The Age of fiscal responsibility has passed. We are in a new age of financial chaos, in which our politicians shuffle tax money around to purchase votes from their favored constituencies without even the pretense of restraint.
State employee pensions are famously generous; defined benefit pension plans are financially crushing for the states, because the performance of their pension plan investments is not linked to the payout, which is defined in advance. So a down market can have significant consequences that must be made up by the taxpayers.
It’s quite a scam, and it is only going to get worse. It would be delightful if some of these states’ plans go bankrupt because of the burden of their ridiculously generous pension systems, but that is a laughably naive hope. It will never occur. The federal government will bail them out, and the states will raise taxes and cut services to fund those plans. Why? Because they are the lifeblood of the Democrat vote buying apparatus.
Three high-profile Democratic governors are struggling to stabilize their states’ retirement programs due to a falling stock market and may have difficulties paying out benefits in the coming years, according to Politico.
Democratic California Gov. Gavin Newsom, Democratic Illinois Gov. J.B. Pritzker and Democratic New Jersey Gov. Phil Murphy, all of whom are considered potential candidates for the 2024 presidential race, have poured billions of dollars into their states’ pension funds, according to Politico. They may struggle to maintain their public images if they’re forced to raise taxes or make budget cuts to keep pension payments flowing.
I’m not sure how budget cuts would effect New Jersey, since it is so unbelievably corrupt and inefficient and terrible at…everything. Could the roads get worse? Yeah…I guess. But they are awful now…who would notice? Public transit? Wow…I simply have no idea how it could be worse than it is now. DMV? Hah!
But I do like the idea of Phil Murphy — the ferret-faced Goldman Sachs crook — running for president. That way he wouldn’t pay as much attention to NJ for the several months he campaigned before leaving the race having won exactly zero votes. He is an ugly man, both inside and out, and I relish the idea of him being slapped down by the first few Democrat primary voters.
See? There is a silver lining in this cloud!