There are fiscal cliffs at every level of government, and it doesn’t help that states and many municipalities cannot legally go bankrupt.
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In a 2011 op-ed for the LA Times, Newt Gingrich and Jeb Bush defended the idea of municipal bankruptcy and argued for a new chapter in the federal code to allow states to go bankrupt:
When California refused to bail out Orange County, the county entered bankruptcy and emerged within 18 months. Within three years, the county returned to an investment grade rating, and it repaid 100% of the principal of the vast majority of its investors by 2000 without raising taxes … The lesson is that voluntary bankruptcy offers taxpayers the option to restructure state finances responsibly to achieve long-term fiscal health…
Giving states the federal solution of bankruptcy could push those that up till now have put off their fiscal nightmares to face facts. Chapter 9 municipal bankruptcy has the same potential on the local level—if only states that bar the process would give mayors and city managers the option.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?