Matt Taibbi and David Sirota have investigated the myth that we retired teachers, policemen, and other municipal employees are bankrupting America’s cities.
Here is an excerpt:
“…the legend of the lazy, budget-devouring public-sector employee as the cause of America’s fiscal crises has in many cases been carefully manufactured by Wall-Street-funded organizations. Their goal is to pretend that modest retirement benefits are the cause of pension shortfalls. They promote this story even though data show that stock market declines from fraud in the financial services industry were most responsible for those shortfalls. The second problem is that the pension initiatives put forward by these reformers and the conservative politicians they back often propose moving America’s public pension money into labyrinthine and extremely expensive “alternative investment” programs. This is done in the name of saving taxpayer money, even though these “alternative investments” involve fees paid to billionaire money managers that are often nearly as high as the cuts to public worker benefits. In many cases, that means little real savings for taxpayers and less income for retirees – but a huge payout to Wall Street.”