Neither a Borrower Nor a Lender Be, by Robert Gore
During the last financial crisis and recession, many municipal and corporate bonds were subject to precipitous drops. Even as the crisis unfolded, most investors found it inconceivable that stalwart industrial and financial companies would go bankrupt or require government rescues, but they did. This time the window for selling corporate and municipal bonds is still open, but once the herd realizes that financial turmoil and economic contraction will impair the ability to pay across broad swaths of the bond market, it will snap shut.
This is an excerpt. For the rest of the article please click the link above.
This is an excerpt. For the rest of the article please click the link above.
It never occurs to the politicos that you can only control one factor in the process...the contribution. You can have a working process with defined contribution. you cannot have a working process with defined benefit. Or at least not without the benefits being equal to or less than the contributions.
I laugh that people think the people working in civil service are fatcat rich, when I could be making easily 10x the money if I did this in private industry. True, there are moochers who milk the system, but for me, it's an opportunity to do something I found I really love, it keeps a nice roof over my head, allows me to have some really fun hobbies, and develop myself so when I do pull the plug, I'll be able to start my own business (and have enough years left to exploit that business to its fullest potential).
But they continue to "budget by emergency" because it gives them an excuse to propose tax increases every year. I am not willing to believe this is an accident. And one of the most reliable sources of these "emergencies" is that every budget underfunds CalPERS, CalSTRS, and the other pension funds, while simultaneously making (literally) unbelievably optimistic assumptions about how those funds will grow in the years ahead.
The can will continue to be kicked down the road until California's taxpayers become unwilling or unable to meet each year's pension "obligations" as the payments come due. At which point, I hope, even this Leftist behemoth of a state will finally shrug.
The whole impetus of the majority budget was so the politicians in Sacramento would quit playing politics with the budget. It was frustrating back then to see a workable budget get thwarted because some group of assemblyperson's pet porkpie didn't get enough funding. This way, for better or worse, it gets the job done.
How is it "giving your life" any more than working for any other business or organization? Working for government means working for the most inefficient organization, in most cases producing more harm than good.
Your outline of your plans demonstrates, I think, that you are far from "giving your life" to them. From my prospective, you are being overpaid by a mismanaged outfit that has found a way to abuse the taxpayers.
Why is it not that an entrepreneur who starts a business and employs, say, 50 people, is providing a "public service" (to his customers and his employees and their families) just as much or better than a government employee?
Sounds like those "overpaid" people don't do a damned thing. Not a one are worth a crap, or deserve even a sub-minimum wage job.
Then... I realize... -gasp-... you want to make this rather personal... eg:
"From my prospective, you are being overpaid by a mismanaged outfit that has found a way to abuse the taxpayers."
as a supposed "overpaid public servant"... I have 2 questions that I will require an answer from you.
(1) What do I do for a living, specifically, and what are the qualifications for someone that does my job, either for the dotgov or in private industry?
(2) What do I get paid for the above, VS what does someone on the outside get paid for this job?
Here's your glove back. Good luck.
My comments were not intended personally.
I do not know the answers to your questions and really do not care.
I believe that fire fighting (it's done by volunteers), much policing (there are private security and guard organizations), road repair and maintenance (frequently done by contractors) could be done more effectively, efficiently and at less cost, if the competing businesses were allowed to bid. I have my own well and septic system, so I am out of reach there.
My objections are primarily to two concepts that I find untrue. First, that working for government is "giving life for public service". It is misleading and aims at the emotional side of human nature. Once one starts to think, one sees through it.
The second is the claim that government employees are underpaid. There is abundant information about substantially higher compensation of government employees over those in private sector, in equivalent jobs. Of course, all those pensions (unfunded!) are significant factor in that. In addition, unions pay for politicians' election campaigns and then collect in the negotiations with the same politicians who will
want another bribe when the next election cycle comes around.
Examples: Detroit, Chicago, Illinois, New York City and State etc. etc.
I have nothing personal against you. How could I? I do not know you.
Finally:
1. You did not answer my first question.
2. I di not say that government employee do not "do a damned thing".
I detect that you feel offended. I say: A is A.
-1: "sweet revenge" ;-)
EDIT: correct a typo
If all I had to live on was said government pension I would be very worried, but I don't. Even so, I consider it just one of my investments, and as such keep a hawk's eye on it.
My grandfather (a commercial hunter and butcher) bought an annuity that, when he retired, would pay him the whopping sum of $200 a month. Back then, it was enough to live like a prince... by the time he was 75, it wouldn't pay his property taxes.
Looking at it from the inside out, rather than from the outside in, and seeing the cuts we're being subjected to (this by a well funded and managed system) and looking at getting maybe 50% of our final salary as a thank-you for 30+ years of busting butt and getting wages significantly lower than our privately employed cousins, I could call it many things - but "way too generous" isn't one of them. Sorry.
I made another stupid mistake. I meant to ask: didn't the LENDER bring that on itself? Becoming the slave. It occurs to me that in a free market, with vigorous competition, no lander and no borrower should ever become a "slave" of the other.
EDIT: correct typo
I would certainly not attempt something like that in the present conditions. The chief then was Reagan and now is O (add any four letter word). Beyond comparison.