Newt Gingrich and Jeb Bush are right about state bankruptcy as one way to deal with rapacious government unions.
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The federal law would provide that a state’s bankruptcy could be triggered by a filing initiated by the state’s governor, or by the state legislature passing the plan of reorganization, which would automatically send it to the court for approval, or by the people adopting the plan of reorganization by citizen initiative, automatically sending it to the court as well.
If this were the law, Governor Walker in Wisconsin could go ahead and file his reorganization plan with a federal court, without having to wait on corrupt politicians, bought off by their government union political machines, to show up for work. Or citizens in Wisconsin, or in California, could file for an Initiative Referendum on a plan of reorganization devised by the Initiative sponsors themselves.
The Wisconsin Showdown is already spreading across the country to other states. Changing the U.S. Bankruptcy Code to allow for state bankruptcy filings would be a valuable tool to empower taxpayers nationwide to protect themselves.
What Governor Walker is doing in Wisconsin is protecting the interests of working people in the state, who are the ones who must pay the taxes for the lavish pay and benefits of public sector aristocrats, and suffer their own lost jobs and wages resulting from high taxes. Personally, I would like to see every working family making over $100,000 per year, and retiring as millionaires, whether working in the private or public sector. With the right economic policies, that is possible in America within a generation. That, indeed, is what I have devoted my entire life at this point working for. But we are going to fall farther from that goal, rather than grow closer, following the neo-socialist runaway tax, spend, deficit and debt policies advocated by shortsighted, brain dead government unions.