Forget Federal Unfunded Liability
The good news is we do not have to worry about Social Security or Medicare running out of money. Why? Well, that is the bad news.
The bad news is the the unfunded liabilities of the States will cause significant damage to the US economy long before Social Security or Medicare has a chance to cause us harm. Most of this is due to public unionism, or as Armand Thieblot calls it “political rent seeking.”
If left unchecked, public unionism will bankrupt most of states long before the federal programs have a chance to. Here are some highlights from Mr. Thieblot’s Capitol Hill Briefing (video embedded below.)
- Public employees earn salaries that average 28 percent higher that private employees
- Public employees have benefits that average 70 percent higher that private employees
- Over 3,000 retired teachers in Orange County California are collecting benefits of over $100,000 a year
- In Ohio, over 3,000 workers are earning retirement benefits and earning a salary equal to their benefits often in the same job from which they retired. They make over $200,000 a year and so not have to work overtime.
- Government pension systems at al levels are underfunded by $3.2 trillion already
- Illinois is issuing bonds to the tune of $3.2 billion to meet this year’s mandatory contribution to public union retirement benefits
We need representatives that will insist that this not happen in Texas. I intend to be such a representative!