RANT: Bankruptcy for States

http://www.dickmorris.com/blog/smash-the-union-thug-ocracy/

SMASH THE UNION THUG-OCRACY
By Dick Morris And Eileen McGann
11.8.2010

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One of the first orders of business to come up in the new Republican-controlled House of Representatives will be the demand for bailouts of states where expenditures have been especially profligate – California, New York, Michigan, Illinois, and Connecticut. Throughout 2009 and 2010, these states governments have stayed above water by repeated infusions of federal cash. These one-shot stimulus payments must be repeated each year. They are all non-recurring expenditures requiring separate annual appropriations.
The Republican House must say no and hold the line, stopping this raid on the federal Treasury. The cry in the caucus must ring loud: “No More Bailouts!”
But, as the Republicans demand fiscal discipline and refuse to make the citizens of the other, more responsible states subsidize the wayward finances of California and New York, we need to focus on the union power that has forced states, localities, and school boards to raise taxes, borrow money, and – ultimately – to depend on federal bailouts.

These unions have forced contracts on their states, localities, and school boards which provide for ever higher wages, benefits, and pensions. Even now, teachers are on strike in a suburb of Pittsburgh because they feel a 4.5% annual wage increase is inadequate!

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This should be interesting.

One thing in a “corporate bankruptcy” is that past contracts are broken. Everyone gets a haircut. Pensions get dumped on the Federal Gooferment at a greatly reduced level; ask the Delta pilots about that.

It will be interesting.

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