Herbert Stein, President Richard Nixon's chief economic adviser and father of actor Ben Stein ("Ferris Bueller's Day Off"), coined a saying that applies to what ails Michigan. Stein's Law says, "If something cannot go on forever, it will stop." In other words, no one needs to take action; the trend will halt by itself.
Stein's Law poses a challenge for Michigan, where the state's political leaders for too long have avoided making tough and necessary reforms and instead fought to sustain the unsustainable.
An example is the failure to address the out-of-control pension and health care costs of state government, public schools and local governments. These items aren't financially sustainable even in good economic times -- and the state has been stagnating or in recession for almost a decade.
The state's current obligation for health care benefits for state and school employees alone stands at $40 billion. This does not take into account the billions of unfunded pension obligations that the state Constitution protects.
Read more: http://www.detnews.com/article/20100115/OPINION01/1150348/1008/Michigan-must-stop-its-bankrupting-ways#ixzz0cglUx5nl
