05.26.2010 1

Union pension bailout lies are being spread

By Adam Bitely

Media Matters is up to their usual tricks. According to an article in The Atlantic, Media Matters is claiming that the amount of money being proposed for the purpose of “saving” (Media Matters claims that it is NOT a bailout…) the labor union pensions that are underwater is not $165 billion but rather $8-10 billion.

They’re wrong.

The correct answer is that there is currently no fixed number for the bailouts being proposed. In fact, we have no idea where they are getting the idea that it is only $8-10 billion.

Here is what we do know. The bailout will be in the neighborhood of $165 billion (most likely more), which is the current amount of unfunded pension liability according to Moody’s. According to Yid With Lid, 108 Union pensions are currently underfunded. There is no disputing these facts.

Need some further evidence, check out this article from the Hudson Institute.

The facts are in. Once Congress starts rewarding bad behavior with bad policies like bailouts, the price tag for errors always increases. The Union pensions will likely be more expensive than $165 billion when all is said and done. To claim that it is a mere $8-10 billion is absurd.

This is bad legislation even if it put the taxpayer on the hook for $0.01 of the underfunded pensions. A vote for this is a vote for financial catastrophe. I hope these 9 GOP House members remember that.

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