Wednesday, October 13, 2010

General Motors and the State of California

A quote from a few years ago: "If you're not familiar with General Motors, it's a health care benefits management firm that sells cars for a loss as a side venture."

Updated version: "If you're not familiar with the state of California, it's a public employee pension management organization that runs a state on the side with a large $19 billion deficit."

California governor Arnold Schwarzenegger explains it this way in today's WSJ:

"The problem is stark: Over the last decade in California, spending on state employees' compensation rose nearly three times faster than state revenues. This has squeezed resources for programs, such as higher education and job training, that benefit private-sector workers. This year, for the first time ever, our state was forced to spend more on retirement costs ($6.5 billion) than on higher education."

8 Comments:

At 10/13/2010 2:28 PM, Blogger Colin said...

You should also check out New York:

http://www.nytimes.com/2010/10/13/business/13retire.html?ref=todayspaper&pagewanted=print

 
At 10/13/2010 2:32 PM, Blogger Douglas Johnson said...

I tried to buy some land in Colorado recently but was outbid by a California teacher. I was told she quit her teaching job after 20-years, got a huge bonus for 20 years of no sick days, started a lavish pension, and then was hired back the very next day allowing her to collect both her pension and salary at the same time. I may make $250k per year, but I'll never be able to compete with that.

 
At 10/13/2010 3:01 PM, Blogger Benjamin said...

Public employees in America, especially military, and public safety employees, evidently get to retire after 20 to 25 years fo service, with full pension and medical benefits.
According to the US Navy, a typical Navy retirement package is worth nearly $1 million, even before the free VA coverage for life. Officers get far more.
Some California police chiefs are complaining they have three officers on payroll--one disabled, one retired and one in the field (unless the active oficer is on one of his eight weeks of vacation).

We simply have to go to defined benefits for all public employees, and retirement has to start at age 67, for pensions.

Health care has be covered through Medicare, and the VA has to be abolished.

 
At 10/13/2010 3:06 PM, Blogger PeakTrader said...

I recall Obama giving a speech to a large crowd of students. When he said everyone will be getting free health care until they're 26!, the crowd exploded in a tremendous cheer that a rock star would envy.

Of course, what he failed to explain was their tuition costs will skyrocket, the new health care law includes hiring 16,000 new IRS agents to make sure they pay their taxes, which will go way up, along with fees and fares, inflation will accelerate, interest rates will rise, you'll be working hard for foreigners and be slaves to the elderly, if you're lucky enough to get a job within the next few years (and it certainly won't be in health insurance).

 
At 10/14/2010 5:24 AM, Blogger Jason said...

California is ground zero for "citizens work for the government mentality."

Morgonovich and others, flee the hotel California. Then we'll give it back to Mexico.

Oh, wait, we already did...

 
At 10/14/2010 6:01 AM, Blogger juandos said...

Typical pseudo benny comment, silly and substanceless...

Adam Summers of the Reason Foundation has some ugly numbers regarding California's fiscal affairs...

The numbers of state employees in California is 9.3 state employees for
every 1,000 people
...

 
At 10/14/2010 7:56 AM, Blogger Paul said...

Benji,


"We simply have to go to defined benefits for all public employees..."

Are you preparing to pull the lever for Jerry Brown and Barbara Boxer?

 
At 10/14/2010 8:06 AM, Blogger Paul said...

This comment has been removed by the author.

 

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