Friday, September 16, 2016
Who will pay for underfunded municipal employee pensions?
Look in the mirror sucker
It’s the perplexing reality that municipal, state, federal, and corporate pensions in the US and similar schemes around the world are so badly underfunded that it will be impossible to fulfill the promises by a wide margin. By many trillions of dollars.
With state and municipal pension funds in the US, the situation is particularly tricky because the beneficiaries are voters and employees of the government, and politicians of all stripes bought their votes with promises of low contributions and rising benefits. They got away with it for decades because no one cares about “underfunded pensions.” Even the term makes people’s eyes glaze over.
But someone is going to pay. And it’s not going to be the politicians.
Who will pay? The taxpayers who are unfortunate enough to have property inside the bailiwick of these bankrupt governments. The article goes on to discuss the tax increases and fee increases that Rahm Emanuel is foisting on the public (a 33% increase in water and sewage rates).
This will be the classic how to boil a frog trick. If you throw a frog into a pot of boiling water he will jump out. If you place the frog into a pot of cool water and slowly increase the heat he will stay put and get boiled. Same thing with taxpayers it will be a slow and constant increase in fees and taxes over time.
My advice is follow Jimmy John's example and get out of Dodge while you can.