Desperate Hot Springs – Another California city teeters on the edge of bankruptcy

By Steven Greenhut
12/10/2013
In what may be the most embarrassing California-related headline to appear in a while, Reuters announced last month: Tony resort city mulls bankruptcy, blaming wages, pensions. That supposedly “tony” city is Desert Hot Springs, on the northern edge of the Coachella Valley near Palm Springs. Though it’s certainly true that Palm Springs and many of its...

TAGS: Desert Hot Springs, municipal bankruptcy, public employee compensation

Scranton Faces Bankruptcy, Unions Want to Raise Taxes

By Mike Shedlock
11/12/2013
It is truly pathetic watching politicians flop like fish out of water trying to prevent something that was clearly inevitable long ago. Please consider Moody’s warns of bankruptcy in Scranton as city faces $20 million budget gap.  Moody’s warned investors that Scranton could be facing the threat of default or bankruptcy thanks to a $20 million...

TAGS: Mike Shedlock, municipal bankruptcy

Ten Fallacies Used To Justify Opulent Government Pensions

By Richard Rider
10/02/2013
There are many implicit rationalizations justifying paying generous government pensions. Here are my nominations for the top ten bogus excuses: 1. “Public employees deserve high pensions because of their low pay.” FALSE. Perhaps true at one time, but not anymore. In many instances, today’s government employees are earning 10%-30% more than their true private sector...

TAGS: municipal bankruptcy, Public sector pensions, public sector unions, Richard Rider