The Government Trough

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    The Government Trough

    The fundamental reason why ObamaCare passed and Social Security privatization stalled is the fear that individuals need government programs to protect them from the cruel vagaries of the market. Market critics played up these fears in the wake of the financial meltdown. Former Australian Prime Minister Kevin Rudd blamed “extreme capitalism and unrestrained greed for perverting the global financial system” and called on governments to take aggressive steps to protect victims facing job losses and melting retirement accounts.

    But Wisconsin demonstrates that people who put their economic fate in the government’s hands don’t get safety — they get screwed. They simply trade one set of risks for another, over which they have even less control. Why? Because the government does not play by the same rules that apply to mere mortals in the private sector.

    Wisconsin is just the first act in an unfolding tragedy in which states and municipalities across the country have promised $3.5 trillion — about a quarter of the national GDP — in pensions for which they don’t have the funds. Unfunded health retirement costs are even greater. But how did we get to this point?

    The reason, explained Orin Kramer, chairman of the New Jersey Investment Council, in the New York Times, is that the government can use accounting methods and make assumptions about investment returns that private companies are simply not permitted. This diminishes its reserve requirements, freeing it to make lavish promises now and postpone the budgetary consequences into the future. Public unions go along with this subterfuge — something that private unions wouldn’t do — because they count on the government’s taxation powers to keep refilling the trough.

    Competition and the rule of law check individual greed in the market. These mechanisms are not perfect, but at least they exist. Government, on the other hand, is an unregulated monopoly that sets its own rules and enforces them as and when it sees fit. Wisconsin’s public unions can hardly complain if it changes the rules mid-game. After all, they are the ones who decided to play with it in the first place.

    Public unions find a watering hole has become a drowning pool
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    It is obvious that the first two sentences in the last paragraph are not true.

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    Quote Originally Posted by acemona View Post
    It is obvious that the first two sentences in the last paragraph are not true.
    Government, on the other hand, is an unregulated monopoly that sets its own rules and enforces them as and when it sees fit.
    ?

    Whatever you say ace.

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    There are individuals who do not understand the marketplace as they have never owned or run a business. And because they have worked for the government in one form or another for so long, they have forgotten what it is like to work in a private business.

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    Quote Originally Posted by marvel View Post
    ?

    Whatever you say ace.
    You quoted the third sentence.

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    Quote Originally Posted by doubledeuce View Post
    You quoted the third sentence.
    My bad.

    Competition and the rule of law check individual greed in the market. These mechanisms are not perfect, but at least they exist.
    ?

    Whatever you say ace.

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    Quote Originally Posted by bballfamily View Post
    There are individuals who do not understand the marketplace as they have never owned or run a business. And because they have worked for the government in one form or another for so long, they have forgotten what it is like to work in a private business.
    Obama hasn't forgotten. He never learned in the first place.

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    Quote Originally Posted by acemona View Post
    It is obvious that the first two sentences in the last paragraph are not true.
    Who checks the union greed Ace? Unions demanding more and more is what has broken the banks of many states...

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    Quote Originally Posted by cammando View Post
    Who checks the union greed Ace? Unions demanding more and more is what has broken the banks of many states...
    Management keeps them in check. Demanding more has not caused anything, agreeing to it has.

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    Quote Originally Posted by cammando View Post
    Who checks the union greed Ace? Unions demanding more and more is what has broken the banks of many states...
    Mgt. and Ownership has the power. Don't agree to what the Unions bargain for, and move on. When it is all said and done, they can fire everyone and hire new folks.

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    Quote Originally Posted by acemona View Post
    Mgt. and Ownership has the power. Don't agree to what the Unions bargain for, and move on. When it is all said and done, they can fire everyone and hire new folks.
    If it were that easy we wouldn't have unions.

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    Quote Originally Posted by acemona View Post
    Mgt. and Ownership has the power. Don't agree to what the Unions bargain for, and move on. When it is all said and done, they can fire everyone and hire new folks.
    Might work for private sector unions but who is the owners and management of public sector unions?

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    Quote Originally Posted by bballfamily View Post
    There are individuals who do not understand the marketplace as they have never owned or run a business. And because they have worked for the government in one form or another for so long, they have forgotten what it is like to work in a private business.


    Exactly. They are often referred to as college "professors".

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    Quote Originally Posted by titletownclown View Post


    Exactly. They are often referred to as college "professors".
    I believe the old saying goes something like this: "Those who can't succeed, usually end up teaching a college course on the subject."

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    Quote Originally Posted by cammando View Post
    Might work for private sector unions but who is the owners and management of public sector unions?
    The officials that you elect.

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