Compton, Calif. is laying off employees in an effort to avoid going bankrupt, but whether this can save the city is yet to be determined. More cities and other political subdivisions have similar problems and do not know how to solve them.
Several times, going back more than a year ago, I predicted this would happen, the principal cause of their predicament -- too generous retirement plans. Compton is paying retired workers the money needed for the workers filling the necessary jobs.
I hate to say "I told you so," but in January of 2011 I headlined one post, "Have Unions and Cowardly Politicians Brought Us to Our Knees?" The article mentioned that Detroit was considering closing half its schools in order to give in to union demands for generous pensions and early retirement. Camden, N.J. was considering laying off half its policemen and firemen because it pays so much in pensions.
Elected officials must make tough choices. Let's see how many have courage to do so.
Several times, going back more than a year ago, I predicted this would happen, the principal cause of their predicament -- too generous retirement plans. Compton is paying retired workers the money needed for the workers filling the necessary jobs.
I hate to say "I told you so," but in January of 2011 I headlined one post, "Have Unions and Cowardly Politicians Brought Us to Our Knees?" The article mentioned that Detroit was considering closing half its schools in order to give in to union demands for generous pensions and early retirement. Camden, N.J. was considering laying off half its policemen and firemen because it pays so much in pensions.
Elected officials must make tough choices. Let's see how many have courage to do so.
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