Home > Economic, Social > New Jersey throws pensioners under the bus

New Jersey throws pensioners under the bus

The state of NJ has thrown its pensioners under the bus. The recent “agreement” reached between Governor Christie and the “leaders” of the Senate and Assembly have decided to forgo cost of living increases for those retirees receiving NJ pensions. While on the surface this may seem a reasonable and “acceptable” compromise, closer scrutiny reveals that this is an insidious plan that will leave pensioners who had worked their entire lives and paid their agreed to amounts into the system faithfully, (unlike the state of NJ) with a rapidly decreasing standard of living or potentially totally broke.

www.ShadowStats.com

Courtesy of shadowstats.com

Let’s analyze what will happen. We all know that inflation is increasing and will continue to accelerate as the Federal Resereve continues to print more dollars to protect the interests of Wall Street and the “too big to fail” banks. The official government figures for inflation stand at approximately 2.5% to 3%, but everyone who has to support a family knows that these highly manipulated figures do not represent the real rate of inflation. Shadowstats.com, a highly regarded website that calculates the real rates has determined that the current inflation rate is at 12%, not the much lower government figure.

Now consider this: if the true rate of inflation is 12%, IN 4 SHORT YEARS PENSIONERS WILL LOSE HALF OF THEIR BUYING POWER! Consider how much buying power will be lost over 8 years, or 12 years. These pensioners will have close to NOTHING!

Governor Christie talks about “shared sacrifice”, but in reality he gave tax cuts to millionaires and billionaires while cutting programs for those who need it the most and now the pensioners. This is Robin Hood in reverse, he is taking from the poor to finance tax cuts for the rich. Where is the shared sacrifice here? Will the millionaire bankers, hedge fund managers, and corporate executives suffer a 50% cut in their income in 4 years? You can bet you would hear howls of protest from them if he tried to do that.

Billions for banks, poverty for the restThis “pension” reform needs to be exposed for what it really is. This is nothing less than a total reneging on their social contract with the people who worked their entire lives in service to the public. Let’s not forget that it was not the police, public nurses, teachers, and firefighters who caused the state’s economic problems. The problem was caused by a percipitous drop in revenue and the ones responsible for that are the Wall Street types, the big bankers, and the speculators. These people paid themselves $millions in bonuses for a job well done and they still get tax cuts from the governor while the pensioners will be left with nothing?

Wake up America, what happens here affects everyone. Think Social Security and don’t think that YOU will not be the next target of the financial elites and their hired politicians.

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  1. June 19, 2011 at 5:50 AM

    Governor Hamburger has managed to show us what our soon to be former “friends of labor” are really all about. THEMSELVES!!!! They have joined the governor in his blame politics. The public sector is the last of the good jobs in NJ and in the country. Once the GOP succeeds in destroying their union rights, we will officially have the two class economy. Workers better fight back now, union or not, as this is class warfare. Greedy Cowards are those from the Democratic Party who have joined the millionaire agenda of Christie’s. The last resort, is to VOTE them out!!!! I will listen to any alternative to what we have now.November is fast approaching, GET YOUR ACT TOGETHER DEMOCRATS and realize you are screwin your people.

  2. David Shields
    June 20, 2011 at 9:51 PM

    It may well be true that the NJ state government did not fund the plan as they should have over the years. I am also sure that the plan has taken a real beating in the financial downturn starting in 2007. State pension plans also tend to use overly optimistic assumptions for predicting returns. But if the money does not exist to pay the predicted pension costs then what is the state government supposed to do ? They can not raise taxes enough to pay the costs – that will result in people, companies (jobs), and capital fleeing the state. They can not print their way out as the states can not create money like the Federal Reserve. The state can default or the state can try to reduce the costs to something that can be paid. Voting for dems will not change the facts on the ground any at all. As a matter of fact, it is mainly dems that got us into this mess, although the repubs are not clean either.

    • June 24, 2011 at 5:17 PM

      How can it be right to cut a pensioner’s benefits by half in 4 short years, and impoverish them in the next 8, while the millionaires use that money to fund their tax cuts?

      While this may not generate enough revenue to meet these shortfall needs, it certainly could be used to alleviate some of this draconian cut. It would give everyone a sense of shared sacrifice.

      We are now witnessing are only the the opening shots in an orchestrated attack on the benefits of what is left of the middle class. Once they are sucessful here, the next target will be Social Security. Despite the fact that there is a $2 TRILLION (that would be $2000 billion) in the trust fund, the bought and paid for politicans are telling us that it also is broke and needs to be cut. Of course the money has does not exist because it was used to fund the elites’ endless wars, corporate welfare, bailouts etc.

      So buck up, pull in your belt and take it like a man, these cuts are now needed so we can cover up our theft. No one seems to be suggesting that we lift the $106,000 threshold on the SS tax which would make the system solvent for decades longer. Now the government is dipping into federal workers’ pension to finance itself until the debt seiling is raised. Sounds very similar to the SS theft we have witnessed.

      So what I am saying is that there is pattern here, the pensioners pay, the rich play. I say we need to reverse that, and that if we do not unite, they will pick us all off slowly one at a time using the old divide and conquer tactic.

      Remember the poem about the Nazi era:

      When the Nazis came for the communists,
      I remained silent;
      I was not a communist.

      When they locked up the social democrats,
      I remained silent;
      I was not a social democrat.

      When they came for the trade unionists,
      I did not speak out;
      I was not a trade unionist.

      When they came for the Jews,
      I remained silent;
      I wasn’t a Jew.

      When they came for me,
      there was no one left to speak out.

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