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    • What May’s Brexit Deal Tells Us About The EU and Britain’s Future
      So, May has a Brexit deal. It’s a terrible deal, which makes the UK subject to many EU laws, and which doesn’t allow Britain to withdraw from the deal if the EU doesn’t want it to. This has caused ministerial resignations, and Corbyn has come out against it. But the interesting part is what the […]
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Who could have predicted??

I haven’t written much about the Cromnibus bill because it snuck up on us, didn’t it? It probably didn’t spring fully formed from the head of Zeus overnight. The various political movers and players had to have been working on it for some time, probably before the election. Nothing should be shocking anymore but I do admit to being surprised at how thoroughly the pension system has been undermined and how much ground the bankers have gained back. You would think that Democrats would have put up more of a fight because it’s not going to end well for a generation of people my age who played by the rules, lived within their means, paid in advance, and still got laid off and ripped off.

In any case, it was all pretty predictable back in 2008. Here’s one of my posts from May 2008 as we watched the party invite the vampires in and the level of peer pressure, vicious attacks on the Clintonista holdouts and accusations of racism directed at us reached a crescendo. I was not entirely correct about the result of these attacks on us. Back then, I thought there would be a backlash from the party faithful that got chucked overboard. There was but it was a very bad idea called the Tea Party. That was a waste. It’s only made things worse.

Note that we were pretty spot on about who had taken over the party.

Here’s the gist of it from Bird Brains, May 2008:

It looks like people higher up in the food chain are considering a protest vote as well. Taylor Marsh writes that even Geraldine Ferraro is disgusted. And, predictably, the accusations of political immaturity are not far behind.

Let me set the record straight for those of you who don’t understand where this is coming from (referring to a video link now lost). This DNC and the Obama campaign have conducted the campaign season as if they took lessons from the Enron boys from the movie, The Smartest Guys in the Room. There’s something distinctly unDemocratic about the whole thing. It doesn’t pass the smell test.  Cokie Roberts (of all people) mentioned it a couple of days ago. The process for picking a candidate is deeply flawed and *could* be easily manipulated to thwart rather than confirm the will of the people. It’s like the California deregulation plans that were just sitting there waiting for some clever traders to game the system for fun and profit at “granny’s” expense.

The system is flush with cash and one can almost imagine the operatives sitting at their monitors hearts pumping with adrenaline while they pull out all of the stops, reaching deep down into the modern American psyche in order to power play off all the weaknesses there that will result in a maximum payoff. Assertive women, men with hardhats, hillbilles, grannies ripe for rapping, gays and lesbians all provide targets for the aggressive young, male and pretentious to exercise their new social hierarchy. The level of viciousness is reaching a fever pitch.

Who is giving them permission to set aside their ethics and shuffle off the standards of acceptable behavior? Who is running the party that allows for the brutal suppression of one half by the unleashed id of the other half? I put the blame at the top of the party and Obama himself.

There is a price to be paid for such aggressive and insensitive behavior. People do have free will. The party belongs to the people who believe in its principles. Those principles of social justice, equality and shared responsibility can not be discarded for Change! without the party suffering some severe blows to its foundation. Going forward, the party becomes a fragile shell, easily blown to bits by outside forces because its foundations of support have been carelessly undermined.

This is where we are. The foundations of support, the people and principles that made the Democratic party viable and strong, are being callously destroyed by those who have been given permission to rig the system for one candidate over the other. Those of us who stayed with the party and our country through decades of movement conservatism, who volunteered our time and our voices, who suffered withering criticism and family divisions for not adopting Republican values, who protested the war, the attacks on science, the regression of women’s and GBLT progress in the public sphere, the subjugation of the working class have all been told that we’re not wanted anymore. Our party has evolved and we, like neanderthals, didn’t make the cut.

And Voila! The Cromnibus bill.

It’s not looking good. I don’t watch cable news. Katiebird does. She says the level of propaganda on MSNBC is just as bad as it is on Fox News. I’m glad I’m missing it.

