On the face of it, it’s a good thing when the labor movement leverages the trillions of dollars–yes, that’s TRILLIONS–that sit in pension funds. It’s been a topic of debate for a long time. The question is: what do we get? Here is the example, via The Wall Street Journal:
New York Gov. Andrew Cuomo and state organized-labor leaders are exploring the idea of tapping private and public pension funds to help pay for an array of construction projects, including the overhaul of the Tappan Zee Bridge, according to people familiar with the matter.
The article doesn’t mention anything that labor leaders have gotten in return. Yes, I presume that the jobs on the bridge will be union. But, here is an opportunity to get something from the governor. I can think of two things:
To start, you want our money–how about demanding passage of the "millionaire’s tax", or as I like to refer to it the "modest dues to live in a functioning society" bill? Because, if we had that tax, and a more progressive tax system in this state, then, duh, there would be public money for…rebuilding bridges. for example. The governor currently opposes demanding that the richest one percent pay a little more.
Second thing: public pension funds in New York state ALONE lost $100 billion because of the financial crimes on Wall Street. There is a bill in the state legislature, the Lancman Libous bill, which both the New York state comptroller and the New York City comptroller support, because it would enable the pension funds to sue to recover billions that were stolen from the pension funds during the financial collapse. Why not demand that tapping workers’ pensions funds be tied to supporting a law that would make those very same pension funds whole from the crimes committed by the financial industry?
Simple.
