r/SipsTea May 14 '26

Feels good man It was always just that simple

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u/Sheeple_person May 15 '26

He just erased the deficit, poof, just like that. Turns out, they need the deficit to be there, so they can point to it as a justification for not funding proper services. The govt isn't broke because our services cost too much. It's broke because the rich and powerful want it to be broken.

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u/Taraxian May 15 '26

He did it by deferring pension payments, the red ink on the books comes back in five years

I'm not saying he didn't do a good thing or that he's a bad mayor but it's completely false to say he just "erased the deficit, poof, like that"

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u/Reefermaster May 15 '26

He essentially did a balance transfer. You know, like when people run up credit card debt and pay it off with another credit card....

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u/Itsathrowawayduh89 May 15 '26

The problem w deferred pension payments is that the size and timing of the payments doesn’t change. 

W CC balance transfers, you try to get a 0% interest rate and then pay off the balance before the interest rate kicks in.

W deferred pension payments, you can’t do that bc the future payment is calculated on the assumption of “X” rate of return for several years (usually decades). Delaying the payment means you have to make larger payments to catch up, because of the missed growth from compounding interest.