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[+]Kromulent0 points5 points5 points
ago
(edited ago)
[–]Kromulent0 points
5 points
5 points
(+5|-0)
ago
(edited ago)
It's complicated, and some of it is legally unknown; the various laws that apply are not consistent and many have never really been tested.
As a practical matter, the existing debts may never be collected, but the much bigger problem is that nobody is going to load additional money to the state once that happens. At that point it's a choice between an endless bailout (and the associated moral hazard) or an actual fiscal collapse, which is really ugly and which does far more harm to innocent people than the unpaid debts themselves.
Ask Illinois. They spent their lottery pot and couldn't afford to pay out to winners. Still can't, but they still sell tickets and keep spending the money anyway.
They raise taxes in the form of bonds and then continue on their destructive path of spend and waste.
A few surgically exercised executions of state and government officials would fix this problem. It's amazing how people manage to do the right and honest thing when there are consequences.
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[–] Kromulent 0 points 5 points 5 points (+5|-0) ago (edited ago)
It's complicated, and some of it is legally unknown; the various laws that apply are not consistent and many have never really been tested.
As a practical matter, the existing debts may never be collected, but the much bigger problem is that nobody is going to load additional money to the state once that happens. At that point it's a choice between an endless bailout (and the associated moral hazard) or an actual fiscal collapse, which is really ugly and which does far more harm to innocent people than the unpaid debts themselves.
[–] Sullysq 0 points 3 points 3 points (+3|-0) ago
Ask Illinois. They spent their lottery pot and couldn't afford to pay out to winners. Still can't, but they still sell tickets and keep spending the money anyway.
[–] 10514701? 0 points 2 points 2 points (+2|-0) ago
No... their taxes just go up.
[–] dan_k 0 points 1 point 1 point (+1|-0) ago
Along with the fee's and fines.
[–] R34p_Th3_Wh0r1w1nd 0 points 2 points 2 points (+2|-0) ago
Could be. But good luck getting it done. I doubt the cops will back you.
[–] Wargasm [S] 0 points 1 point 1 point (+1|-0) ago
That'd be rich.
"You can either help me take the desks from the court house,
or I'll pull the truck around to the police station and help myself to some computers.
Your call chief."
[–] KikeFree 0 points 3 points 3 points (+3|-0) ago
Their armory will have more valuable stuff in it.
[–] [deleted] 0 points 2 points 2 points (+2|-0) ago
[–] SirDigbyChikenCaesar 0 points 2 points 2 points (+2|-0) ago
And a bailout from the Feds.
[–] lettersofmarque 0 points 1 point 1 point (+1|-0) ago
We just take more of your money. Sincerely, the state of Illinois.
[–] Goathole 0 points 1 point 1 point (+1|-0) ago
They raise taxes in the form of bonds and then continue on their destructive path of spend and waste.
A few surgically exercised executions of state and government officials would fix this problem. It's amazing how people manage to do the right and honest thing when there are consequences.
[–] BlancoCanyon 0 points 1 point 1 point (+1|-0) ago
A state hasn't gone bankrupt yet, but cities have. Similar results, I'd assume.
https://en.wikipedia.org/wiki/Detroit_bankruptcy
Creditors will be paid pennies on the dollar.