Saturday, January 15, 2011

Cities, Counties & States Should File Bankrupcy

Cities, Counties and States with huge deficit spending and pension liability should file bankruptcy rather than raise taxes, which would retard economic growth and kill jobs. This may require an act of Congress related to the states; but cities and counties have filed bankrupcy in the past, as a last resort and it worked just fine. These government entities are facing more than $2.5 Trillion of pension liability that is unsustainable. Bankruptcy would allow for abrogation of public employee union contracts, which is the only way to bring expenditures in line with current tax revenues.

This really needs to happen in states like California, Illinois, New York and New Jersey though there are probably other states, as well, where bankruptcy is appropriate and the only logical remedy to their financial mess. Over the years many cities, counties and states have agreed to union employee compensation and benefits far above what is typical in the private sector. Bankruptcy would not only allow for dealing with this problem, it would also allow for elimination of many government departments that are redundent and lay off of thousands of government employees. Clearly, government at all levels is out of control, which is the reason we have a $14 Trillion National Debt and many states simply cannot continue business as usual.

Most important, there should be no federal bail out of any state, or local government that would only add to our National Debt. The rubber has hit the road. It is time to cut off the arm with the cancer to save the body. In addition, going forward, collective bargaining and strikes by government employees should be outlawed along with political donations by public employee unions that are corrupting our entire system of government. It is a huge conflict of interest for politicians of any party to take donations from public employee unions when those same elected officials must then approve compensation and benefits for public employees. Negotiations with Unions, if they happen at all, should be handled by Civil Service Commissions composed of retired businessmen and women with experience in the private sector to keep these public employee compensation and benefits packages consistent with what is common in the private sector. This is only common sense.

Of course, Socialists in government will never support this common sense plan because they are owned, lock, stock and barrel by the public employee unions, which is one more reason we must sweep them out of office in 2012 and 2014. If we continue business as usual, it will bankrupt our country. As such, we must elect Conservatives in 2012 and 2014 that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation. This is the platform supported by the majority of the American people and the only way to restore economic growth and jobs in our country. Clearly, dealing with the public employee unions must occur to prevent the bankruptcy of our country.

Most important, we must elect Conservatives who will adhere to the Constitution, as written by our Founding Fathers, not as contrived by the left wing media, Socialists in the last 98 years, our current, or former Presidents, Congresses, or the Courts. We must take back our country in 2012 and 2014. We can do it. We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.

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