Public employee unions work hard to ensure ever-increasing payoffs for public employees. But if the public pension system continues as it is today, the very real consequence of pushing for higher retirement payouts is likely this: the money that retired public employees are depending upon may dry up.
The California Policy Center ran this story posing such a hypothetical situation: Public Safety Unions and the Financial Apocalypse
We think it’s worth a read, even while admitting that it seems a little alarmist to us. Here’s a chilling quote from the piece that sparks our interest:
“Millions of retirees and active public safety workers still expect pensions that are roughly equivalent to the amount they made at the peak of their careers. But the money won’t be there.”
In their pursuit of “championing the rights of working people,” do you think these unions are aware that they may potentially be ushering these same folks – and the state as a whole – to financial ruin? It will come as no surprise to you, but THC thinks they sure are. It’s just a shame that the people theses unions claim to represent may end up taking the brunt of the damage when CALPERS, or any public employee pension system, goes belly up. (Fun fact – CALSTRS, the teacher pension system, saw its unfunded liabilities go from $76 billion to $97 billion practically overnight.)
This is especially relevant for Humboldt County; even if there is no financial apocalypse for the world, the nation, or the state, you can bet your ass that there is one coming for Humboldt County. Once the pot bubble bursts – and burst it will – a huge portion of our local economy will collapse.
Our County government is already hurting financially, and is already hard pressed to cope with mounting debt due to unfunded public pensions. What do you think will happen when the cash cow they hung their hats on fails them?
Couple the specter of potential collapse with the fact that public unions are even now pushing to exempt all aspects of public employee contract negotiations from disclosure, and it paints a bleak picture for the future.