State Bailouts

In addition to the proposed GM bailout, several states have requested federal bailouts as well. This is a very dangerous proposition as a federal bailout of a particular state would jeopardize the entire Constitutional system. The American Federal government system depends upon separate levels of government with all power not delegated to the National government being reserved to the States or the People. If the National government agrees to transfer funds to a particular State, it will do so only when certain conditions are met by that State. The State, therefore, gives up its sovereignty to the National government. This undermines the basis for our whole system of Government by creating the all-powerful central state.

That is not a precedent I want to set.