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by throwaway1979 3644 days ago
It isn't just sale of public institutions. In many cases, it is attempts to maintain the status quo when circumstances have clearly changed. Public sector pensions are a perfect example of this. I think most software engineers don't realize how good public servants have it. In a time of very little safe asset growth, defined benefit pension plans are simply unsustainable without massive increases in contributions. Yet everywhere it seems that contributions are not going up and the people are employing various tricks to keep things going. In a fair market, the new reality would be accepted and pension plans would change. But here we are.

Btw ... in the book Fate of the State, the author suggests states to privatize their assets to meet their funding shortfalls. So the neoliberals will truly profit while things get worse. Sad.
3 comments
gerbilly 3643 days ago
>I think most software engineers don't realize how good public servants have it.

Maybe we should work towards all having it as good as the public servants do.

I'm not trying to foment, but I see this meme all the time: if some other sector of society has it better, then they must be brought down to our level because 'austerity' or something.

Meanwhile I don't see CEO pay being lowered due to austerity or banks making any less profit...

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throwaway1979 3643 days ago
You are correct in principal ... we should all have it better. However, now that I'm a bit older, I ask questions about productivity and such. If we are earning more than we are actually producing, someone is paying the bills. It is either someone else (which is not fair), or coming from the pockets of our children (incredibly not fair). I think the previous generation screwed us badly. It is our responsibility to not pass it on. But you are definitely right about issues like CEO pay being unfair and beyond any true productivity.
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mtanski 3644 days ago
It'll be interasting what's going to happen with state pensions when the burden is just too high. In the next 15 years one of these IL, NJ or HI will be at a breaking point. My bet is on IL since the approx date of falling off the cliff is 2028.
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throwaway1979 3643 days ago
According to the book (the author did do some financial analysis but I forget the details), if these states sell a small fraction of their assets, they will be able to pay off all their debt. I'm definitely not agreeing with the author's point of view, but that is something I had not thought about before. i.e. while your debt may be a lot higher than your income, if you have sizable assets, you an get away with it for a while.
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internaut 3643 days ago
I see that too. What seems to be happening is that old public sector union employees are given comparable wages to what they got before the crunch.

Then the younger generation of police officers and nurses are receiving almost nothing. They are literally on min wage. I don't know about you, but I wouldn't be a police for nine euros an hour.

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