dhensley813 wrote: The city of Chicago really had no option but to curtail the benefits of retirees. It's not as bankrupt as Detroit, but it was getting there. Obamacare wasn't so much the reason the city cut retiree insurance, as the excuse it gave them to say that they weren't really being dropped. - Obama Solves Mass-Layoff Problem by Laying Off Mass-Layoff Statistics Guys at BLS
Dear Comrade 813,
I think they had no choice once they negotiated a contract that allowed retirees to have benefits that the city knew it couldn’t afford.
That’s outrageous enough. But to make matters worse they are shifting the costs to the rest of us. And don’t forget the retirees who will have to shell out more money for fewer benefits.
This is of course why government employees should not be allowed to unionize. Ever.
If you want to get at the problem of money in politics, I have a one-word answer for you: Unions.
Imagine if unions gave money to GOP candidates, who then went and signed fat benefit contracts on behalf of the people who gave them money. And remember, Chicago’s current mayor is Obama’s made-man, former chief of staff, Rahm Emanuel, who likely is as responsible for the passage of Obamacare as anyone alive.
And if you know anything about how economics works under the Rahm and Obama show, you’ll know that the fact that the combined cost of $277 million to taxpayers and citizens to save Chicago a $109 million next year is a benefit under the system.
As the Wall Journal reported earlier this year, more cities might be looking to do the same and shift costs from big cities to the federal government.
And that’s when the real hopey and changey stuff begins.
That means that there will be more state and city money in budgets available for the dues-paying, non-retired members of the government employee unions.
“All told, state and local governments are on the hook for between $700 billion and $1.5 trillion for retiree health benefits,” writesthe Journal, “and like Chicago most will soon be unable to afford even their minimum annual payments. Offloading the costs on Uncle Sam will look attractive since retiree health benefits don't enjoy the legal protections that some states have bestowed upon pensions. Stockton, California intends to shed its $400 million unfunded liability for retiree benefits in bankruptcy.”
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 28th 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom