The Bankruptcy of American Colony/States
We all know that Washington’s government is broke. But nearly every colony/state of the Union is also in desperate financial trouble. They have nearly all spent profligately. But their underfunded pension obligations are going to sink them aside from too much spending. And Federal law doesn’t permit colony/states to declare bankruptcy.Mr. Longcore also has a link to The Daily Beast has an article about colony/state bankruptcy that he strongly recommends, to show how bad your state is doing. It measures relative bankruptcy by the ratio between state debt and state Gross Domestic Product. By that measure, Ohio is doing relatively well. Despite our $8 billion budget deficit, which The Daily Beast understates as $3 billion, our $27 billion of state debt against $471.3 billion of Gross Domestic Product (both 2009 figures) gives us a debt/GDP ratio of 5.93%, ranking us 44th of the 50 states in debt burden.* Our unfunded pension and retirement health care liabilities total $46.5 billion.
I just want to point out that if a colony/state seceded from the Union to become a nation once again, it would likely shed enough Federal debt and Federally-mandated spending that it could balance its budget once again. And now the new nation would not be subject to Federal bankruptcy laws. That doesn’t mean it should stiff its creditors, but it could facilitate restructuring and payment of its obligations.
Also remember the old saying…”The thinking that got us here will not get us where we want to go.” There will need to be an entirely new group of leaders who move away from the republic to secession and new nationhood.
Some people ask why we would want independence and lose all those federal funds. They are not thinking clearly. All of those federal funds would be available to Ohio government. Well, then, how about the fact Ohio is getting $1.05 from Washington for every dollar it sends there? ** Vermont secessionist Frank Bryan has a good answer for that: "Would you rather have $10,000 to spend any way you want, or $10,500 that you have to spend as I say?" ***
* Rhode Island, with a ratio of 19.19% was first, Nebraska (2.91%) was 50th.
** Tax Foundation "Federal Spending Received per Dollar of Taxes, FY 2005," Federal Fiscal Year 2005 (ending Sept. 30, 2005) is the latest year available.
*** Quoted in Bill Kauffman, Bye Bye Miss American Empire (White River Junction, VT: Chelsea Green Publishing, 2010), p.233, adapted to Ohio's ratio.