No, I don’t think Elizabeth Warren can save us.  We’re going to have to save ourselves, from ourselves.

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What the bankers are doing to Detroit is criminal

Go read No Banker Left Behind at the NYTimes.  Let us recap, shall we?

The bankers, who had all of their bonuses protected and bailed out with our federal tax dollars when they blew up the world because people like Larry Summers argued that it was unfair to violate their compensation contracts, are bearing down on Detroit to pay outrageous sums of money on ill-advised derivatives transactions that will result in innocent Detroit municipal employees forfeiting up to 90% of their pensions.

I blame Obama.  Yes, I do.  If he had come into office committed to holding responsible the people who lied, conned and irresponsibly gambled away our money, we might well be on the road to real recovery right now.  Instead, he had people like Larry Summers and Tim Geithner advising him to go easy on the bankers because shoring up the banks was THE most important thing.

Screw everyone else.

What I really regret is that so many former Democrats went off in a rabid frenzy over some stupid birth certificate issue instead of focussing on the real offenses of this White House.  So much time and energy wasted over citizenship red herrings and vacations.  I’m not sure which is worse.  Stupid conservative leaning Democrats or banker lackeys in the Oval Office.

Whichever it is, Detroit’s employees shouldn’t have their lives ruined over it and I have yet to see Obama step up and prevent this unfolding tragedy from taking place.  Which only means one thing to the rest of us: if our own pension plans go belly up because of some stupid merger or incompetent pension fund manager or predatory bankers, we’re all equally screwed.  No one is going to step up and protect your deferred compensation for all your years of work.

The White House is just going to let the bankers drink your milk shake.

Jeez, it’s only your pensions. Give a banker a break

Reversing the kettling procedure in Madrid, Sept. 25, 2012

Yesterday, Madrid had massive protests over austerity measures.  Today, it’s Greece.  Will Ireland follow suit or are they just into suffering?

Time will tell but it looks like people will need to get a lot more insistent before the bankers and governmental officials get the point.  Austerity and scarcity are artificially constructed situations.  What governments haven’t had the guts to do is tell their banker gamblers to take a haircut.

And then there’s all those 401Ks that need to be appeased.  We brought that on ourselves when we listened to the gamblers and decided to join them at the global casino instead of saving most of our retirement money in nice, boring pensions.  You know, the nice boring pensions that our parents retired on and live a nice, comfy lifestyle with a paid for house and a yearly cruise to the Panama Canal?  Is that so awful??  No, it is not.  But it is certainly not what you’re going to get if the stock market takes another steep, steady dive and fails to recover before you’re old enough to retire.

Anyway, the peasants are revolting.  Go peasants!

Reviving the Wooly Mamouth or Surviving the 401(k) Scam

It’s just a drop in the bucket of mostly misleading information but this post deserves attention:

The 401k Scam by By Nathaniel Downes

The Demos report is an eye opener as to the hidden costs which cause 401k programs to not only fail to keep up with inflation, but to fall behind even the base amount invested into these funds.

What they found was that, for the projected samples that the 401k would lose over $155k for its entire lifetime. Since the entire sample fund at the time of retirement would be $320k, that means a full third of the money which was put into the system was taken by the 401k itself in the guise of fees.

How does this work you may ask? The report goes into detail, but we shall give a simplified example here.

First, your 401k funds are typically put into mutual funds, so let us first address those.

If you put $10,000 into a mutual fund which lists a 3% return, it sounds good, yes? But that is after the fees are deducted. These fees are listed as a percentage of your total investment, but they are deducted from the revenue generated. You get $300 added to the $10,000, but that was after the $150 in “expense ratio,” mutual fund fees such as marketing fees, management fees, and administration feeds, as well as $150 in direct transaction fees have been removed. Your $10,000 had earned $600, but half of that was eaten up in fees. And it does this each and every year. $300 every year for 40 years gives you $12,000 in total fees deducted, more than your original investment.

