WSJ – Ahnuld: Public Pensions and Our Fiscal Future
Few Californians in the private sector have $1 million in savings, but that’s effectively the retirement account they guarantee to many government employees.
At the same time that government-employee costs have been climbing, the private-sector workers whose taxes pay for them have been hurting. Since 2007, one million private jobs have been lost in California. Median incomes of workers in the state’s private sector have stagnated for more than a decade. To make matters worse, the retirement accounts of those workers in California have declined. The average 401(k) is down nationally nearly 20% since 2007. Meanwhile, the defined benefit retirement plans of government employees—for which private-sector workers are on the hook—have risen in value.
Few Californians in the private sector have $1 million in savings, but that’s effectively the retirement account they guarantee to public employees who opt to retire at age 55 and are entitled to a monthly, inflation-protected check of $3,000 for the rest of their lives.
What a mess. He begins by saying,
Recently some critics have accused me of bullying state employees. Headlines in California papers this month have been screaming “Gov assails state workers” and “Schwarzenegger threatens state workers.”
And I just don’t get how anyone could pay any attention to that crap. Maybe he needs to do like Elin Nordegren and publish this in People, accompanied by some photos of himself looking sadly out some large arched windows, the light really featuring the blue of his eyes…