USA Today: Courage = Military Pension Cuts
|January 3, 2014||Posted by Staff under Editorials|
This 2014 excerpt of USA Today, Jan 2, is by their Editorial Board.
After 20 years of service, regardless of age, a military retiree can expect a pension equal to 50% of final pay. They can retire in their late 30s or early 40s and collect a pension — intended as old-age protection — in the prime of their working lives, with cost-of-living increases, for the rest of their lives.
This is accompanied by health coverage at $549 per year for a family.
40% of servicemembers have never seen a combat zone.
While the system encourages some people to consider the military who otherwise might not, it also encourages them to leave early, taking their first-rate training to go double-dip by moving into a civilian government job.
Proposed “cuts” come in the form of a reduction in cost-of-living adjustments by 1 percentage point each year until age 62.
The change would also make military pensions less wildly out of line with most Americans’ experience. Private-sector pensions, to the extent that they exist at all, are routinely scaled back or frozen in ways much more dramatic than these changes.
Ed. Notes: Are you obligated to fulfill a deal that you had no part in making? Perhaps you weren’t even born when the deal was negotiated. And one side of the negotiation did not even have their own resources on the table but were offering OPM (Other People’s Money, pronounced like “opium”), and that side — Congresspeople — were often elected by less than a majority, in a gerrymandered district, financed by big outside money. So how legit are these pension agreements? When enlistees accept these deals, they have to go into them with open eyes, just as anyone does when accepting any long-term deal. When circumstances change, deals have to change, too.
While some “retired” military personnel should quit demanding so much for having done so little — as they say in the army: “hurry up and wait” — there are ways to take the sting out of smaller military pensions.
- One is to disburse a Citizen’s Dividend to the populace, which of course would include retired military.
- Another is to earmark income tax revenue only to the military, meaning pensioned retirees would have to compete with those on active duty and over-stuffed military contractors for tax dollars, while citizens would have to use their dividend for programs like Medicare.
- Also, make government quit inflating the money supply, which would halt inflation, and allow techno-progress to constantly lower the cost of living.
- Ultimately, have government redirect all of society’s spending for land and resources into the public treasury, which would motivate owners and others to use sites and resources efficiently. In an efficient economy, everyone has the opportunity to prosper.
A rising tide really could lift all boats, ex-personnel included; military pension cuts are long overdue.