Democrats are panicking about one financial disaster they created

Democrats never get tired of spending other people’s money.

But the chickens always come home to roost.

And Democrats are panicking about one financial disaster they created.

One of the big problems with public sector unions is that they negotiate against the taxpayers.

And corrupt politicians will effectively buy off union votes by giving the unions what they want because they will be out of office when the bill comes due.

This has caused many municipalities around the country to go broke because of unfunded liabilities.

The problem has been exacerbated by pension funds taking a hit due to the recent stock market downturn.

Wannabe Democrat presidential candidates are worried about hit to pension funds

And Democrat governors with presidential aspirations are in panic mode.

POLITICO reported that “the stock market’s plunge battered public retirement systems in 2022. The outlook for 2023 is even more grim. With Wall Street CEOs warning of financial carnage ahead, governors overseeing some of the nation’s largest pension systems are bracing for a hit to state investment funds that have long supported benefit plans and cash-strapped budgets. The longer the decline, the harder it gets for governments to pay retirement benefits promised to millions of teachers, cops, firefighters and other workers in exchange for careers in public service. But the political stakes are also high for key Democrats — including Govs. Gavin Newsom of California, J.B. Pritzker of Illinois and Phil Murphy of New Jersey — who have touted their records as fiscal stewards as they angle for a bigger role on a national stage.”

A lot of people on the Left who think the stock market is just for rich Wall Street fat cats don’t realize that some of the biggest funds in the market are union pensions.

Stock market downturns are particularly bad for people near retirement when their pension fund could get slashed without time to rebound.

Leonard Gilroy, senior managing director of the Reason Foundation’s Pension Integrity Project, explained, “There’s going to be acute fiscal pain and pressure the more you ignore the cost…If you’re not paying it down, you’re chasing it.”

Democrats believe in economic fairytales like modern monetary theory.

They think they can spend money indefinitely without any consequences.

Inflation is the consequence, and it crushes people living on fixed incomes, such as retirees.

POLITICO added that the “California Public Employees’ Retirement System, the country’s largest public pension, lost almost $30 billion in the downturn. New Jersey and Illinois pensions also finished their fiscal years in the red — as did almost every other state and local retirement system. Many investors aren’t expecting much better in the near term.”

Bad fiscal policy comes with repercussions, and Democrat politicians are bracing for impact.

Stay tuned to Blue State Blues for any updates to this ongoing story.

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