State Budgets
Budget shortfalls, city defaults & bankruptcies, potential state bankruptcies means the budgets of individual states will impact the economies of the other states and the federal budget/deficit.

Spendthrift Illinois Races Toward Default

from The Wall Street Journal,

By trying to tax its way out of fiscal disaster, the state makes matters worse. There’s a simple solution.

For 13 years, Puerto Rico has been in a man-made recession aggravated by natural disasters. In 2017 the island territory asked a federal court for bankruptcy protection, but it’s still grappling with $70 billion in debt. Puerto Rico’s fiscal fiasco offers a glimpse of what the future could hold for Illinois if it doesn’t deal with its own self-imposed economic disaster.

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