Most states have constitutions that require a balanced budget. This, of course, is nuts. In bad times you pump money into the economy; in good times you save. Right now the federal government is running huge deficits in an effort to stimulate the economy. States can’t do that, which is why they need federal help–the kind that big companies are getting.
Along comes Moscow Mitch, who has suggested Republicans will oppose aid to states, instead telling them to consider bankruptcy. In an interview with a conservative radio host, McConnell said, “There’s not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations.”
Where this is leading became clear in a news release by his staff which quoted McConnell’s statement under the heading “Stopping Blue State Bailouts.” Illinois, California, and New York are in his sights.
I do like what Gov. Cuomo said about this: “One of the saddest, really dumb comments of all time.”
See Carl Hulse, “McConnell Wants States To Consider Bankruptcy,” New York Times, (Apr. 23, 2020), p. A14.
He should talk about future generations when we just need to look at the huge tax package the GOP passed a few years ago and create loss revenue needed to balance the budget.
ReplyDeleteI don't think Congress is really looking at the future. At least the Republicans aren't. If they were, they'd worry more about global warming.
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