Conversation

Can someone ELI5 why pensions exist for jobs that aren't expected to beat your body in to disability through the course of service? I get it for super physically demanding stuff where injuries are high, like firefighting and infantry but why for postal workers & teachers?

You’re unable to view this Tweet because this account owner limits who can view their Tweets. Learn more

Jesse Powell

@jespow

Aug 17, 2020

Why not pay them market rate and let them sort out their own retirement like everyone else?

Eiaine@bitcoinhackers.org

@eiaine

Aug 17, 2020

because the employer doesn't have the cash to pay market rate up front. it's like social security, a pyramid scheme to promise future payments for work done today.

Replying to

and

If they don't have the cash now, what's the plan to get more cash later? Shouldn't not being able to pay people market rate be a sign that they need to sort out their business model? Raise prices or reduce services or whatever a business does? How did this ever get to be a thing?

5:23 AM · Aug 17, 2020Twitter Web App

Replying to

and

We're talking about AB 2088 here right? The answer is CA's legislators could fund reelections today with pension promises paid in the future. Public employee unions were betting on future politicians being able to squeeze more out of CA residents down the road. see also IL, NJ.

Replying to

and

There’s no business model for providing education to all children as a right. That’s why teachers get pensions. You can’t apply market logic

Eiaine@bitcoinhackers.org

Replying to

and

"more cash later" is someone else's problem. that's the downside of elected officials with limited duration terms. i guess a dictator-for-life would fix this.

Eiaine@bitcoinhackers.org

@eiaine

Aug 17, 2020

btw, you seem to think that running public services like private business would fix this -- it would not. Many companies are in the same boat, only propped up by cheap & easy borrowing. 19% of US listed companies are basically zombies wsj.com/articles/the-r

Replying to

and

The idea became popular after 1883 when Bismarck created the first public health care system in order to prevent the working class from rioting. It's simply cheaper than to fight them.