The looming problem of Public Sector Pensions

Forbes magazine has a very insightful article on the absurd riches enjoyed by public sector workers- the ranks of which will clearly explode under President Obama and a Democratic Congress. The article’s focus in on very generous “gilt-edged” pensions that public sector employees enjoy upon (usually very early) retirement. These pensions are often based on the last days of employment-when the government’s custom is to artificially boost the employee's regular salary so the worker enjoys outsized benefits for life. The article clears up some common misconceptions : In public-sector America things just get better and better. The common presumption is that public servants forgo high wages in exchange for safe jobs and benefits. The reality is they get all three. State and local government workers get paid an average of $25.30 an hour, which is 33% higher than the private sector's $19, according to Bureau of Labor Statistics data. Throw in pensions and other...(Read Full Post)