A Hedge-Fund Billionare From Texas is Waging War On California Pensions

[xchrom]

http://www.alternet.org/labor/hedge-fund-billionare-texas-waging-war-california-pensions



Benjamin Gamboa doesn’t know John Arnold, but they are linked by a shared concern over the fate of public-employee pensions in California.

“I’m proud to have a pension,” the 30-year-old Gamboa says. “I believe every American should have a pension.”

The two men live in very different worlds. Gamboa is a research analyst at Crafton Hills College in Yucaipa, California. Arnold is a hedge-fund billionaire from Houston, Texas.

There’s another difference between them: Arnold recently had a representative present at a secret “pension summit” held at a Sacramento hotel, where strategies to limit public employee retirement benefits were discussed; Gamboa, a union member, did not – representatives of labor were specifically not invited.

[badtoworse]

1. In the long run, I doubt that that states and cities can afford to maintain defined benefit plans.

They will ultimately switch to defined contribution plans just as the private sector has largely done. If they don't, I would expect to see many more Detroits as retiree costs consume an ever increasing portion of the tax base.

[LWolf]

2. I'd like to see more public sector, less private sector.

I'm fucking sick of the private sector.

[badtoworse]

3. Where would you get the money to pay them?

[LWolf]

4. More is not all.

I think ALL public services should be just that: public.

Education, health care, physical infrastructure, energy, information, fire protection, police protection, jails/prisons, all parts of any social and economic safety nets, MILITARY...should all be public. No privatization, no outsourcing.

That leaves plenty of room for private enterprise. I'd like to see the private sector much more heavily regulated.

Where does the money come from? From the same place it comes from now. Taxes.

I work in the public sector. I still pay income taxes, property taxes, licenses, etc.. So do the rest of my fellow public-sector workers.

Are you channeling Margaret Thatcher?

[badtoworse]

5. At the end of the day, it comes down to how much in taxes people will pay.

The well is not bottomless. If the tax burden gets too high, people will vote with their feet and businesses will build new plant elsewhere. A state or municpality that wants to retain private sector jobs (i.e. its tax base) will need to provide services at a competitive price. I don't believe that can be done with the public employees performing all the tasks you mentioned and receiving the traditional public sector benefits, such as free health insurance and a defined benefit pension.

Why do you think we have seen the number of municipal bankruptcies that have occured in the past year or so?

[LWolf]

6. All citizens should receive those traditional "public sector benefits." nt

[badtoworse]

7. I completely agree, but realistically, it's not going to happen in today's world

Both the public and private sector have to deal with fiscal reality. I don't know how to change that reality; do you?

[LWolf]

8. Realistically,

many things are possible, but the first step is to act as if they are possible and work persistently to move the line in that direction.

"Not going to happen" is a defeatist mindset that indeed defeats opportunities before we even get started.

And...I would rather fight like hell for the right thing, on any issue, and lose, than walk away without trying because "it's not going to happen." That's how you get things to the table and keep them there: you push them forward and fight for them.

Keep them on the table long enough, and ANYTHING is possible.

Examples? Look at all the unbelievable things Republicans, neo-cons, and neo-libs have pushed on to the table and fought for; some for a long time, but look at where we are today. Look at how we've regressed in the areas of social and economic justice. That didn't happen by accident.

WE could fight for what's right, even if it probably won't win this time, or next time. Commitment and perseverance will eventually pay off.