The New York Time's Michael Powell has a disturbing story about the fiscal bind of the State of Illinois, where bills the state owes to its agencies, such as universities, and to private contractors, such as funeral directors who bury the indigent, are many months behind. The State's collapse is damaging the private economy and exacerbating the already high (11 percent) unemployment rate.
The policy under the Democrats has not been "tax and spend," but even worse, "borrow and spend." Today, the state deficit is $12 billion, equal to about half the state budget.
California, New York and other states are in bad trouble, too, but Illinois may be closest to the brink. If it goes over, it could trigger other defaults and help drag down the economy of the country.
Leave a comment