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We Are in For a Fight to Balance the Government Books; Interesting Article by Jonah Goldberg in the L.A. Times

By Joseph McDaniel, Esq.

It will be interesting to see how the fight to balance the books for the States and the United States works out.

We all have a stake in it, because when States become insolvent, that's a bad thing; ditto the Federal Government.

Some folks suggest that States be permitted to file Bankruptcy, which is Jake by me. Or they can raise their taxes, which Illinois has done to the tune of 66%, but that's probably a bad thing for Illinois. Only time will tell.

Then there are folks who say that States can balance the books by cutting spending, as Florida may do.

The beauty of having States is watching experiments with different approaches, and seeing what works best in the long run.

Because States, like any other business, can stay in business by making (taxing) more, spending less, or borrowing to cover a shortfall, and those are the three options. Period. Unless you count bailouts, which are unpopular this month.

If States are going to spend less, which is just one option, after all, they'll probably wind up arm-wrestling with unions. Some people side with unions, others against 'em.

I don't have a dog in this fight; the American Bar Association already sold out lawyers by permitting the outsourcing of legal work to Indian Lawyers, who are very smart indeed.

And while I love the television show "Outsourced", it makes me sad when lawyers get pushed off their high-rises.

Note that the Federal Government can always solve the economic problems facing the United States by printing money in gigantic amounts; that solution was used in Zimbabwe, and I believe it worked very well. At least according to CNN World.

But he who lives longest sees the most; and I'll be interested in seeing what the future of the United States economy holds.

And I hope that fewer folks in Phoenix, and elsewhere in Arizona, need to file bankruptcy; it's a lot less fun than you might think, although when you gotta, you gotta.

Full post as published by Arizona Bankruptcy Attorney Blog on February 22, 2011 (boomark / email).