As I’ve said in the past, if the federal government bails out a state, it should be under the conditions that it revert to territory status until it has demonstrated fiscal responsibility over a long period of time. And in the case of California, it should not be allowed to come back in as a single state. If this requires a constitutional amendment, I’ll bet you could slam one through enough of the more fiscally prudent states pretty quickly.
7 thoughts on “The Pension Crisis”
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I believe a “not” has gone missing.
Yes, fixed it, thanks.
This is pretty funny: your blog post links to an Instapundit post, which links to an American Interest post, which links to a Financial Times article, which is behind a paywall. Well, I tried.
The FT’s piece would have taken you to Kevin Bacon’s fanclub website.
California, and a few other high population States, really needs to be broken up.
I would recommend some caution. In the past, the overthrow of a large state, the Free State of Prussia was a key step in the dissolution of the Wiemar Republic and the rise of the Nazis. If a number of such US states become wards of the federal government, then where is the state-side counterbalance to federal power?
I didn’t say they’d be wards of the federal government. It would be a one-shot bail out, then they become territories, on their own, and earn their way back to statehood.