We were called "crazy right-wing conspiracy theorists" for even suggesting the idea that someday local, state and federal institutions could go bankrupt. That will never happen. It never could happen. Who would be so irresponsible to let it happen?
Well, it's happening. And we knew it was possible. It didn't take a rocket scientist to see the signs of organizations out of control. Any business person worth their weight in salt (or gold for that matter) could tell you when costs continue to increase year over year faster than the rate of inflation and at a rate that revenue could only hope to see, doom was a certain future.
The U.S. Postal Service looks to default on a $5 billion payment due in just 11 days — August 1, 2012. To make matters worse, there is another $5 billion payment due around September 1st. And guess what? The Post Office doesn't have this cash available to make either. That is what is called default and without a fix, then it becomes bankruptcy — unable to pay creditors. But what in the world costs so much and is due on these dates?
With a little research one learns that both payments are due to retired postal workers. That's right, the Post Office will go bankrupt because it can't pay health insurance and checks to people who no longer work for the post-office. It was a promise that could never be kept. The snow ball was small to start, but now it's at the bottom of the hill ready to crash into the lodge. It's like if you had to continue paying for a mortgage on a home you used to live in but no longer do.
But the Post Office isn't alone — it has company. First Stockton, CA, then Scranton, PA and soon San Bernardino, CA and Compton, CA will all file for bankruptcy. The problem: they don't have the cash to pay retirement benefits. But how could this be? Who would make such demands and then who would agree to those demands. Look no further than Public Employee Unions, Democrats and Liberal Republicans. Public Employee Unions have no concern for the well being of these institutions, as their goal is to transfer as much wealth from the private citizen to the public employee and then into their unions. Liberals from both parties are a player in this game as they approve the salary increases which roll over into what someone will receive when they "retire" and stop providing any sort of service to the government. They are "rewarded" for their loyalty — to the union. Raise taxes on the people, that's fine. Kill businesses and take their wealth, that's fine too. Just make sure the money continues to flow into the government coffers to be distributed to the public unions.
At the end of the Congress' August recess we are likely to hear about emergency bills needing to be passed to save the Post Office. But the reality is, this is not an emergency. It was predictable. It was easy to see, but most kicked the problem down the road for others to deal with. Bailing out the Post Office this time only delays and does not prevent the inevitable. To fix the problem, governments must dismantle the unions that are sucking the citizenry dry through ever increasing fees, levies and taxes.
The Tea Party rose up in 2010 because of this very reason. Now it is time to take action. This November we have an opportunity to continue to elect conservative, fiscally responsible local, state and federal representatives who will take government's spending binge seriously and begin to tackle the problem head on. Otherwise that 500 foot snow ball you suddenly see in the window, well you better.... too late.