There is a dirty secret about state entitlements that liberals don’t want you to know. The collection of a state pension increases the chances that a pensioner will live in poverty. That’s because money put aside for state-guaranteed benefits can not be safely invested at rates that provide for more than a modest retirement unless the state subsidizes retirement benefits through taxes or if retirement savings are invested in riskier, higher yielding investments. Since governments are loath to raise taxes to subsidize a riskless retirement, benefits are eventually reduced. It works that way in London and Moscow as well as Madison...
While what you say might sound like a good idea, there are deeper underlying issues. First government employees cannot actually contribute to their retirement, hence the term UNFUNDED ENTITLEMENT, because government does not generate income, only expenses that must be paid by the working private sector and businesses. Second, government employees get more than one UNFUNDED ENTITLEMENT. Not only do they get their government retirement check they also get social security. Many government retirees also get second and sometimes third retirement check; called double and triple dippers. Third, government payroll deductions (starting in 1983) for social security are spent then the private sector is taxed again to pay the entitlement.
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