Labor Unions, Teachers Unions, Policemen, firemen and Nurses unions will all pull out the stops to elect their Democrats this Nov. Why? Because these people plus all government workers have a pension and health care the average American would die for. (and probably will). When you can retire then collect a pension paying you more that you made while teaching and you have in addition a Cadillac health plan you have a pension to die for. The problem is these outrageous pensions are breaking the states. There is simply not enough revenue to maintain this extravagance. In addition to this States and municipalities across the country are one event away from bankruptcy. The result of years of piling up spending commitments no matter the revenue base.
The next stop is Washington where Barney Frank has a proposal to provide a federal guarantee for local debt. This is why I entitled this blog the way I did.
Look for this to be a priority if Democrats hold the House and Senate this year as they seek to reward public unions for saving the day with their campaign cash of over $100 million.
Putting the U.S. taxpayers on the hook for city debt would only provide local politicians with another excuse to avoid the cutbacks, furloughs and reforms necessary to balance their ledgers. Whatever its short-term pain, bankruptcy is the only disicipline that will break the addiction.
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