This is how it works: Police, fire and other unions endorse the candidates that will give them raises at the next contract time. Over the years, public-employee union members saw constant sweeteners to their contracts. Such sweeteners cost the politician nothing. It was a deal in which the Government unions and the politicians agreed taxpayers would pay all costs. The people inside of government agreed the people outside of government would would pay. There is a rule against this, it is called thou shalt not steal.
That rule you can violate, because religion is voluntary. There is no way you can violate the rules of economics. That which cannot go on will eventually stop. The costs of police and fire in San Bernardino have resulted in that city joining the growing list of cities filing for bankruptcy protection.
In bankruptcy a judge overrides all of the earlier agreements, based on the arguments of creditors. The Government pensioners are not going to get zero, they will be awarded, on paper, something, some percentage. Say 60%. In this way San Bernardino can limp along. Until such time as they cannot afford that. Since no Government entity at any level is addressing the economic concerns facing us, there is no way our economy can improve. In fact, they are making it worse, for in total breakdown the State becomes more powerful.
But we see here the results of what I've been talking about since 1982: unfunded pension liability. Political action in Wisconsin wherein the powers that be begin to make Government workers pay some of their costs (since Government workers pay no taxes, it is really just a pay cut.) So pay is reduced, and there is no logical limit to that.
Another is that cities go bankrupt, and obligations are reduced. There is no rational limit to this.
Another is the powers that be inflate the currency, lessening the buying power of what checks show up.
Between the two, there is a viable balance, for a time, struck.
Pensioners adjust to tightening circumstances, downsizing homes and selling off summer cabins, travel less, replace things less often and buy Alpo at Costco. It is a downward spiral.
Without a cut in the size of the state, a cut in taxes, a vast deregulation or a narrow deep unregulation (banking, medicine, education...) there will be no growth for anyone.
Start a business and begin the process of reviving the economy.
Feel free to forward this by email to three of your friends.
That rule you can violate, because religion is voluntary. There is no way you can violate the rules of economics. That which cannot go on will eventually stop. The costs of police and fire in San Bernardino have resulted in that city joining the growing list of cities filing for bankruptcy protection.
In bankruptcy a judge overrides all of the earlier agreements, based on the arguments of creditors. The Government pensioners are not going to get zero, they will be awarded, on paper, something, some percentage. Say 60%. In this way San Bernardino can limp along. Until such time as they cannot afford that. Since no Government entity at any level is addressing the economic concerns facing us, there is no way our economy can improve. In fact, they are making it worse, for in total breakdown the State becomes more powerful.
But we see here the results of what I've been talking about since 1982: unfunded pension liability. Political action in Wisconsin wherein the powers that be begin to make Government workers pay some of their costs (since Government workers pay no taxes, it is really just a pay cut.) So pay is reduced, and there is no logical limit to that.
Another is that cities go bankrupt, and obligations are reduced. There is no rational limit to this.
Another is the powers that be inflate the currency, lessening the buying power of what checks show up.
Between the two, there is a viable balance, for a time, struck.
Pensioners adjust to tightening circumstances, downsizing homes and selling off summer cabins, travel less, replace things less often and buy Alpo at Costco. It is a downward spiral.
Without a cut in the size of the state, a cut in taxes, a vast deregulation or a narrow deep unregulation (banking, medicine, education...) there will be no growth for anyone.
Start a business and begin the process of reviving the economy.
Feel free to forward this by email to three of your friends.
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