Martin Armstrong: The Pension Crisis is Starting to Explode

Armstrong Economics, Released on 2/21/19

At the current federal minimum wage of $7.25 per hour, working 40 hours per week, 52 weeks per year, yields an annual income of only $15,080. This is below the annual poverty line.


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Serious, serious issue that congress and the states, if they were responsible and did their jobs, would have addressed a long time ago before it got out of hand. Instead, these pensions (and social security as well) were not funded properly and the consequences of not doing so pushed off into the future … now, the “chickens have come home to roost”. Now, the unions are crying in Illinois and Kentucky that American taxpayers should bail them out. Forget California … any official who reasonably tried to say that there was a problem with available money to fulfill the pension promises was not re-elected … Look at when Arnold Schwarzenaeger(sp) was governor. So many locales have cut essential services (police, fire departments, etc.) in trying to find money to pay for these pensions.
Congress and states need to take a serious look at these pensions and, quite honestly, do away with them. It isn’t why Americans pay taxes. Governments have given themselves so many benefits at the taxpayers’ expense — this needs to stop. It is congress & the state governments who determines these perks. Cut the size of government and get your hands out of the American taxpayers’ pockets!