After some easy to follow charts and more explanation he goes on to describe how pensions are different:

By comparison, a pension plan is a form of insurance, similar to what you would find for your automobile or your healthcare. Money taken in is used to pay out for those who have met the qualifications for payment. Many of these systems use surplus funds to invest in stable, fixed investments, such as treasury bonds. Social Security works in this manner, surplus funds paid in go into a special trust fund filled with US Treasury Notes, pre-paid cash in effect. The trade-off for this is that the amounts paid out are not directly owned by the individual, they are a large pool that all tap into.

(post title stolen from a comment following the post)

Saturday: Power Wash

It’s a nice day, the kid is available, why not power wash the house? That’s what’s on the menu today. I’m headed off to the rental place to pick the washer up. Fun, fun.

In the meantime, remember a couple weeks ago when I wrote that Pfizer was a poster child for The Strategy of No Strategy and that the pension fund would start looking like a target soon?

Gettin’ closer. Pfizer announced on Thursday that they were ending their pension plan. Yep, everyone will now be transitioned to a 401K. Isn’t that special? It looks like people with pensions in companies that were acquired may be safe (please, please, please) but, you know, who knows at this point. The change in the pension plan will affect people who will be turning 55 in about the year 2018. Unfortunately, I know a number of Pfizer employees who may be affected by that and can only imagine how thrilled they are at this news after the cruel amount of stress they’ve been through in the past 4 years.

So, to recap, for scientists living in America but not some parts of Europe:

  • Pharmageddon continues at a steady pace, throwing many, many scientists out of work, perhaps permanently.
  • The only jobs we can get pay a LOT less. You don’t even want to know.
  • Benefits are few to non-existent.
  • Job-hopping and instability is now “expected”. You may have to leave your family behind. Better yet, don’t have a family.
  • You might end up working for a CRO where your input in projects is restricted to task oriented, boring procedures all day, like widget making. No more creativity or learning will be necessary after all those hard science courses.
  • You probably won’t be getting that pension you were counting on after 2 decades of work.
  • If you want health insurance for yourself and your family, you’ll have to pay through the nose for it from your vastly reduced salary at a CRO.
  • Your 401K is tanking- again. But THIS time, because you are out of work, there won’t be any build-back.
  • You are slowly being turned into an “entrepreneur” without any of the benefits. No group insurance rates, no labor protections, no reasonable business loans, and the costs of starting your own pharma, with all of it’s associated risks, are astronomical and suicidal. If you haven’t asked yourself whether all of the entrepreneur talk politicians keep touting will eventually lead to abuse and exploitation of workers without protections, now’s the time to think it over.
  • And finally, the morons in Congress whose skinny necks you would like to wring right now are blithely and capriciously talking about significantly reducing the only retirement option left to you- Social Security. (BTW, see Charles Pierce’s destruction of David Brooks this week. Very satisfying. I strongly suggest David Brooks stay out of central New Jersey because there are a lot of unemployed cancer researchers who he finds indistinguishable from Maury Povitch trailer trash who would like to rip the face off of people like him- metaphorically, of course.)

You know those elected people in Washington? Yeah, I hate those people. I knew the bastards would be putting the screws to us before the election to make people panic and agree to anything. But I never thought they could be this clueless, savage or viciously cruel. I’m not afraid but I am extremely angry at both parties. And, Yes, I know one party is much worse than the other but it hardly makes a difference which party is the worst when both have now crossed the threshold to the dark side. That leaves the vast majority of us without representation but still paying taxes, unemployed or not. And taxation without representation fueled the last revolution.

We are living in a kleptocracy and Democrats did not try hard enough to keep it from happening. Everything you’ve ever worked for your entire life can be stolen from you piece by piece. Your career, your patents, your house, your pensions, your retirement nest egg and all of those extra taxes you paid into a Social Security plan. Promises can be broken, you could get screwed and end up dying poor and no one is held accountable.

