I was appalled to read that 47 out of 50 states are in the red, meaning “broke.” That means
not only is the U.S. government broke but
94 percent of our states are broke, too. If I were one of the three solvent states, Montana, Arkansas or North Dakota, I’d seriously consider seceding from the union before Uncle Sam confiscates my reserve funds.
As any small-business person will tell you, there are two basic things critical to solvency. First, any employer’s largest expense is always employees. Don’t overhire, period. Second, for every $1 worth of income you receive, you must never spend more than 99 cents. Same for families. I am confounded that state and federal government leaders cannot seem to grasp these two simple premises.
Additionally, in most government operations (and many large companies, like the carmakers), there is an elephant whose name is “pensions.” Union pensions are often granted without enough serious managerial contemplation and, in fact, are often not even funded as agreed. But all of a sudden one day, like in California, a bookkeeper mentions that not only has the government overspent by $72 billion, but there is also a
$542 billion unfunded pension debt hanging over their heads.
We have been driven to huge spending excesses by foolish leaders and there is little indication we can recover as states or as a nation. The financial collapse of America is a looming, real possibility.
Robert C. Moorman