Anatomy of a bankruptcy

Labor economists tell us that compensation should be tied to performance of the job.  It tells us that retirement compensation is useful insofar as it ties employees with strong expertise to the organization during their most  productive years.  Like with so many other elements of economics, public employee unions turn this logic on its head.  Witness California where the average retired public school teacher is pulling down as much as the average active school teacher earns in salary in the rest of the nation.

California is so screwed.  The tragedy is that they screwed themselves.  The farce is that they just reelected all of the screwers.   Short the Golden Bear, buy the Lone Star.

Hat tip Carpe Diem