|
Letter to Sacramento Bee
By Adam Summers
Dan Walters's column about the secrecy, risk, and political motivations behind the California Public Employees' Retirement System's investment decisions should raise red flags for legislators currently considering AB 2940, a plan to allow private-sector workers whose employers don't offer pensions or IRA plans to open retirement accounts through CalPERS.
Concentrating the power to invest hundreds of billions of dollars in the hands of a small group of union representatives and other politically connected officials necessarily leads to the politicization of investment decisions. This setup allows the pension board to circumvent the democratic process and pursue its political or ideological objectives through the power of the pension purse.
If legislators really want to encourage saving, they should reduce the state's heavy tax burden and let people keep more of their money to begin with. Then they should take a long look in the mirror. With its $17 billion-plus budget deficit, California has certainly set a poor example of financial responsibility. Rather than trying to compete with the private sector in an investment services industry where there is already robust competition, the state would be better served by getting its own fiscal house in order.
Adam Summers is a policy analyst at the Reason Foundation. An archive of Summers' work is here, and Reason's California research and commentary is here.
The California High-Speed Rail Proposal: A Due Diligence Report
» Press Release
» Full Study (.pdf)
» Policy Brief (.pdf)
» More Materials from this Study
Streamlining San Diego: Achieving Taxpayer Savings and Government Reforms Through Managed Competition
» Full Text (.pdf)
» Press Release
Occupational Licensing: Ranking the States and Exploring Alternatives
» Full Study (.pdf)
» Policy Summary (.pdf)
» State-by-State Occupational Licensing List (.xls)
» Press Release with Complete Rankings
Sensible Policies for Medical Marijuana Dispensaries in Los Angeles
» Full Brief (.pdf)
No Choices Left Behind: Competitive Models to Restructure California's Lowest-Performing Schools
» Full Study (.pdf)
» Press Release
Undermining the Future: Problems with November's Bond Initiatives, and Alternatives
» Full Brief (.pdf)
More Studies
High-Speed Rail Will Add to State's Budget Woes
» Full Text
California Focus: High-Speed Rail Measure on Wrong Track
» Full Text
California's Proposition 7 Is Flawed
» Full Text
Swimming in Red Ink, California Wants to Borrow More Money
» Full Text
California's Budget Crisis Continues
» Full Text
Gay Marriage on California's November Ballot
» Full Text
Not the Time for Tax Increases in California
» Full Text
Taco Wars in Los Angeles
» Full Text
More Commentaries
|
3415 S. Sepulveda Blvd.