Tuesday, August 09, 2011

They could have used some of that tea party terrorism

You may remember Froma Harrop as one of the thousands of journalists last week trumpeting the "tea partiers = terrorist meme".

Her column today is proof evidence that she is a moron. She's highlighting the bankruptcy of Central Falls RI yet can't seem to get the neurons to connect that maybe if there was some tea party terrorism introduced to that city 20 years ago, the city might actually be able to pay their retiree's pensions.............

If any U.S. city was destined to go bankrupt, it was this one -- though Vallejo, Calif., beat it by three years. Like Vallejo, ruinous public-employee contracts sent Central Falls over the edge. Unlike the San Francisco suburb, Central Falls has a smaller, less economically diverse tax base. (The median household income is under $33,520 a year.) Its local government at the time of the bankruptcy filing was far more corrupt than Vallejo's.

On this thin tax base, Central Falls faced an annual deficit of $5 million and unfunded pension obligations of $80 million. For a long time, its police and firefighters could retire on full pensions after only 20 years of service. So even though their monthly payouts were not princely, workers could start collecting them -- and free health coverage for life -- while in their 40s. Bankruptcy lets a city tear up union contracts and start over.

What an idiot. What in the hell do these media types see when they watch news coverage of riots in London and Greece and see municipalities default on their "contracts"with their pensioners? It baffles all common sense and reasoning.


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