Republican attempts to allow states to declare bankruptcy are about one thing and one thing only--breaking public sector unions. For Newt Gingrich, this is a zero-sum game. As Andrew Leonard writes in this nice article at Slate:
The purpose of state bankruptcy is to break government employee unions. House Republicans win. Labor loses.Even if this passes the House, a Democratic Senate and president have to pass and sign as well. And if they do, labor should sit out the 2012 election.