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Boston Properties Chairman Mort Zuckerman on cuts to public sector pensions as part of efforts to reduce government spending.
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Well joining me now billionaire populist real estate mogul and publisher Mort Zuckerman he's the chairman of Boston now properties.
And one of the most astute to political thinkers delighted to have you here.
To be here.
And -- you -- your reaction to to what rose has an historic victory in for governor Scott -- Well it was a huge victory in and -- -- -- -- Enormous political significance not just for that state but for all the states and municipalities in the country and ultimately for the federal government.
But what we have and have had now for a number of years our runaway public service employee costs.
And these costs have really inhibited the ability of states to support education to support infrastructure you name it.
And the problem that we have this is an inherent conflict of interest between the people on one side of the table and the people on the other side of the table.
That -- the politicians who make these decisions wanna get the support of the union.
This -- what announced San Jose California and San Diego California.
-- Both cities which have voted for President Obama 2008.
Overwhelmingly 66% incentive of 7% and -- Tuesday.
Saying roll back those public pensions we -- reported Iraq War.
That was unthinkable just a few years ago well we are now living in an era of on some level austerity.
And people don't like -- when they see what they have in the way of costs that are going to the public service union it's just disproportionate the average wage.
For a public service and employee vs the private sector employee.
-- fourteen dollars an hour higher if you just took in New York City for example.
Defined contribution rather instead of defined benefit the pensions.
New York City would -- 650 to 750 million dollars a year -- when everybody's working with deficits and trying to forgot how to meet the deficit.
You have a shortage now going into infrastructure shortage of funds for his support education and people are saying enough.
Well enough and it appears that this is a very serious perhaps battle for survival for public employee unions.
-- it's interesting that Governor Walker.
Has emerged.
With such and such power he has been absolutely.
I think one of the buying this I now.
I think he's been the best governor.
In the United States since he took office without question.
This was a battle led by unions -- and so right.
-- question and he was as he said.
It takes it takes a lot of guts for a politician to make the decisions he made and then to hang tough.
As he went through this -- because there is a huge amount of money that we're on account for the same politicians do this aspect -- I mean that it but that's a serious issue.
I mean the problem here is that we do not have the kind of political leadership that is willing to do these things to do the necessary things to deal with our -- -- deficit.
It not only at the federal level but at the state and local level very often you have very rarely the kind of politician -- that's what this has really -- -- As President Obama when her does now does look like he could look.
-- I have believed for a long time that this economy was very very weak and very weak in terms of ways in ways that will have great political consequences.
The most important one being jobs.
Now our job numbers are much worse than the numbers that you get from the federal government.
The eight point 2% in no way represents the real story of unemployment in this country.
Or under employment in this country -- broader measure it usually is right now looks like it's sitting just under fifteen per yes but if you add to that the number of people who've.
Left the labor force Europe to 18% but there are other things that are involved.
Most of the jobs that are being created now are.
Part time jobs 50% of the jobs are part time job what does that mean companies don't want on -- cake.
The both the medical costs in the medical payments and all the other retirement -- they would rather have otherwise have to -- How to we inspire.
Big business and small business.
To do better in terms of compensation.
Because Henry Ford -- -- hundred years ago.
The people can't buy the cars that are being made by one of his -- if he isn't paying a living wage.
Well I think it -- you know I think in the private sector workers are being paid a living wage even though it could be better in the public sector however.
Which is being paid for by the private sector the public sector workers who work frankly much less hard in the private sector workers on balance.
Our are saying what we're paying for this this is ridiculous.
I mean we have to work and where can work -- that these people can retire much earlier of much higher pension benefits and health care benefits that's just not gonna continue anymore.
Our next conversation will take -- is a living wage and why this living wages you referred to refer.
Other private sector has been basically stagnant for thirty years of -- country.
Or it's always good to talk -- can actually -- on -- -- historic day after.
