Bankruptcy, something we face personally, I had to declare such a thing in the past when I was injured, saddled with medical debts, and was laid up with a broken back and no way to get up and remedy this. I used my money as long as I could to survive but then realized the bills were more then my financial outlook could ever hope to cover, so I did what many Americans do, I filed a Chapter 7.
We have seen businesses do this, many times due to a downturn in market forces, other times because of foolish choices, bad decisions don’t have the resources to cover their many debts; they too declared bankruptcy.
Cities and counties were facing the same; this was due to bad choices, corrupt officials, wasteful spending, promises that can’t be met, they too have had to face their day in court and go through their bankruptcy.
Many states that did not put away for such an event as we are facing now are facing financial ruin. Others have chosen for years to spend on what they see as a progressive social need, to give free tuition to illegals, give them free medical, even when they are not giving the same to their citizens. But now, due to this type of spending they have done, promises they have made, they are running to the federal government with their hands out, demanding the federal government bail them out.
McConnell – Let Them Declare Bankruptcy
McConnel yesterday said enough was enough, if states did not make the needed adjustments that were required, spent their money foolishly, why should the federal government bail them out, thus saddling our children with our foolish debts? Let them declare bankruptcy.
Other states, I am sure, are saying it is about time. When they see their aid diminished because these states that have invested into people other than their citizens, why should they, who did not do this, suffer as all the aid money goes to these states.
What is more, many of these states did not just experience this due to these progressive ideas; they have had government unions demand wages and unsustainable retirement funds. The people negotiating the contracts knew this, their union members knew this, but they wanted a piece of their action now, but now, the Pied Piper has come calling, it is time to pay the dues, they are screaming as they realize it is their pension that is up in the air.
Here is the problem with this, I don’t like to see people that gave a life of service to suffer. Still, I also am a realist; if you sat and supported this type of strong-arm tactics with the government, now you are looking at your pension being placed on the auction table, you knew what you were doing. I have a hard time feeling too much sympathy that now you are being forced to pay; after all, you knowingly took advantage of the state and all the people living there.
The response to this is predictable, states like New York, Illinois, California, and other deeply held liberal states quickly responded, governors like Cuomo are outraged, how dare the government not bail out the mess they have put themselves in.
The remarks drew a caustic reaction from Gov. Andrew M. Cuomo of New York, who called the bankruptcy suggestion “one of the saddest, really dumb comments of all time.”
“OK, let’s have all the states declare bankruptcy — that’s the way to bring the national economy back,” he said.
Mr. Cuomo accused Mr. McConnell of hyper-partisanship, criticizing him for distinguishing among states based on their political leanings, rather than “states where people are dying. Why don’t we think about that? Not red and blue. Red, white and blue. They’re just Americans dying.”
There were the predictable responses that firefighters, police, and other essential workers would suffer. Still, like it or not, they were many times part of this negotiating process that put these states in the trouble they are in now, did they think when this came crashing down, they were going to walk away unscathed?
Almost all the states facing deep financial problems right now would have encountered it in a couple of years had this crisis not pushed up the time of the call; it is merely happening a couple of years earlier than expected. Many states, like Illinois, have unsecured pension funds that are impossible for the state to cover, no matter what they do or the money they raise, are the other states supposed to take less so they get bailed out?
California and New York are no better, in California this practice of saddling cities and counties with these type of debts has already brought on a slew of bankruptcies in the state and county level, other cities like Detroit, they have faced this, are now trying to pick themselves up after their debts were negotiated to a manageable level and city leaders, unions and others realize that no longer can they practice holding a community hostage with unfair and unsustainable negotiations.
Should States That Cover Pension Funds Pay For Those That Didn’t?
I live in a state where it was the law that pension funds had to be funded, they could not be drawn off of on a rainy day, should we pay because our next-door neighbor Illinois, in their quest to finance all their progressive programs, dipped in and cleared out their pension funds?
We hear that the people are going to suffer, but I say, “They knew what they were voting for, people for years have warned them of this, but the draw of free money was greater then their common sense, now they want me and you to bail them out, I am not willing to do this.”
I understand we need to keep essential services going, this is the duty of the government, and maybe we should be looking at the federal government taking over control of state police and other emergency services, to fund them while states go through bankruptcy.
I think if they negotiated contracts in bad faith, then they, like everyone else, should find these deals renegotiated until they reach an agreement that is both fair and able to be covered by the state. Because you work for these agencies does not mean you should be given a free pass from bad deals being done in the past.
If states like California, Illinois, and New York are going to find they can no longer finance illegals that are getting free tuition and medical care, oh well, that is what the other states are already doing.
If unions that negotiated their states to the current position they are in finding themselves faced with angry union members who now realize the great deal they negotiated is not able to be fulfilled, that is on them, I don’t feel any need to support their bad choices.