So lets say as a teacher I start out making the average pay of 50k/yr, plus my wage grows by 2% per year, which would barely keep up with inflation. (Most teachers are outperforming inflation in terms of pay raises)
If I start out as a teacher making a base salary of 50k per year (which only includes base salary, and doesnât even include the ridiculous benefits) that would put me at 82k per year after 25 years. The overwhelming majority of states give out 90% of the final salary after 25 years, and also give free health and dental benefits every single year. Plus the retirement salary adjusts for inflation every single year, which means that 25 years from now a teacher will be locked in at 73,800 dollars per year in terms of inflation adjusted dollars, with all their dental and health covered for life, after they retire.
Now let us see what a person could get in the private sector if the person was to religiously invest 10k per year over the course of 25 years.
Let us say we start at the same 50k salary i have listed above, which is above private sector average and this person has to pay 10k every single year into a retirement fund in order to plan to retire 25 years from now. I will give this person the benefit of the doubt and say that he was able to write off the entire 10k, and invest it tax free, but given the fact that IRAâs only allow 5k, the ability to invest 10k per year tax free is highly suspect.
Now if a person in the private sector was to invest the full 10k/yr into something which yielded 7% compounding interest for life, he would end up with $676,764 after 25 years. If this guy was to take his 676,764 and invest it into risk free investments, and obtain 5% on his money in retirement(again im giving the benefit of the doubt) he will be left with 33,800 dollars per year, and he is also left stuck with the entire bill for medical/dental for himself and his family.
So the guy in the private sector has to give up 20% of his income for life, in order to get HALF salary and NONEof the benefits the guy in the public sector is going to get. (and that is using numbers which are generous to the public sector.)Is there anyone on the left who can argue that these numbers are not out of whack?
A teacher works 6 and a half hour days for 9 months of the year, the guy in the private sector works 8 hour days 11 months or more of the year.
I know this is common knowledge to anyone with a brain but i want to put the argument to rest.
In short here is a quick breakdown of the numbers i came up with which were more then generous to try to be fair to teachers.
Teacher makes 20% more for life, and works 25% less, plus teacher gets full benefits for life with twice the retirement income.
Private sector employee makes 20% less, works 25% more, and gets half the retirement income with no benefits.
Can anyone possibly justify this sytem????
If it was up to me i would chop more than 50% of the military budget as well, so your point is a non sequitur.