David Dayen on State Government Finance

David Dayen (At VS on foreclosure fraud and with mcjoan) talks with Sam Seder on Countdown, guest-hosting for KO. David talks about the collapse of state finances, particularly states like California and Illinois that were in trouble before the Great Recession because they were not really covering their annual current expenditures, and future obligations like debt issuance and pension liabilities.  The Recession, with its extended period of extreme unemployment has decimated tax collections,and left some states and municipalities at risk of default.

Naturally,  rather than propose long overdue tax increases to address shortfalls, governors, especially Republican governors, are targeting unions and pension funds. As David points out in the clip, it’s interesting that contracts for banks, and their bankster employers are apparently inviolable, while union contracts and pension obligations are, as they say, on the table.

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