Arnold’s op-ed in today’s WSJ is worth the time. Basically he contrasts the unionized public employees with the poor unemployed working stiffs who are expected to support them through taxes. A couple of charts are telling:
![[schwarzenegger]](http://sg.wsj.net/public/resources/images/ED-AM115B_schwa_NS_20100826182703.gif)
He highlights the games played: phony portfolio return assumptions, “spiking” promotions, and retirement at 55. Points out the fact that private employees make less and have less retirement security–their 401k s have declined 20% in value since 2007 while state employee pensions have grown during that period. The public employee effectively has $1 Million in retirement savings!
He calls for a stop to taxes and borrowing to fund pensions. He wants a reversal of the massive retroactive pension increases passed eleven years ago. He wants greater employee contributions to the pensions.
Unfortunately, he fails to call for a constitutional amendment prohibiting public employee unions. This is the only effective way to break the unholy alliance between the democratic legislators and the public employee unions that get them elected. Until that is ended the dirty money game between the two groups will continue.
I commend a full reading of Arnold’s call for reform. Note that it comes from a RINO, and that is a positive step indeed.