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New Jersey State Pensions: $100,000 to $195,000 a Year

Written by Gary North on April 16, 2012

There are 1,200 people in New Jersey who pull pensions of more than $100,000 a year.

Across the nation, the state pension systems are creating red ink for state and local governments. The unions negotiated these deals. Now the taxpayers are trapped.

Of course,  they are not trapped. These states and municipalities can declare bankruptcy, the same way a private firm can. They can shed their obligations.

Governments at all levels now face a choice: cut existing programs or re-negotiate future pensions. But legally they can’t cut existing pensions. So, we can expect to see fewer government programs.

The pension obligations are today a bigger threat to expanding governments than the Tea Party is. The Tea Party has government unions on their side. The more the unions get for their members, the less money is left over to expand the power of government.

So, the news on the pension fund front is bad for taxpayers, but it’s worse for local power-seekers who want to expand the governments.

Government debt piles up. But debt has this advantage: it squeezes current government. The only way to expand government these days is with more debt. Voters can organize to vote down bond issues. This is crucial in stoppong the growth of government.

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7 thoughts on “New Jersey State Pensions: $100,000 to $195,000 a Year

  1. bullrider says:

    Glenn Beck was right when he said on his old FOX news network program that these pensions were negotiated with the knowledge (at least of the unions) that they would be unsustainable beyond one generation to pay for, and he was right. Of course the public unions, knowing they could strike to force us to pay for these pensions, did not care that their demands were outrageous and simply not affordable. I hope and pray that Wisconsin’s governor survives the recall election because that is the first salvo in the union’s attempt to hold America to the unfair contracts they were given – by Democrats, to placate or purchase the votes of the unions.

  2. Gloria Wedemeyer says:

    Politicians don't care what they promise union workers or how much health care and pensions people working for the government get as they know by the time the S – – – hits the fan, they will be long gone.

  3. Gregoire says:

    Under a bankruptcy, what is to stop the Federal government from taking over the states just as they did the auto companies. Might this just be another case of the 'power above/power below' working to destroy the union.

  4. The PowerHour with Joyce Riley.

  5. Scott Todd says:

    I doubt they'll do it to destroy unions (at least the Dems won't).

  6. FatMan45 says:

    Who is the knucklehead who wrote this? I can't believe it's Gary North – I'm usually in agreement with him!

    "The Tea Party has government unions on their side. The more the unions get for their members, the less money is left over to expand the power of government."

    That doesn't help the Tea Party at all, at least not the ones I know! T.E.A. = Taxed Enough Already. The problem is not that we don't have enough revenue, it's that it is being wasted on union pensions and other benefits, rather than the duties government is supposed to fulfill.

  7. Freeindeed says:

    I think that the point being made was that unions' insistence that pension promises must be kept will end up limiting the government's immediate options for expanding its interference in our lives.
    As long as there are idiots in positions of power there should be no assumption that reducing their allowance will increase their intelligence. The best we can hope for is that the consequences of their foolish decisions will impede their ability to make more.