States can’t legally declare bankruptcy - not sure if cities can not either.
Anyway - we NEED government bankruptcy / default.
There will be no change otherwise.
“States can’t legally declare bankruptcy - not sure if cities can not either.”
Cities can and do declare bankruptcy. We’ve had several major cities here in CA go under. And they have had Bankruptcy Court sanctions that would have allowed them to give union contracts and PE pensions haircuts, but it each case thus far, they have somehow managed to exit bankruptcy without so doing. Stockton and Vallejo are examples. The open question is did they really fix their financial problems, or once again find a way to kick the can down the road? My bet is that they didn’t really fix anything, and that they will be back in bankruptcy again very soon, because in both cases, the city governments took the side of their employees instead of their taxpayers. Until governments become instruments to serve the taxpayers at reasonable costs instead of being jobs programs for “union DemoRATS,” there will be no real solutions.