Frank, Even if you lost no money in the bear market, you are going to pay for those who did in Pennsylvania.
A local anecdote:
(Summarized from local news, and understand I have nothing against teachers, I've got family in that profession!)
Local property taxes in Pennsylvania are going up because teachers pension fund gave teachers a 25% increase (!) AND that fund, the Public School Employees Retirement System, also suffered investment losses.
Either property taxes go up as high as 10% or state income taxes go up to fund this.
This will not sit well with employees, for example, at a local large employer, a Fortune 500 company, who are on the verge of a strike because that company has increased employee contributions to medical benefits five fold while offering a 2.5% raise. Net of the raise is very small. Said employees also lost their retirement medical benefits for about half their employees, all the younger ones, between contracts. They are not going to be happy having to pay for the PSERS large pension increase AND PSERS investment losses while they lose their own wage growth AND pay much higher benefit costs AND higher taxes.
It adds another reason for them to hold out for higher wages.
This story is deja vu for me, it recalls news stories of the inflationary 70's.
Best Regards,
Roebear |
