David Cay Johnston is disappointed with reporting on Wisconsin Gov. Scott Walker’s attempt to end collective bargaining for public-sector employees. Why? Because reporters have conflated “benefits” with “pensions,” when they’re anything but. He explains:
Out of every dollar that funds Wisconsin' s pension and health insurance plans for state workers, 100 cents comes from the state workers.
How can that be? Because the "contributions" consist of money that employees chose to take as deferred wages – as pensions when they retire – rather than take immediately in cash. The same is true with the health care plan. If this were not so a serious crime would be taking place, the gift of public funds rather than payment for services.
Thus, state workers are not being asked to simply "contribute more" to Wisconsin' s retirement system (or as the argument goes, "pay their fair share" of retirement costs as do employees in Wisconsin' s private sector who still have pensions and health insurance). They are being asked to accept a cut in their salaries so that the state of Wisconsin can use the money to fill the hole left by tax cuts and reduced audits of corporations in Wisconsin.
Again, the situation in Wisconsin has little to do with future accounting or “fairness,” and everything to do with power; Walker doesn't want to renegotiate a prior arrangement, he wants to break public-sector unions and the state's Democratic Party. Understanding this fact is key to understanding Walker's refusal to budge, as well as the huge backlash from the left.
