City Bankruptcy Rulings Challenge Constitutional Democracy
Cities in the U.S. are going bankrupt. The most important fact to realize about this is that it is not the people who caused the bankruptcy, or the big corporations. It is not the private sector of the cities that is causing the bankruptcy but the public sector, specifically public union spending.
These cities spent so much money on public salaries and pensions that they couldn’t tax the people enough, so they began to borrow money. Then they began to borrow money again to make the payments on the money they had first borrowed. In the private sector this kind Ponzi scheme is a crime. But since government does it, and they won’t jail each other, they get away with it.
No public sector union has yet shut down. They always find ways to engineer their finances so the public is stuck with the bill. They get all the benefits and force the taxpayers to take all the risks. And in all cases so far the cities doing this, the public unions, are all run by Democrats, that lovely group of public servants who devote their lives to income equality, justice, and fairness.
Public pensions are out of control. Today Los Angeles, CA has four retired Fire Department. officials who earn over $800,000 a year in their pension. All of these had less than 30 years of service. And there’s dozens more who earn from $300,000 and more.
By 2020, Illinois will have 25,000 retired government pensioners who earn $100,000 or more in a pension.