Yep, what Washington, DC needs is a good power wash, on the inside.

P.S.- Working people who vote Republican because of social issues should have their heads examined.

‘gits
****************************************
One more thing: according to a new book by James Mann, Hillary Clinton and Timothy Geithner didn’t get along at the beginning of the Obama administration. Geithner was muscling Clinton aside when it came to dealing with China. It seems that Geithner wanted the Treasury department to be in charge of foreign policy with China and to concentrate solely on economics. Clinton wanted to address more than economic matters and wasn’t going to yield on China. There was a standoff and Clinton won. But she was overruled on the issue of ambassador appointments. Why is that significant? It’s because the ambassador that Obama appointed to China is none other than former Republican presidential candidate and wealthy chemical company scion Jon Huntsman. Yep, read it and weep, labrats. The guy that Obama appointed to China at a time when our jobs were hemorrhaging there was none other than a Republican chemical company guy who speaks Mandarin.

No wonder this administration doesn’t give a royal F#%* about the destruction of our American research industry. It was the plan all along. Right, Mr. Geithner? You guys did nothing to slow things down. In fact, you went out of your way to make it easier for our companies to relocate to Shanghai.

So, let’s review: the people who really didn’t get along with Tim Geithner were all women. They were Sheila Bair, Elizabeth Warren, Christina Romer and Hillary Clinton. I’m sure there are others but any woman who stands up to Geithner and disagrees with him is ok by me. All of these women proposed policies that were ignored by Geithner and the White House but would later turn out to be right. In every case, Geithner had the upper hand except in his interactions with Hillary, where she had a victory on overall policy with China but didn’t get to pick the ambassadors.

And we’re still not at war with Iran.

It’s amazing how so many Democratic party activists got it so wrong. I wonder how that happened, given that they supposedly do not fall for political mind tricks and propaganda…

The Poster Child of “The Strategy of No Strategy”: Pfizer

Pfizer is trying to reinvent itself by shrinking, according to the New York Times. I can’t say that I’m surprised.  The CEOs and financial guys are still living in their own worlds.

The Strategy of No Strategy is strong in this one.  Oh such tasty morsels in this article.  Where to start.  How about this paragraph full of chewy goodness:

Pfizer — once the Big in Big Pharma — is making a radical shift, one being watched closely by the rest of the industry. It is getting smaller.

Last week the company announced it was selling its infant nutrition business to Nestlé for $11.85 billion, and it is expected to divest its profitable animal health business by next year. At the same time, the company is slashing as much as 30 percent of its research budget as part of a plan to focus on only the most promising areas, like cancer andAlzheimer’s disease.

1.) It’s getting smaller only 2 years after it made itself bigger.  Pfizer bought up Wyeth and laid off every single one of my friends and former colleagues in research.  It hired back a handful and sent them to Groton, CT.  I’ll get to Groton in a minute.

2.) It’s getting rid of valuable assets to concentrate on cancer and Alzheimers.  And why those two therapeutic areas, you ask?  Allow me to get cynical.  Well, more cynical than I already am.  These two diseases progress rapidly and the sufferers are almost desperate for a cure, cancer drugs get fast tracked for approval, toxicity profiles are relaxed, you can pretty much charge what the market will bear, and even if the drugs fail the patients rarely complain.  So, quick approval and no class action lawsuits.  What’s not to love?  Looks like you Lupus sufferers and schizophrenics are SOL though.

“It’s not necessarily smaller per se, it’s focused,” Ian C. Read, Pfizer’s chief executive, said in an interview Tuesday. “We are at our heart a biopharmaceutical company focused on applying science to improving people’s quality of life. That is what our core is. That is what will determine our success.”

