Peter Schiff on State Bailouts and the National Debt
Peter Schiff explains the dangers of the federal government bailing out individual states.
If the federal government starts bailing out states, a state would be irresponsible not to be irresponsible. After all, why would you? Just cut taxes and increase spending, because you’re going to get the money from congress, from upstate. And if you’re the one state thats being fiscally responsible, then you’re going be to footing the bill for all the states that aren’t.
The states probably will be bailed out by the federal government. I fear we are entering the decade of irresponsible not to be irresponsible. As we’ve seen in the banking and auto industry and Wall St. bailouts, being irresponsible pays fairly well.
Years ago there was a musical called How to Succeed in Business Without Really Trying. An updated remake could be titled “How to Succeed in Business by Royally Screwing Up.” The story of a window cleaner who purposely hurts himself on the job to get a desk job, and ends up becoming the president of the company. Once president, the former window cleaner could apply the same skills that got him to the top of the company by acquiring huge amounts of debt to eventually get a governmental bailout.
I’ll get started writing the new musical as soon as I can find a government grant for writers. The plan is to never finish writing the musical, because that would defeat the whole purpose by completing the work. It would be irresponsible not to be irresponsible.