Should the federal gov't bailout the states that are basically bankrupt?

[busybee01]

The latest COVID Relief Bill is stalled in Congress , and one big reason why is that the democrats what to include approx $915 billion in aid to the states, but the republicans only want to give approx $150 billion, and so far neither side is budging. Meanwhile the people and families that really need the help aren't getting it, but that ain't the focus of this tread. Essentially the issue in this thread is in the thread title: should the federal gov't bailout the states?

The essentials of the concept of federalism as practiced in this country is that the federal gov't is supposed to tend to it's own business, which are those functions listed in the Constitution. Supposedly the functions that should be performed at the national level that the states, counties, and cities aren't really equipped for, such as foreign affairs, national defense, etc. Basically if a function doesn't need to be handled at the federal level then it should fall on the individual states to do what they need to do and tailor it to their specific requirements. The federal gov't is not supposed to tell them what to do, but the states have the authority to tax their residents as they see fit to pay for whatever need to be done.

Great - except for one problem: what if the states just can't pay for what needs to be done? What if the states are mismanaged or they overspend? Should the federal gov't bail them out of their fiscal hole? If they do, then would the states change their proligate ways? And then be back in a few years asking for more bailouts?

What if a problem like the Coronavirus comes along and acerbates the existing fiscal problem? Does that change the calculus?

Consider this: as of now, I believe states do not have the option to declare bankruptcy, congress would have to pass a law to allow that. That doesn't make a lot of sense to me, but whatev. Te status quo with respect to the bankrupt or early bankrupt states is unsustainable; I don't see any alternative to forcing them to deal with their own problems, but possibly they need the bankruptcy option as leverage to get deals and compromises done.

I cannot support a bailout for the cities and states. They've got to find their own solutions IMHO. The federal gov't should give them the bankruptcy option, and any other tools that make fiscal sense. But not a bailout.

The states were not mismanaged. Nearly every state was solvent and had money in the bank. However the coronavirus has destroyed state and local government revenue bases. Larry Hogan is a Republican and supports providing state aid. A bill sponsored by 2 Republicans also would give states aid. This is not a bailout. What we are talking about is replacing tax revenues that have been lost.
Bankruptcy is crazy.

Also Florida's REPUBLICAN Governor has asked the federal government for help. I suppose Florida is mismanaged as well.

 

[Remodeling Maidiac]

No

Our taxes are intended for federal purposes not a slush fund for individual states.

 

[busybee01]

No let those Blue States get themselves out of the hole that their Communist policies and Covid 19 authoritarianism got them into

Florida has Communist policies? Florida is run by Republicans.

 

[Dick Foster]

The Federal government should no bailout mismanaged states-----they should send in prosecutors to file criminal charges against those charged with managing the states monies and who are mismanaging

That is the key
It is the Federal Government carrying $30 trillion in debt. They mismanage, they just borrow more money.

The States are not allowed to carry a debt. They are the ones with a balanced budget. This is a unique circumstance. The states are in debt through no fault of their own.

We have no trouble bailing out other countries but tell states to go fuk themselves

Are you doing drugs or are you simply that stupid?

 

[Rambunctious]

Some relief may be needed to them...but after they go bankrupt...so they can learn from it and not always expect to be bailed out without repercussions...like at the ballot box....after the bankruptcy let the people change their state leadership from the angry children they have now to responsible law enforcing adults.........

 

[Claudette]

Hell the fuck NO.

 

[esalla]

The latest COVID Relief Bill is stalled in Congress , and one big reason why is that the democrats what to include approx $915 billion in aid to the states, but the republicans only want to give approx $150 billion, and so far neither side is budging. Meanwhile the people and families that really need the help aren't getting it, but that ain't the focus of this tread. Essentially the issue in this thread is in the thread title: should the federal gov't bailout the states?

The essentials of the concept of federalism as practiced in this country is that the federal gov't is supposed to tend to it's own business, which are those functions listed in the Constitution. Supposedly the functions that should be performed at the national level that the states, counties, and cities aren't really equipped for, such as foreign affairs, national defense, etc. Basically if a function doesn't need to be handled at the federal level then it should fall on the individual states to do what they need to do and tailor it to their specific requirements. The federal gov't is not supposed to tell them what to do, but the states have the authority to tax their residents as they see fit to pay for whatever need to be done.

Great - except for one problem: what if the states just can't pay for what needs to be done? What if the states are mismanaged or they overspend? Should the federal gov't bail them out of their fiscal hole? If they do, then would the states change their proligate ways? And then be back in a few years asking for more bailouts?

What if a problem like the Coronavirus comes along and acerbates the existing fiscal problem? Does that change the calculus?

Consider this: as of now, I believe states do not have the option to declare bankruptcy, congress would have to pass a law to allow that. That doesn't make a lot of sense to me, but whatev. Te status quo with respect to the bankrupt or early bankrupt states is unsustainable; I don't see any alternative to forcing them to deal with their own problems, but possibly they need the bankruptcy option as leverage to get deals and compromises done.

I cannot support a bailout for the cities and states. They've got to find their own solutions IMHO. The federal gov't should give them the bankruptcy option, and any other tools that make fiscal sense. But not a bailout.

Nope

 

[rightwinger]

The Federal government should no bailout mismanaged states-----they should send in prosecutors to file criminal charges against those charged with managing the states monies and who are mismanaging

That is the key
It is the Federal Government carrying $30 trillion in debt. They mismanage, they just borrow more money.

The States are not allowed to carry a debt. They are the ones with a balanced budget. This is a unique circumstance. The states are in debt through no fault of their own.

We have no trouble bailing out other countries but tell states to go fuk themselves

Are you doing drugs or are you simply that stupid?

Link

 

[Staidhup]

Cities and states just sell bonds, increase taxes in the attempt to cover the shortfall so yes they don’t carry a deficit running forward. So What do you have..... gross fiscal mismanagement resulting from the actions and policy decisions of the individual’s elected to serve in state, municipal, and city government. The states and cities in question were a fiscal mess long before Wuhan.
As someone who pays federal and state taxes I vehemently reject the notion that the government should assume financial responsibility and bail their liberal pathetic asses out. The country is already a fiscal and monetary mess now you propose we just print more money and sell T Bills and notes to China and the Social Security Administration, are you for real or just delusional?