{{rolling eyes}}

This part is good:

Drug executives are asking themselves: “What is it that we now face, given that in the past decade — when everything was going right — we didn’t build with this future in mind?” said Jeremy Levin, who oversaw a similar reorganization of Bristol-Myers Squibb and is about to take over as chief executive at Teva Pharmaceuticals.

At Pfizer, skeptics have questioned the decision to shed some of its most profitable units in favor of doubling down on the risky pharmaceutical business. Pfizer’s nutrition unit grew by 15 percent and animal health by 17 percent in 2011, while its pharmaceutical sales dipped by 1 percent. And Pfizer has suffered some notable flops over the last several years, including the failure of an experimental cholesterol treatment that was seen as a potential successor to Lipitor and poor sales of an inhaled insulin drug that the company eventually abandoned.

So, in the past decade, when everything was going right, why did Pfizer decide to eat smaller companies and lay off all the research staff and put companies and projects in a state of limbo while they merged, and how could that *possibly* result in not building with the future in mind?

Now it’s selling off it’s most profitable divisions.  It doesn’t take a rocket scientist to realize that it’s doing it to pay off the shareholders, who must be obeyed after all:

The acquisitions, some said, turned Pfizer into a Frankenstein’s monster — a giant stitched together from the scraps of smaller companies that lurched forward with little purpose.

“I think the company sort of lost their way in the years before the Wyeth acquisition,” said Catherine J. Arnold, an analyst for Credit Suisse.

Ya think?  Hey, how about the next time a merger is in the works, we actually ask the people discovering drugs whether it is a good idea.

Oh and about that plan to cut research costs by 30%:

Even so, the company’s decision to cut research budgets as it is planning to recommit to its pharmaceutical core struck some as risky. Mr. Gordon, the Michigan business professor, called it a “magic trick.”

It’s a magic trick, however, that most major pharmaceutical companies are also trying. “The question is how do you remain successful and sustain your operations if you’re investing less and less in R&D?” said Kenneth I. Kaitin, a professor and director of Tufts University’s Center for the Study of Drug Development. “The answer to that is to try to find a new way and a more efficient mechanism for discovering and developing drugs.”

If you want to discover more drugs, cut research!  Everyone is doing it.  Let me just suggest to the “smartness” crowd and masters of the shareholder universe that the reason you don’t have any blockbusters is because you treated research like a red-headed stepchild while you were busily merging your little hearts out and collecting bonus checks.  “A more efficient mechanism for discovering drugs” now means outsourcing to China all the grunt work while trying to buy licenses for drugs from struggling and desperate former research staff who will sell them for a tiny fraction of what they may be worth.

Pfizer plans to reduce its research budget from $9.4 billion in 2010 to $6.5 billion to $7 billion this year. It closed a research center in Britain and has been trimming its facility in Groton, Conn., and moving resources to areas closer to universities in Boston and Cambridge, England.

In 2011, the company ended 91 projects, canceling programs aimed at treating bladder infection, for example, as well as one to treat nasal symptoms from allergies. Company executives have also said they will be on the lookout for smaller acquisitions to fill gaps in their portfolio, and will expand partnerships with academic institutions.

Mr. Read said the cuts would not affect the areas that the company has prioritized. “Most of what I cut had a low probability of success,” he said.

Those projects had an even lower probability of success after tens of thousands of research jobs were cut, the budget was slashed more times than a libidinous teenager in a horror movie and the rest of the staff was made to play a game of musical chairs moving from Princeton and Pearl River to Groton to not Groton but we don’t know where yet to Cambridge.  I’ve heard reports that the few former Wyeth staff have been laid off more than once since the merger.

