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News Link • Economy - Economics USA

Conservative chorus calling for states’ right to declare bankruptcy

• Rawstory
A chorus of conservative pundits are calling for bankruptcy laws to be changed so that all 50 US state governments might have the chance to restructure their debts, an ability currently limited to corporations, municipal entities, and private citizens. "Many states, including those with the country’s largest population centers, are now on a path to insolvency," 

3 Comments in Response to

Comment by Darryl W. Perry
Entered on:

This is an unusual situation, conservatives and anarchs are in agreement here. However, the conservatives don't go far enough. After any government declares bankruptcy,   it should be abolished. It's the first step towards a stateless society or a return to city-states that would hopefully be run in a voluntaryist fashion.

Comment by Ross Wolf
Entered on:

Greatly adding to the economic collapse of local governments and expected defaults on Municipal Bonds, many Municipal Employees are paid twice that of Americans working similar positions in the private sector. Local and State Government employees hold taxpayers hostage to be taxed into oblivion paying humongous retirement plans approved during an artificial boom economy. In part due to union influence, state and local governments are moving the direction that collapsed the USSR—huge unaffordable bureaucracies; imploding numbers of government employees. Despite a relentless horrific recession, Federal, State and Local Government Employees continue to receive (unsustainable salaries, benefits; and large pensions) that will bleed Taxpayers dry for decades. Some Unions appear intended to dump on U.S. Taxpayers their obligation to pay its members inflated promised benefits. Meanwhile unions think nothing of spending millions on political campaigns. Taxpayers should demand deep independent audits of certain unions. Both unionized and non-union state/local Government employee salaries and benefits need to be sharply reduced, brought in line with private sector workers. State Legislatures should be introducing legislation to cut back or terminate unsustainable pension and salary plans that hold taxpayers hostage; as Local Governments financially collapse and might be allowed to file bankruptcy, this should be a major issue.

Comment by Joe Tittiger
Entered on:

"the federal law banning state bankruptcies could be on the table."

 Now where in Gods name does the Consitution give the feds the power to limit the states in such a way?

Sounds criminal and illigitimate authority as usual....

 Please fill me in someone as I don't see it!



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