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36 Billion Dollar Boondoggle (Vol. 83)

Updated: Feb 7, 2023

analyticsbox | Dec 21, 2022

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Bailing out Broke Union Pensions:

So just how does that benefit the public?

President Biden just bailed out a union pension fund for 36 Billion dollars. With dismay, I asked myself, ‘How can he use our tax dollars to do that?’

He can, he did, and it is all legal. Buried in the 1.9 Trillion dollar, multi-thousand page bill for ‘COVID relief’, the American Rescue Plan in 2021, included 86 Billion dollars to subsidize more than 200 failing union multi-employer pension plans.

Would someone please explain why our tax dollars should be used like that? How does that benefit the public? Is it our problem that union pension funds have been improperly managed, or worse? I am sorry that the pensioners came up short, but we didn't do that. And we shouldn't fix it.

Worse yet, that is the tip of the iceberg and it will encourage reckless management of pensions knowing ‘Uncle Sugar’ will bail them out.

Here is the main point: that is how DC works, unfortunately. It writes unreadable bills, leaves Congress no time to review, and is filled with mountains of special interest money which have no benefit to the public. Then, it passes it. Often, many do not even know how much crap is in it. Current Example - Omnibus Spending Bill under consideration right now. It is over 4,000 pages developed behind closed doors, and only days to ‘digest and pass’ it.

THAT IS A SMALL PART OF THE FISCAL IRRESPONSIBILITY WHICH IS CAUSING THE U.S. TO GO BROKE.

Here we go with a few more examples (a complete list would fill a book…and it did):

  1. Tariffs. This is a tax on imported goods which is passed along to consumers in the form of higher prices. It is to benefit select industries by making the competition more expensive and the ‘protected’ industries can sell more. Consumers pay higher prices to benefit select industries.

  2. Farm price supports. This raises farm prices above the equilibrium price in the market (If you are not familiar with Supply and Demand principles and equilibrium price, see Chapter 3 in our book on our website.) This causes a surplus which the government buys and stores until they give it away or it rots. Consumers pay more to benefit agriculture.

  3. Student Debt Forgiveness. Over 400 Billion of taxpayer money given away under a rationale so remote it looks like the courts will not allow it, thank you. I will not venture into the politics of this boondoggle, but I saw this comment. "Why is canceling student debt a good idea? Does it make sense to reward people who do not honor their financial commitment by taxing the people who do?"

  4. Electric Vehicle subsidies: Sounds good; Doesn’t work. Electric vehicles will not solve climate change (See Facts, No Spin #81 on Energy). And even if it helped, why should they use my tax dollars to subsidize electric vehicles. They are fine products, if you want one, buy one - and pay for it yourself. Our taxes benefit a select few who buy EV’s.

The list is endless but the point is this: DC spends enormous amounts of our tax dollars on pork and subsidies that do not benefit the taxpayer.

STOP IT. It would be a huge step in stopping the fiscal nightmare in DC. (See Facts, No Spin #82, The Wolf of Washington).

BOTTOM LINE

The fiscal mess and irresponsibility of our Congress hurts our economy and all of us today, and will eventually lead to the destruction of this great Country if it continues unchecked.

Join the Main Street Lobby on behalf of the ‘voting public’ and voice your opinions by going to our website and Contact Congress. It is a one click way to send a message, one already prepared or write your own.

LEARN ECONOMICS, THEN VOTE SMART

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