That’s the view of the fiscally conservative Illinois Policy Institute.
After itemizing the long list financial problems of the woe-be-gotten, “failed state” of Illinois, the Institute concludes:
It has taken Illinois’ state and local governments half a century to accumulate unsustainable levels of debt and unfunded liabilities. Today, it is virtually inconceivable the elected officials in Illinois will be able to meet these financial obligations. Illinois cannot reverse 50 years of deterioration in dynamic credence capital by simply proposing a spending cap that will never be enacted, let alone be enforced.
Unfortunately, the best hope for a failed state such as Illinois is to let the state go bankrupt. With bankruptcy and a no-bailout rule in place, elected officials would again have an incentive to enact n effective fiscal rules and pursue sustainable fiscal policy. Whether or not the judicial system could strengthen bankruptcy law and enact a no-bailout principle is an open question.
In other words, the people we elected to run Illinois are incapable, not just unwilling, to solve Illinois’ deeply imbedded problems. This depressing thought might give you a headache, but the raw truth is painful.
My earlier posts on Illinois bankruptcy:
Here’s how to subscribe to the Barbershop so that you’ll be notified when I post: Type your email address in the box and click the “create subscription” button. My list is completely spam free, and you can opt out at any time.