Pfizer has to be the poster child of The Strategy of No Strategy.  They’ve abandoned some of their hardest, smartest workers, and I know some of these people so I know how good they are, to chase get-rich-quick-schemes from the oh so cleverer people at Harvard and MIT and then get Chinese PhDs at a fraction of the cost to churn out compounds in Shanghai.  Pfizer has completely abandoned the idea that it takes 10-15 years to discover and develop a drug, and that continuity of research is crucial.  Pfizer first acquired and then ripped apart all of the smaller pharmas under it to become a bloated behemoth of a leviathan that could be consumed by shareholders in wild abandon.  It’s left a big gaping hole in the pharmaceutical landscape and so far as I can tell, not one politician has bothered to find out why our drug discovery expertise is disappearing right before our very eyes.

Right about now, it is dawning on Wall Street, the CEOs and the investors that they have unleashed Pharmageddon and that they’ve made some big mistakes, not least of which is that the profits that can be shared are slowing down to a mere trickle.  Nevermind all the scientists who no longer have careers, what about their bonuses?? I don’t know about bonuses. My former colleagues and I should be worried about our pensions.  That big pile of cash is going to look mighty tasty and we are all headed for a seniority of deprivation if we don’t figure out a way to stop them from consuming it all.

Friday: Defeat for NJ Public Unions

How did this fly under the radar?  I blame joblessness on my own part and Anthony Weiner’s penis.

TRENTON — New Jersey lawmakers tonight voted to enact a sweeping plan to cut public worker benefits after a long day of high-pitched political drama in the streets of Trenton and behind closed doors.

Union members chanted outside the Statehouse and in the Assembly balcony, and dissident Democrats tried to stall with amendments and technicalities. Although they successfully convinced top lawmakers to remove a controversial provision restricting public workers’ access to out-of-state medical care, they failed to halt a historic defeat for New Jersey’s powerful unions and a political victory for Republican Gov. Chris Christie.

[…]

The bill passed the Assembly 46-32 and will be sent to Christie’s desk for his signature. Fourteen Democrats voted for the bill, while 32 opposed it. After the vote, protesters in the balcony shouted “Shame on you!”

Unions have blasted the bill for ending their ability to collectively bargain their medical benefits. Health care plans for 500,000 public workers would be set by a new state panel comprised of union workers and state managers, rather than at the negotiating table. A sunset provision would allow unions to resume collective bargaining after increased health care contributions are phased in over four years.

In addition, police officers, firefighters, teachers and rank-and-file public workers would all pay more for their pensions and health benefits.

Supporters of the bill say the state needs to cut costs because the pension and health systems are underfunded by more than $120 billion total. The Christie administration estimated the bill would save $3 billion in health benefits over the next 10 years and $120 billion in pension costs over 30 years. Much of the pension savings are from the controversial elimination of the cost-of-living adjustments for retirees, which unions have threatened to challenge in court.

The bill that passed will affect not only future retirees but *current* ones by eliminating cost of living increases. (People who think the Republicans won’t screw around with Medicare for current retirees should think again.  In fact, anyone who is not wealthy and is still a Republican should have their head examined.)  Some people might ask what’s the big deal but it’s already ridiculously expensive to live in New Jersey.  In my suburb, the median salary is $109,000/year and that and a quarter will get you a modest townhouse, barely. Those of us without jobs are really screwed but it’s not much better for people living on pensions when the property taxes soar.  We can thank Christie Todd Whitman for the pension problems.  I believe it was Whitman who shoved the burden of financing the pensions onto local municipalities in the 90’s.

There are many problems with the way NJ runs its local governments.  Frankly, there are too many of them.  This is the densest state of the union in terms of population and the state is carved up into thousands of tiny fiefdoms that are run inefficiently. Not only is there a lot of duplication of effort, some residents get away with paying relatively little. One middle class suburb might have sky high property taxes while a swankier suburb with higher real estate values pays substantially less in property taxes.  The difference is that the middle class suburb is a receiving school district while the Bonus Class suburb is a sending district that doesn’t need to fund facilities or staff for the high school.  Isn’t that conveeeeeenient?

