IMO, the attack against public sector unions, at least as it is suggested by Republican state governors and legislators that it is for economic reasons and to balance a state budget is bogus. It is to break the unions.
Here is an example from WI on the impact of the public employees pension in that state:
Quote:
Benefits paid by state and local pension plans support a significant amount of economic activity in the state of Wisconsin.
Pension benefits received by retirees are spent in the local community. This spending ripples through the economy, as one person’s spending becomes another person’s income, creating a multiplier effect.
Expenditures stemming from state and local pensions supported…
• 33,324 jobs that paid $1.7 billion in wages and salaries
• $4.5 billion in total economic output
•vv$732.6 million in federal, state, and local tax revenues
… in the state of Wisconsin.
Each dollar paid out in pension benefits supported $1.33 in total economic activity in Wisconsin.
Each dollar “invested” by Wisconsin taxpayers in these plans supported $7.47 in total economic activity in the state.
http://www.nirsonline.org/storage/ni...ctsheet_WI.pdf
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I think it is relevant to the discussion. Certainly more so than comments that small tax increases on top wage earners are a deterrent to working harder or some such argument.