Diary

The Dems' Next ObamaCare and Bailout Moment

The Democrats are going to be tarred and feathered with this issue of over-paying their friends, which is so clearly described by Mortimer Zuckerman below. The Dems cannot escape it, and it will act like the political equivalent of a massive parasite sucking political power, voter consensus and support from the Dems — just like bailouts and ObamaCare did:

“According to a study by Daniel DiSalvo, a political scientist at City College in New York, state and local workers now earn an average of $14 more per hour in wages and benefits than their private sector counterparts. In general, the average state government worker reaps retirement benefits several times richer than a counterpart in the private sector, a critical reason why public pension costs have become unsustainable. For example, state and local governments contributed $3.04 per hour toward each employee’s retirement in 2007, according to U.S. Labor Department figures, while private employers paid 92 cents an hour.

Public and private sector workers live in separate economies. The public sector unions are flourishing. The private sector has had to let go many of its workers as economic conditions have worsened. They suffer through frequent turnovers, relentless downsizing, stagnant wages, and rising health insurance premiums. They often fund their own retirements through 401(k)’s and similar plans, which rise and fall with the tides of the economy. By contrast, the public sector is a haven of security and stability, where people have jobs for life and performance measurements are rare. Most public sector workers enjoy job security and boast defined benefit retirement programs. The number of government jobs rose even as overall unemployment in this recession jumped past 10 percent.”

And as Zuckerman points out, when you combine this issue with the spending mandates forced on the States by ObamaCare you have a toxic political cocktail that will see the Dems shrink in numbers of elected official — again. More debt, more spending on something half the country really, really dislikes.

The simple truth of the matter is that the Dems are not to be trusted with a) the public treasury, or b) the ability to raise taxes or c) issue publicly held debt (bonds.) This issue of over-paying, over-pensioning and over-benefiting the public employees will not go away and will continue to hurt the Dems.

Furthermore, it is clear that the Dems have no idea what to do about it, nor do they even understand the political power of this issue. The choice they face is to renege on promises made to their political pals and allies or face the music by the voters.

It is clear, given the make up of the Dem party elite that they will dismiss this issue as nothing to worry about, just like they did with the bailouts and ObamaCare, because to do otherwise would be to deny what they believe in — taxing others to give money to their friends and supporters.

Only now, the voting public is beginning to get the fact that the Dems are spending the country into unsustainable debt to help their friends, and just like Illinois, want to tax Americans more to continue to do it.

Oh boy, this is going to great — another Jonestown Kool-Aid brigade moment is coming for the Dems.

Make no mistake, just like ObamaCare, they will make a great showing of chest-beating and drinking it.