The San Diego Experiment

San Diego, California, is a place to keep an eye on as it serves as a laboratory for Movement Conservative experiments in economic malfeasance and runaway plutocracy, helped along by a marvelously kleptocratic and corrupt Democratic contingent. This is the mess Pete Wilson built. The biggest experiment underway right now is how to use Republican controlled major municipalities to eliminate any kind of retirement for workers except 401(k)s. They just might get away with it.

The City of San Diego stopped participating in Social Security system in 1982, when Pete Wilson was mayor, in exchange for a city-funded retirement pension and health care package. City employees do not pay into Social Security or Medicare. The current retirement system is a slightly better than Social Security deal for ordinary long-term employees. Short term employees (less than 10 years of employment) are not vested, so it is a worse deal. For a small number of very long term employees who are at the top of the civil service ladder, especially those in Police, Fire or Life Guard positions, it is a much better deal than Social Security. The people at the top have more opportunities to game the system and maximize their eventual payout. In short, business as usual for the oligarchic kleptocracy.

Investments

Marshall Auerback on New Deal 2.0, lays into the Catfood Commission's disingenuous calls for sacrifice:

This latter development has now gathered pace and found its fullest expression through the US National Commission on Fiscal Responsibility and Reform (an Orwellian title if ever there was one) established by President Obama. The Commission has proposed a $3.8 trillion deficit cutting plan that would trim Social Security and Medicare, reduce income-tax rates and eliminate tax breaks, including the mortgage-interest deduction. Yes, there are token cuts in Defense spending in the interests of “fairness”, but the cuts are heavily skewed toward middle class entitlements. (Which is a deceiving word because it implies that we’re just a bunch of weak supplicants, dependent on the graces of the government. Why don’t we call these programs “enablements”?) The priorities laid out by the Commission are truly symptomatic of the degeneracy of our governing class compared to the days of the Great Depression. Grand projects started then are still delivering value to communities and private business interests some 80 years after their completion.