December 31, 2009

NICK GILLESPIE: Public Sector Drives Deep Into The Night. “There is a looming showdown in American society between public-sector employees and the rest of us, in terms of job security and, especially, unsustainable gold-plated retirement and health benefits that are working hard to bankrupt whole states such as California, New York, and New Jersey. As with some parts of the private sector (domestically owned auto companies, for instance), basic compensation packages were hammered into place in a very different America, and conferred massive future benefits when politicians were either too stupid or too cowardly to confront basic questions of fiscal responsibility. Do you want to spend your life (and have your kids spend their lives) to pay ever-increasing taxes for teacher, cop, and bureaucrat retirements at early ages? Especially while you’re expected to fully fund your own? This is a social contract that needs to be redrawn ASAP.”

It’s not a contract — those involve voluntary exchange — but it will be redrawn, one way or another.