I’ve been saying for months we are headed in the direction of Greece, and if we don’t cut back spending and curb the entitlement state, we are headed for a future of riots in the streets over the cuts that must be done to avoid sovereign bankruptcy. Several of you have been calling me crazy – no doubt you will stick your head in the sand and continue to call me crazy.
We are there as of today. In Wisconsin, the governor is trying to pass a budget that will among other things, closes the budget gap, requires public employees to contribute to their benefits package, and limits the public unions collective bargaining right to pay packages only. This is all in an effort to avoid defaulting on the State’s obligations without raising taxes in a way that would destroy the state’s economy. As a result…
- Teachers are on strike refusing to work
- People are protesting in the streets
- Police are looking for democratic lawmakers who are refusing to vote on the measure
- Governor threatens to use National Guard to keep state operations running
Welcome to Europe my friends! Perhaps the tipping point has begun. We are witnessing civil unrest and protest against the idea of living within our means. Apparently those protesting in Wisconsin would rather have their state default on its debt, causing tens of thousands of layoffs, school closings, and public safety disasters, rather than pitch in like the rest of us who do pay for a small amount of the medical and pension benefits we receive.
So if the choices are;
- Massive public sector layoffs and services cuts
- Massive tax increases
- Small increases in the amount of money public employees contribute to their medical and pension benefits
Which would you choose?
Guest Blogger Jeff