No, that’s not the new Bruce Willis movie. That’s the spectacle we’re witnessing now of general strikes in Greece in response to proposed austerity measures designed to keep the country from the fiscal abyss — and maybe dragging down other European Union members with it. But Americans shouldn’t be too smug. Despite some very substantial differences in political culture and economic vitality, the United States is showing early signs of the mass hysteria, the widespread delirium tremens that sets in when the omni-competent welfare state begins to renege on its promises. If the root problems underlying the Greek debacle include reckless spending, a bloated and self serving bureaucracy, a heavy tax burden, and a complete political failure to face up to reality, then how is California any different in this respect?
Writing in the February issue of Reason magazine, Steven Greenhut offers a lengthy and detailed account of the rapid expansion of the California state payroll and how elected officials and public employee unions work hand in glove to make themselves very comfortable at the expense of taxpayers:
People who are supposed to serve the public have become a privileged elite that exploits political power for financial gain and special perks. Because of its political power, this interest group has rigged the game so there are few meaningful checks on its demands. Government employees now receive far higher pay, benefits, and pensions than the vast majority of Americans working in the private sector. Even when they are incompetent or abusive, they can be fired only after a long process and only for the most grievous offenses.
Too strong? Well, look at where it’s led the Golden State. Here’s California Attorney General Jerry Brown earlier this month: “California is deeply in debt. You could say that it’s bankrupt.” Is it one step closer to insolvency with this week’s postponement of a bond sale? (more…)