Newt: Let States File Bankruptcy

In Pensions & Investments Online, Newt Gingrich takes the precious "state's rights" agenda to a new level, advocating that states be given the option of bankruptcy to void their committments.



According to a transcript of the speech on Mr. Gingrich's website, newt.org, he said: “I ... hope the House Republicans are going to move a bill in the first month or so of their tenure to create a venue for state bankruptcy"

Pensions & Investments, hmmm, why would an investment newletter support bankruptcy of state governments? Because the state employees with canceled pensions would then become customers of the financial advisors insurance brokers salesmen who subscribe to P&I.

When an industry newsletter pitches a favorite concept, you can tell the depth of its support by looking to see who's the first authority the writer presents to establish the credibility of the pitch. In this case, Newt's back is covered by Grover Norquist, of "starve the beast" fame. I guess Ronald Reagan wasn't available.

It's a real statement of how bankruptcy has become a mainstream business technique for ignoring valid contracts and breaking unions, and shows how much Republicans have gone in the tank for industry. If contracts become inconvenient, let's just cancel them and walk away, especially if you've already extracted your side of the value proposition.

Of course, this tendency to jettison inconvenient obligations comes as no surprise to those mindful of Mr. Gingrich's digamy (oops) trigamy. Newt's a funny person to be preaching in public, lecturing about responsibility, and calling for a return to moral values in government.

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Click here for a previous entry re Newt Gingrich's future visions.