Stephen Moore :The Federal Government Cannot Bail Out the Blue States



Taxpayers at large should not have to foot the bill for lavish state government employee pensions. Many would argue that the states cueing for bailouts should instead come to grips with economic reality. The bailout states didn’t have enough money to pay these pensions in the first place. They knew the numbers didn’t work. Why should the residents of Florida, Nebraska, or Idaho save overpaid government workers in Chicago, New York City, or Sacramento?And behind it all: Campaign contributions from public unions.

(From Real Clear Markets)

We also know the states with the largest unfunded liabilities in their public pension programs are California, Illinois, New Jersey and so forth. These states handed out massive pension benefits that, in some cases, pay $100,000 or more per year to former government workers, which generally ranges from 30% to 50% — and in some cases, 100% — more than private sector workers (who pay the government workers’ salaries) get.

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