You have been warned. If you were a city worker anywhere in this country and are or will draw a pension, you are in grave danger of losing that pension without warning in the future.
That in essence, was what a Federal Judge ruled yesterday when he allowed the city of Detroit to proceed with it's bankruptcy. In effect, what he did with that ruling was allow the city of Detroit (and any future city that files bankruptcy) the ability to disallow all of those pensions. So, the guy that put in 30 years on the street crew in Motown, took his retirement and moved to The Villages, is in for a shock when he gets a letter saying because Big D has gone under, he no longer has a pension. It's kinda like waking up one day and seeing your IRA has been snatched and you're left with nothing.
It's a scary thought in this day and age. If you're like me, you've grown up paying Social Security taxes, realizing that you probably wouldn't see a penny of it back in benefits. Now that I'm getting VERY close to actually qualifying for Social Security, I'm getting more and more antsy. It's not meant to live on, it's meant to be a supplement to my retirement, but I can do just fine on it if I have to. Now the thought of losing a Social Security benefit after I've paid into it my entire life, AND losing my IRA (I never worked for a city), is downright frightening. It shouldn't have to happen.
It did in Detroit. Decades of one-party rule, that didn't understand budgeting and union negotiations played into their hands. When the population of Detroit started shrinking back in the 1970's, city council should have cut their budget. But big government types don't believe in budget cuts. So, they kept the budget where it was. For decades. And when they would tell the unions that there wasn't any money for raises, the unions (wisely at the time), said, "OK, if that's the case, then just pick up our contribution to our pensions". And cities all over the country did just that. Now the bill is coming due.
It's only at the city level so far. But it's going to hit states before long. Wait and watch Obama's home state as the pre-cursor to states falling apart. Illinois is in the worse shape of any state in the country. Overspending, and corruption have weighed heavily in their downfall. It's one of the highest taxed states in the country, yet they can never seem to make ends meet. And when that crash happens, and it will, all hell will break loose. California isn't too far behind, and then you're going to see New York go under, and Pennsylvania, and other Democratic strongholds. Notice one thing. This isn't happening in GOP controlled cities or states. They know how to be fiscally responsible. It's one more reason why smaller government works. Big government is fine as long as you can pay for it, but small government is fine anytime. Liberals haven't learned that lesson yet...but they're about to!
And what about Obama bailing out the city of Detroit? That's a non-starter. That man is burning through his political capital on healthcare. He doesn't have anything to spare for Detroit, even though they helped put him in the White House twice. No, I can't see Obama going to the GOP controlled house and asking for billions in bailout money for Detroit, when a) the city was ruined by the Democratic Party and the Unions and b) Obama won't let them take the money for a Detroit bailout from Obamacare.
Meanwhile, the poor people (and that's all that's left) of Detroit sit and wonder where all of that wonderful "Obama money" is and when it's coming. Folks, it ain't. It's just like his presidency. It was a lie and it's not going to be there for you.
And if you're a pensioner from Detroit, beware! You're about to have to master the phrase "Do you want fries with that" just to stay alive.
Have a nice day!
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