Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘wall street journal’

More Salvos in the False “Class War” on Public Pensions

Thursday, August 26th, 2010

amytraub4Repeat something often enough and it becomes, if not true, at least a solid bit of conventional wisdom. Consider Ron Lieber’s column in Saturday’s New York Times, which neatly recycles an editorial the Wall Street Journal ran back in March. The issue: the pensions that guarantee public employees a middle-class standard of living in retirement have become more difficult for cities and states to afford. This, according to Lieber and the chorus of conservatives singing the same tune, means a “class war” pitting sanitation workers who deferred compensation so that they could retire with dignity against “have-not” taxpayers who would like some retirement security of their own. Lieber even knows the outcome: public workers should to get ready for many more states and municipalities to engage in “rare acts of courage” and break their promises to pensioners.

Jonathan Cohn at the New Republic asks the obvious question “to what extent is the problem that retirement benefits for everybody else have become too stingy?”

It’s a point I’ve been making as well:

One out of three working Americans has no retirement savings to rely on beyond Social Security, many others have saved very little, especially now that the value of their homes has been destroyed. When it’s public pensions that are falling short, it’s very visible. When it’s the private savings of millions of individual households, it’s easy to overlook. But when we start to hear that it has become “too expensive” to provide teachers and police officers with a decent retirement, we know no one else has a chance at retirement security either.

Former Colorado Governor Richard Lamm, quoted in Lieber’s article, takes the point to its logical conclusion, arguing that “the New Deal is demographically obsolete.” Translation: we’d all better get used to the new normal of low pay, few benefits, and no retirement, sooner rather than later. After all, demographics are inexorable. Resistance is futile.

As Paul Krugman points out in today’s Times, the same air of inevitability hangs over the provision of critical state and city services. Cities and states are broke, the argument goes, there’s nothing we can do. We can neither keep streetlights on nor let teachers retire. Except that in both cases the argument is false:

We’re told that we have no choice, that basic government functions — essential services that have been provided for generations — are no longer affordable. And it’s true that state and local governments, hit hard by the recession, are cash-strapped. But they wouldn’t be quite as cash-strapped if their politicians were willing to consider at least some tax increases.

Krugman’s point about how we got here is equally true of the debate around public employees and their pensions:

It’s the logical consequence of three decades of antigovernment rhetoric, rhetoric that has convinced many voters that a dollar collected in taxes is always a dollar wasted, that the public sector can’t do anything right.

Unfortunately, Lieber’s column effectively adds to that rhetoric.

About the Author: Amy Traub is the Director of Research at the Drum Major Institute. A native of the Cleveland area, Amy is a Phi Beta Kappa graduate of the University of Chicago. Before coming to the Drum Major Institute, Amy headed the research department of a major New York City labor union, where her efforts contributed to the resolution of strikes and successful union organizing campaigns by hundreds of working New Yorkers.

Why Today's Workplace Readers Should Think About Attending The ROI of Great Workplaces Conference

Thursday, September 10th, 2009

You found this blog, or return to it, because you’re interested in workplace rights and employers that follow the law to a tee, right?  Well, you’ll find the latest, best information on both and meet some dynamic business contacts to boot at Winning Workplaces’ 2009 annual event that will be held in Chicago on October 1-2.  We’re calling it the ROI of Great Workplaces Conference.

Click here to:

  • View event summary
  • Add event to your calendar
  • Watch a short highlights reel from our 2008 conference
  • View fees and agenda (note that the agenda is still coming together)
  • Learn about the location
  • Book your room at the event hotel at the special Winning Workplaces rate

Besides the short video of last year’s conference at the above link, you can get a sense of what attendees experienced by checking out my photo recaps on our blog here and here.

Here’s more incentive to attend: Be one of the first 100 people to register and get $100 off your registration.  Just click here and enter coupon code FRSTHUND when prompted.

Some of my favorite moments at this event happen when I meet new business people in between sessions.  This was the case last year when I was finally able to meet and sit down with your host on this blog, Paula Brantner.  I hope I’ll be able to do the same with you this year.

Register now for this event.

About the Author: Mark Harbeke ensures that content on Winning Workplaces’ website is up-to-date, accurate and engaging. He also writes and edits their monthly e-newsletter, Ideas, and provides graphic design and marketing support. His experience includes serving as editorial assistant for Meredith Corporation’s Midwest Living magazine title, publications editor for Visionation, Ltd., and proofreader for the National Association of Boards of Pharmacy. Mark holds a bachelor’s degree in journalism from Drake University. Winning Workplaces is a not-for-profit providing consulting, training and information to help small and midsize organizations create great workplaces. Too often, the information and resources needed to create a high-performance workplace are out of reach for all but the largest organizations. Winning Workplaces is changing that by offering employers affordable consulting, training and information.

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