Local, state and fed were given the right to unionize, our gov’t service sector could unionize and control taxes and spending, back in the 60s. By the 80s the gov’t of the USA at all levels was like a monster sized GM. Those armies of gov’t union workers started retiring in the late 90s and every year for at least the past 20 years the cost of the gov’t pensions, to the taxpayers, has gone up at 2-3 times inflation (in NYS the pension payouts average 8% increase each year for at least the past 10 years while inflation and GDP growth have been in the low 2s).
Gov’t can’t grow at a rate faster then inflation without sucking the economy dry. In the USA, just like Greece, the taxpayers allowed the unions and welfare voters to control elections in order to get higher pay and benefits (evil politicians would forfeit the future of USA and/or their state for short term political gains just like the union boss/CEO deals that collapsed GM…if the bankruptcy happens 20-30 years later then the union boss/CEO/politician is long gone so they can promise pensions and retirement benefits with no ability to actually pay them but it is not their problem….in fact the gov’t politician retires and lives off a huge pension for life while the country collapses trying to pay those pensions…..
Over the past several years, the Federal Reserve and the U.S. government have tried everything that they can think of to stimulate this dead horse of an economy but nothing has worked. The Fed has slashed the federal funds rate to record low levels, mortgage rates have been pushed to all-time lows and the U.S. government has spent hundreds of billions of dollars in an effort to get the economy going. But despite all these of these extraordinary efforts, the U.S. economy continues to just lie there like a dead corpse. Never before have the Federal Reserve and the U.S. government done more to try to stimulate the economy and never before have their efforts produced such poor results. Home sales continue to set new record lows, more than 14 million Americans continue to be unemployed, foreclosures continue to soar, personal bankruptcies continue to soar and an increasing number of Americans continue to sign up for food stamps and other anti-poverty programs. All of the things that once worked so well to stimulate the U.S. economy seem to be doing next to nothing here in 2010, and the American people are becoming increasingly frustrated by economic problems that just keep getting worse.
until we kill GAFTA and GATT and other job killing trade agreements and bring back good jobs and manufacturing the economy will continue to be dead corpse and really begin to stink
but our bankstermasters don’t want that..
they want more desolate slaves ..more money.. and always always always.
The Fed will eventually have to take over the pensions of private and public unions and we are talking about TRILLIONS in empty promises that the Fed will try to pay by printing TRILLIONS of dollars….the bailout of gov’t pensions will make TARP and Stimulus bailouts look like chump change….