Wednesday, November 6, 2013

Cincinnati Pensions: Obscure yet important ballot proposal blogging

So voters resoundingly rejected an idiotic Tea-Party backed proposal that would gut city worker pensions in Cincinnati, Ohio


Pensions do present long-term fiscal challenges to companies and governments. But one thing that drives me crazy is that we seem consider pensions, which are debts owed to existing and former workers, as expendable, while we consider debts we owe to banks and bondholders somehow non-negotiable.

If I were a cynical observer of public policy, I might suggest that this double standard in popular perception and bankruptcy law is because bankers are rich and well connected while city and school district employees tend to be of more modest means.
But that would mean that I wasn't a Very Serious Person.

Incidentally, it also drives me nuts when we take pension problems that were created by companies or governments not making their contributions and blame them on workers -- who usually contribute large portions of their salary to the pension fund.

I suppose I could link to recent such happenings in Detroit and Illinois, but I'm feeling lazy today.

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