Their hunger can’t be satisfied.
In a country where government spending now makes up 40 percent of our GDP annually and where our national debt is 106 percent of our GDP, public employees are helping out their fellow citizens during tough economic times by demanding a larger slice of the shrinking national pie.
In California, the state public pension plan is stiffing private investors- even ones they just recently borrowed from to make up for poor investment performance- in order to make sure that government employees are golden.
In another case in California, the Poway Unified School District is borrowing $105 million to build schools, with promise to pay back close to a billion dollars at the end of the 40-year loan period.
“Last August, district officials obtained $105 million for school construction with the promise to repay investors $981 million under long-term financing known as capital appreciation bonds, or CABs,” writes the U-T San Diego News. “The deal prevents the district from paying anything on the bond for 20 years as interest compounds, and requires repayment in the 20 years after, reaching the maximum 40-year term permitted for bond repayment under state law.”
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More schools mean more union construction jobs and more union teachers.
How can we let a billion dollars stand in the way of that kind of progress?
In Jefferson County, Colorado the public school system- after continuing the spending party during the recession by dipping into reserve funds and taking federal stimulus dollars- is putting off making the tough budget-cut decisions by again asking voters to hike taxes. The primary beneficiaries of a successful tax hike in this case will be union employees.
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