New Jersey and Greece, Perfect Together

There is a glaring similarity between the financial crisis in Greece and the crisis in several states in this country. Both belong to a larger union which have a single currency. Both are unable to print money. Both have borrowed way too much to fund their spending. Public employment is bloated with too many employees with unrealistic salaries, undeliverable benefits, and retirement packages which are completely out of line with the private sector.

In both situations they are are seeking the other more responsible states/countries in the union to bail them out. In the case of the US the Obama administration is funding bankrupt states with stimulus funds to prop up their failed bloated governments. This money is raised by taxation of all of the states including those that have made fiscally responsible choices. Additionally, there is no demand to control spending and effectively encourages the failed state's irresponsible behavior as a bailout is always around the corner.

In the case of Greece the European Union is offering a bailout. These funds are obtained from other countries in the union including Spain which itself is on the verge of needing a bailout. In addition the International Monetary Fund is offering a bailout and the irony is the IMF is funded by countries who themselves are running ridiculous deficits. The US would contribute to the IMF bailout while it is has a deficit of 12 trillion dollars. The American taxpayer will effectively be giving their money to some Greek public worker so he/she can have his promised benefits. Ridiculous.

And finally, both are having a very difficult time trying to institute changes in their public work force in order to be fiscally responsible. As Greece attempts to decrease its expenditures and cut the public workforce it is met with violent riots. In New Jersey when the new governor tries to bring the budget into balance and cut expenses he is met with radical protests, threats and demands that taxes be increased to cover the public jobs.

Taxes can no longer be increased to cover government runaway spending. The only option is to cut expenses and both the Greek and New Jersey public worker will have to suffer for the mistakes made by its government that expanded beyond what was realistic. It is not the fault of the current government trying to cut costs or the fault of the public employee who obtained the job. It is the fault of the government that was in place when the expansion took place and made promises to people that could not be fulfilled.

Ultimately, it is the idea of big government that has brought this pain to so many. It is a fault of the democratic system where government can spend money it doesn't have in order to garner votes to maintain power. This is happening all over the world. It will be very interesting to follow how the financial situations of Greece, New Jersey and elsewhere get resolved.