I suggested in a previous blog that a major solution to the various state budget problems could be resolved with a change in the bankruptcy law, which is federal. State governments and agencies could abrogate onerous contracts which bankrupt them, were they enabled by law.
Abusive union wage and pension contracts could then be adjusted, Of course, politicians in those states have a chance to survive budget deficits without bankruptcy by simply voluntarily saying no to outrageous union demands. But then too many will lose union election campaign contributions.
They will have to be forced to be budget-compliant, and only bankruptcy is the answer.
No comments:
Post a Comment