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IPFS News Link • Economy - Economics USA

Pension gap divides public and private workers

• USA Today
As the first wave of boomers heads to retirement, the nation is dividing into 2 classes of workers: those who have government benefits and those who don't. The gap is accelerating in every way — pensions, medical benefits, retirement ages.

2 Comments in Response to

Comment by Dave Gallagher
Entered on:
""Taxation, as we have seen, takes from producers and gives to others. Any increase in taxation swells the resources, the in­comes, and usually the numbers of those living off the producers, while diminishing the production base from which these others are drawing their sustenance. Clearly, this is eventually a self-defeating process: there is a limit beyond which the top-heavy burden can no longer be carried by the diminishing stock of pro­ducers. Narrower limits are also imposed by the disincentive ef­fects of taxation. The greater the amount of taxes imposed on the producers—the taxpayers—the lower the marginal utility of work will be, for the returns from work are forcibly diminished, and the greater the marginal utility of leisure forgone. Not only that: the greater will be the incentive to shift from the ranks of the burdened taxpayers to the ranks of the tax-consumers, either as full-time bureaucrats or as those subsidized by the government. As a result, production will diminish even further, as people re­treat to leisure or scramble harder to join the ranks of the privi­leged tax-consumers.""

Murray Rothbard Man Economy & State

Comment by Jean Carbonneau
Entered on:

To add more insult to this idiocy, federal government workers will receive a supplemently payment at age 56 which is equal to the reduced Social Security payment they would receive at age 62. Guess who is responsible for this mess. The conservative icon himself, Ronnie Reagen