In this state, it feels like the burden of funding everything is squarely on the shoulders of the middle class.  You educate the children of the poor AND the wealthy.  It’s a sweet deal if you’re rich and can benefit from the property tax version of the Matthew Effect.  The property tax issue and home rule problem here has been extremely resistant to modification.  But it doesn’t help that neither the state legislature, nor any governor of NJ I’ve ever suffered under, has made any attempt to make it fairer for the people most under stress by the tax situation.  The rich get richer, the poor get a lot of grandstanding but no real solutions and the middle gets the shaft.

Local government is expensive.  You definitely get what you pay for.  I would prefer a more equitable way to fund the state rather than the crushing property taxes that are forcing some of us out of NJ.  A higher tax on the rich is way overdue.  Municipal government overhaul is overdue.  Shifting the burden from property taxes to an occupation tax and a more progressive income tax is way overdue.  Loosening up the state’s bizarre liquor license laws to reel in more revenue is overdue (very few groceries sell wine, beer or liquor and very few restaurants have liquor licenses).

But year after year, the only solution that is ever proposed is to underfund the pensions and demonize the unions.  The politicians in this state are completely inept at ever addressing any of the problems that have plagued NJ since I moved here 20 years ago.  This is no way to treat your children’s teachers, or your neighborhood police officers or your emergency services people or any of the other people you forget you need until you need them.  Joblessness and a reduced income trickles down on the handyman, the cashier whose grocery store is closing and the piano teachers.  We all suffer when the rich rig the system in their favor and screw the rest of us.

A word to the stingy, MBA class suburbanites: When you go to the next Board of Ed meeting to complain about the budget or the fact that your bratty, overindulged kid has to walk on pavement to get to the bus stop, leave your $58,000 Lexus SUVs at home.  Driving them when your kid’s favorite social studies teacher is about to get the ax is in very bad taste.  I know, I know, no one will tell you this but I feel I owe it to you to let you know how crass, rude and insensitive it is.  You look like novo riche, status conscious social climbers and a school board meeting is not a place to do networking.

Did I mention  I am willing to relocate?

Anywhere but here.

The following is a statement from NJEA president Barbara Keshishian:

“Today marks a new low point in the attack on New Jersey’s school employees and other public workers.  With their action today, the 46 Assembly members who voted ‘yes’ sent a clear message that their promises aren’t worth the paper they are written on.

“By stripping even currently retired public employees of their promised and earned cost-of-living adjustments, these legislators signaled that no promise they make should ever be believed by any New Jersey voter.

“Retirees who count on their pensions for a modest level of security after a lifetime of public service will suffer because of today’s vote.  NJEA will challenge these illegal actions in court.  We cannot and will not allow this outrageous raid on retirees’ pension checks to stand.  This pension raid would reduce many retired workers’ pensions by 40% or more by the end of their lives.

“A legislature and governor who will raid the pension checks of retirees and the paychecks of middle-class workers but lack the courage or integrity to ask the very wealthy to share the sacrifice of even a modest tax increase are not the representatives of the people who elected them.

“Politicians who think it is acceptable to ask middle-class families to pay $5,000 more out of pocket for drastically reduced benefits but refuse to ask a $5,000 sacrifice from taxpayers earning $750,000 a year have failed in their obligation to represent the interests of all their constituents.

“Elected leaders who say they support collective bargaining but vote to undermine it as severely as this legislation does cannot be trusted or believed any longer when they claim to stand for the values and principles that working-class voters hold dear.

“Today’s vote was a victory for those who believe that America’s widening wealth gap and its growing preference for the wealthy over the working class are good for America.  For those of us who believe that democracy belongs to all voters, regardless of their wealth, today serves as a call to take back our government by joining forces with elected leaders and those who aspire to office who truly believe in fairness, honesty and genuine collaboration.

“We salute the 32 brave Assemblywomen and Assemblymen who opposed this attack on the middle class, as well as the 16 honorable Senators who did the same earlier this week.  The 200,000 members of the New Jersey Education Association will not forget the courage and integrity they demonstrated throughout this process.”