One thing that Dkos glosses over is a huge elephant in the room.
All of the social justice we want to promote, money we want to spend on society, is threatened by the government pensions that Federal, State, and Local employees have acquired for themselves. It is laughably easy for one of the existing government workers with a defined-benefit scheme to receive well over $1,000,000 in retirement benefits. Retiring with a defined government benefit pension is like having over $1,000,000 in the bank on the date of your retirement.
The following is from John Mauldin. Whether or not I like his politics, which I don't, he presents facts. This article on pensions provides insight into how badly captured society is by government workers having won for themselves statutory authority to take money from us far in excess of what they put in.
The "Greatest Generation" and "Baby Boomer" government employees are going to bankrupt us with their pensions.
Here are three anecdotes that illustrate this.
Case #1- The government lawyer
My Dad retired at age 55 from the Federal Govt with 30 years service. That was 35 years ago. He was a GS-14 lawyer.
He died at age 75. My 80 year old Mom is still receiving his benefits to the tune of over $40,000 a year, plus health insurance, so let's say that is an even $50K. So far, in today's dollars, they have received 35 x 50K, or $1.75 million dollars. That is right. $1,750,00 in benefits.
Did he generate that much value? Hardly. In fact, for the last 7 years of working he did little to nothing because he was mentally ill and they just kept him in a corner office, reviewing briefs and taking naps. Am I glad I don't have to support my Mom financially? Yes. Do I expect to be living with my kids when I'm old? Highly likely.
Case #2- The Assistant Town Manager
My next-door neighbor has North Carolina Municipal Employee Pension benefits. He is 60, and retired after 30 years. He will receive $47,000 a year, plus health insurance, so let's call that $60,000 a year. If he lives for 20 years, that is $1,200,000. Oh, and he is double-dipping, working again for the city as a contractor. He put in 6% of his pay while working. Wow, how much money would you need in a portfolio now to generate $60K a year for 20 years? Maybe, what, $2 million if you earn 3% a year? So, by working for the state govt and contributing 6% of salary he has the equivalent of $2m in the bank, generating income.
Younger state and local government workers don't get the defined benefit anymore. But the people already in the system have no problem bankrupting the rest of us.
Case #3- The 42-year-old military "retiree"
My buddy retired at age 42 from the Army as a Lieutenant Colonel. He is making about $3500 a month as a retiree. Plus healthcare. So, let's say his $42000, plus healthcare, is worth $50,000. He is likely to live to 80. 38 years- $1,700,000 in benefits. To earn $50K a year in retirement- at 3% return a year, that is like having $1,700,000 in the bank at age 42.
That makes me want to barf. Oh, and he is double-dipping, working as a Federal Govt employee. I should have stayed in the military. I wouldn't be working my ass off with no security.