What's more, despite the bankruptcy declarations, union pensions probably won't be touched. Those are contracts that were signed, sealed and delivered long ago; the benefits have already begun to vest. In San Bernardino, the city has already declared it won't touch those massive retirement benefits out of fear of legal action.
So what are these cities to do? They become Detroit. Forced to pay these pensions, they raise taxes; all those who make money flee; those who are left have less services and pay more into the system. This is what liberalism wreaks on cities. No city has ever gone bankrupt from spending too little cash.
California has yet to learn its lesson, however. Gov. Jerry Brown plans to spend more and more money on the unions, and then ask Californians to tax themselves at a higher rate to pay for it. There's only one problem for the governor: It's against the law to compel the earners to stay in the state. And they'll get out as soon as humanly possible.
California is going the way of Stockton and San Bernardino. The only difference is that when the state does go bankrupt, the federal government will undoubtedly try to step in. But what happens when the federal government goes bankrupt for pursuing Californian policies?
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