After the Goose is Dead, Then What?

by Richard H. Frank

The lesson of Aesop’s Fable about the goose that laid the golden egg seems of no value to the Government employee unions in Wisconsin, New Jersey and Ohio, let alone those states saddled with other than “right to work” laws.  At least private sector businesses, subject to collective bargaining union contracts,  have the ability to save themselves from extinction through bankruptcy law and the right to renegotiate contracts.

This was the case up until the Obama Administration’s takeover of General Motors and Chrysler forced bankruptcy and nationalization.  Payback was to the unions in the form of ownership and subverted the principles behind collective bargaining for these giant companies.  The process resulted in promises made to shareholders, bondholders, salaried retirees and the community at large could not and were not  honored.

Listening to  Barack Obama, one would conclude that state and local governments should not be able to control their fiscal destiny by legislating changes to government union agreements, but are mandated to preserve the status quo and find other means to balance their budgets.

As with the goose that laid a golden egg, one daily, there is a limit to the number of eggs the goose is capable of producing.  However, local and state governments are borrow against eggs yet to be laid by “Mother Goose” until the deficit is insurmountable and unsustainable.

Unlike the farmer and his wife in Aesop’s Fable, state and local governments cannot declare bankruptcy, which would equate to stopping spending beyond the capacity of poor “Mother Goose” to lay eggs and thus like the farmer will end up slaughtering the goose.  In the case of Wisconsin, it will result in the eventual layoff of thousands of government workers.

We may not recognize it but the “Golden Goose” in American has been dead for decades.  Irresponsible, unrestrained government spending over the past two years under Barack Obama has exceeded the sum total of every previous Administration in America.  The national debt has soared to over $14 Trillion and the proposed 2012 Federal Budget of $3.7 trillion adds an additional $1.6 trillion to the deficit.

Over the past decade America has seen uncontrolled government spending, mortgaging our children’s futures in excess of $43,000 for each and every citizen alive now, or to be born in the future.

Those of us that have studied history have seen the results of mis-managed fiscal policy destroy the economies of countries including Argentina, Brazil, Mexico, all of which have defaulted on their soaring debts created through unsustainable entitlement programs.  Most recently we see our future in Greece, Ireland and Spain unfolding before our very eyes and yet government is reluctant to take issue and address changes in these unsustainable entitlement programs for fear of political blowback.

The goose is dead; what next?  You really don’t want to know.  Continuing unemployment, hyperinflation and devaluation of our currency and finally the collapse of the  American economy.

Wake up America!  Government, our elected Representatives, must make the hard decisions and no longer “kick the can” down the road for future generations to deal with.  Like every American family, government must tighten their belt and live within their means.  States like Wisconsin, Ohio and New Jersey are showing the way and need our support if this Republic, the United State of America, is to survive.