holding down above the line payroll costs by padding pensions is starting to break down and so people are starting to notice.