War on Prosperity
Posted by aogMonday, 26 July 2010 at 13:52 TrackBack Ping URL

Democrats have been running Congress for nearly four years, and President Obama has been at the White House for 18 months, so it’s not too soon to ask: How’s that working out? One devastating scorecard came out Friday from the White House, in the form of its own semi-annual budget review.

The message: Tax revenues are smaller, spending is greater, and the deficits are thus larger than the White House has been saying.

Wall Street Journal

“Unexpectedly”, I’m sure. And I am sure the lack of growth from the currently planned tax increases next year will also be “unexpected”.

Comments — Formatting by Textile
Barry Meislin Tuesday, 27 July 2010 at 03:51

The bankrupting of America continues apace.

AVeryRoughRoadAhead Tuesday, 10 August 2010 at 20:16

Unfunded Liabilities of State and Local Government Employee Retirement Benefit Plans PDF

Executive Summary

Many state and local governments offer employees defined benefit pension plans, which promise a set lifetime retirement income based on wages and longevity. In contrast, income from defined contribution retirement plans — such as 401(k)s — depends on past contributions, the rate of return on those contributions and future returns. […] In addition, taxpayers act as de facto insurers for government pension plans. […]

In addition to pension benefits, state and local governments often also provide other retirement benefits, especially postretirement health care benefits. These nonpension postemployment benefits include such things as health insurance, dental and vision insurance, and prescription drug plans. […]

We analyzed 153 state and local pension plans. […] Our calculations show: ■ Unfunded pension liabilities are approximately $2.5 trillion. […] ■ Unfunded liabilities for health and other benefits are $558 billion. […] ■ Thus, total unfunded liabilities for all benefit plans are an estimated $3.1 trillion. […]

To put these liabilities in context, […] states’ unfunded obligations were 22 percent of U.S. GDP.

Given that these state & local pension and retirement benefit shortfalls will be biting taxpayers at the same time as are the SS & Medicare shortfalls, there’s not a snowball’s chance in Hades that these pensions will pay out as promised.

Once again, Boomers are scroomed - and the knock-on effects will be strongly negative for GenX, as well.

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