The New York Magazine "Red State Teachers Unrest continues to spread" and the Apple Cart Syndrome

in #money6 years ago (edited)

It is not a debate whether or not Teachers deserve a raise or that the school systems need more resources to educate our children. Its not a debate over RED State vs Blue State and treatment of Teachers. It comes down to Economic Fundamentals.
I remember growing up and the adults would tell me best jobs are State and Federal Jobs. These Jobs had the best pay and best pension plan benefits. If you were lucky enough to get one of those jobs you were set for life. This included the Teaching jobs at public schools. For decades the Public Sector Jobs were the best, because the State & Federal taxes covered the costs of the jobs. But the number of Public Jobs, Salaries and Pension Fund Liabilities increased beyond the tax revenues. The Politicians had three choices raise taxes, decrease spending or borrow money via Bonds. If they raise taxes this made the citizens unhappy. If they decrease spending this made the public employees unhappy. So in many cases the politicians borrowed money to keep everyone happy. What happens is the Apple Cart Syndrome. There are more people in the Apple Cart than pulling the Cart. The Federal Government can print money and State Governments can not. Many States are nearing Bankruptcy and the employees are finding out that the promises made were just a political Ponzi Scheme.

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