Saturday, January 3, 2009

I Told You So!

Socialism here we come. On numerous occasions and most recently on October 3rd, 2008 and on November 1st, 2008 I predicted the bailout of State governments. Governments need to learn how to cut spending because that is what we the taxpayers will need to do when they start taxing us to pay for all of these bailouts.

As far as I am concerned we could get all forms of governments out of debt by the governments taking the money from their employees (aka taxpayer funded workers) and their retired employees pensions. Here is a list of my suggestions.

1. From here on out all government employees must retire no earlier than 67 and government employees can no longer double, triple or even quadruple dip into government pensions.

2. No government employee salary can exceed 75,000 dollars (this would be adjusted for inflation over time) with the exception of the President and Vice-president.

3. Governments employees can no longer receive taxpayer funded medical plans once retired they must use Medicare like those in the private sector.

4. Either all pensions funds must be turned over to social security and all governments workers must receive social security like the rest of us schmucks or all pensions must now longer exceed 40,000 dollars annually (that is a heck of a lot more money than they would receive if they received social security). Some Government Pensioners are receiving pensions well over 200,000 dollars a year. These pensions start at age 55 so these retired government employees are getting millions of dollars in retirement.

5. All currently retired employees under age 67 can no longer receive pensions.

6. Government employees must no longer be allowed to be unionized.

7. We must enforce term limits not to exceed 8 years in all levels of the government. Without term limits we often have nepotism, patronage, corruption and wasteful spending.

Corrected for typos and clarity 1/4/09.

Cathy


The following piece appeared on Reuters.com.




U.S. governors seek $1 trillion federal assistance
Fri Jan 2, 2009 5:48pm EST
By Jon Hurdle

PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin -- all Democrats -- said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.

Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge.

"It's clear that the federal government needs to step in and jump-start the economy," said Gov. Deval Patrick of Massachusetts.

The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in "counter-cyclical" spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states.

The remainder would be used to fund middle-class tax cuts, stimulate the embattled housing market, and stem the tide of home foreclosures through a loan-modification program.

Gov. Jon Corzine of New Jersey said he hoped some of the $700 billion authorized by Congress in the Troubled Asset Relief Program would be available to help the housing market.

The governors said during a conference call with reporters that the plan had been discussed with Congressional leaders and the incoming administration, which had indicated its willingness to help.

"The Obama team has been very receptive in listening to us," said Gov. Jim Doyle of Wisconsin. He said "quite a number" of other governors back the initiative.

The Republican Governors Association, however, said the level of federal aid being sought would create a burden for the future.

"The proposal by the Democratic governors goes beyond things like 'shovel-ready' infrastructure projects and is essentially a bailout of these states' general funds," Nick Ayers, executive director of the Republican Governors Association, said in a statement. "Now is the time to focus on finding cost-effective ways to provide essential services without burdening future generations with ever greater debt."

Doyle of Wisconsin said the plan would allow states to maintain essential services at about the current level until 2010, when the national economy is expected to begin a recovery.

The proposal comes amid expectations that the Obama administration, which takes office on January 20, will provide hundreds of billions of dollars in economic stimulus to boost the shrinking U.S. economy and halt the loss of jobs.

Paterson of New York said his state's budget deficit has surged to $15.4 billion currently from $5 billion in April 2008, despite a 3.2 percent cut in the education budget.

Corzine said the money called for represents about 3 percent to 3.5 percent of the economy, equivalent to the amount that the economy is expected to contract by over the next two quarters.

In light of the $700 billion provided to bail out the financial industry, "It's not shockingly large," he said.

(Editing by Leslie Adler)



1 comment:

ReasonableCitizen said...

I think you are looking at the wrong end of the horse.
The salaries paid to politicians or to government employees is not relevant. If the money is too low, they will seek graft or some circuitous process to make more money or they will just go where they can earn more.
The problem is the magnitude of people who work for government or are dependent upon it. Today 10% of all workers are federal employees. Then you can add all state and local municipal employees for another 5% or so. Then you can add in the 1 million prison population. Don't forget to count all workers in the defense related companies who exist on DOD contracts. I think we might be at 25% of the labor force that is dependent upon government salaries, contracts, or other largesse.
The federal government drives the economy now and has for a couple of decades. The difference is that the federal government is now the source of capital for banks.
We have achieved American Socialism.
When Japan began to kick our behinds in the late 70's because the Japanese government was controlling their economy, that was when our government threw in the towel and went all socialistic.
We must now live with federal government ruling families, federal economic market incentives, and federal spending incentives.
Who can stop this juggernaut now?