“…COMPARED TO STATE ECONOMIES: The total pension shortfall ‘is less than 0.2 percent of projected gross
state product over the next 30 years’ – Center for Economic and Policy Research.
“COMPARED TO
STATE BUDGETS: Pension costs ‘account for only 3.8 percent of state and local
spending’ – Boston College.
“COMPARED TO CORPORATE WELFARE: The $1.38 trillion state pension gap is
roughly $46 billion a year over 30 years. That is far less than the $120
billion a year in public revenues that states and localities lose to offshore
tax loopholes and corporate subsidies – The New York Times & U.S. PIRG study…
“PENSIONS:
JOB-CREATING ECONOMIC STIMULUS: Taxpayer subsidies to corporations are
typically portrayed as job creating necessities, while public pensions are
usually depicted as job-killing drains on state economies. But it is exactly
the opposite – often times, corporate welfare does not produce promised economic benefits, while expenditures on defined-benefit pension plans typically create jobs and boost economies. Here’s what the
National Institute on Retirement Security reported in 2012:
“BENEFITS AS STIMULUS: ‘For each dollar
paid out in pension benefits, $2.37 in total economic output was supported.’
“CONTRIBUTIONS AS STIMULUS: ‘For every taxpayer dollar contributed to state and local pensions,
$8.72 in total output was supported nationally.’
“PENSIONS AS JOB CREATORS: ‘Pension expenditures support 6.5 million jobs... represent(ing) a
full 4.2 percentage points of the national labor force…’
“Thanks, in part, to the success of the Pew-Arnold partnership in
distorting the
conversation about public pensions, the budget debate in all these states is
focused almost exclusively on slashing retiree benefits rather than on raising
revenues and ending corporate subsidies – even though those subsidies are
typically far larger than the pension shortfall. And with John Arnold as a role
model, other billionaires are beginning to invest in the same dishonest
message…
“
With all that money behind it, the movement to convert
traditional public pensions into riskier and costlier schemes will almost
certainly reach into every legislature in America. As an Arnold Foundation
executive said in discussing his work pushing pension cuts in California, ‘We
want to see if we can build momentum for a sustained reform effort in the
state, and nationally.’”
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