Sunday, August 08, 2010

Place The Blame On Whom It Belongs

I've never understood why private sector unions consider themselves to be allies with public sector unions, given that public sector unions are doing all in their power to destroy the private sector.

But there's also reason to wonder why public sector union workers have any respect for public sector union bosses:
  • Unfunded pension liabilities are approximately $2.5 trillion, compared to the reported amount of $493 billion. 
  • Unfunded liabilities for health and other benefits are $558 billion, compared to the reported $537 billion. 
  • Thus, total unfunded liabilities for all benefit plans are an estimated $3.1 trillion — nearly three times higher than the plans report.

If you need this translated, it's very simple:

You're not going to get the money you think you were promised.

If you're a government employee and are counting on some sort of pension plan, get over it.

The money does not exist.

It cannot be acquired.

If you scream about "But the state constitution says we're protected!" I will simply remind you that it is easier to change a State Constitution than it is make money that doesn't exist magically appear.

To put this into context, the shortfall is double the annual Federal Budget deficit - at today's bloated amounts. It is five times the average federal budget deficit during Bush's administration.

Again: You're not going to get the money, and most of it isn't, as is commonly believed, in the form of medical benefits - it's in direct cash pension compensation.

You were lied to by the plan administrators.

They (intentionally) used ridiculously-rosy projections of "gains" in their portfolios.

Their "projections" are outrageously unsound, as is their accounting.

Your public-sector unions lied to you too. They led you to believe that you could have the equivalent of a free lunch and that these plans could be funded and would pay. You can't and they can't.

Now you can get angry at "the people" all you want. The fact of the matter is that the people who BS'd you aren't the public - they're your so-called "union representatives" and the so-called "pension managers", all of whom you hired and who report to you, not to the taxpayer.


Anonymous said...

It's very simple. The private union s view the public unions as fellow union members and believe in their heart of hearts that another union wouldn't screw them. Would they? I'm only thankful my father in law recently departed us before this hit the fan. It would have broken his heart.

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