What should happen if a state goes bankrupt?

If a state spends itself broke and cannot meet it's obligations and function as a state, what should the response of the rest of the US be? Granted, some of my options would require a Constitutional Amendment, but we would be in uncharted waters and it may be necessary.

Edit: When I say "don't allow representation in Congress", that is until they are solvent and back under self control. Not enough room.

 

Feds take over the state.

 

Havent some cities already been down this road? Havent many large companies been down this road.

And, for that matter hasnt donald trump been down this road multiple times? I suppose we could revoke donalds citzebship until he pays everyone back?

 

I didn’t realize cities or Trump were states. Try to focus. This could actually happen.

 

The bankers take over the state, of course.

 

Declare bankruptcy, liquidate assets and stop giving them loans until they build their credit back up.
Its gonna suck for the citizens, but they let their reps do it.

 

Have that state cut its expenses so that expenses match income.

And by the way, going bankrupt should never happen in a blue, liberal state because everyone agrees that raising taxes on the rich is the answer to a tax shortfall.

 

There's no state in the US that's too big to fail.

Stay out of their problems, and let them figure and plan how they will get respect, legitimacy, and a credit rating back.

Then let them work for it without federal intervention or help.

The newest states have been states for 58 years. With a time base like that there just isn't any justification for going bankrupt.

 

Its the state's problem to solve with their taxpayers and creditors. It will suffer the consequences as their bonds become trash and banks refuse to lend, and they have to negotiate deals with their unions that will pass court muster. Its citizens will have to decide whether to tolerate the increased taxes, and service cuts or whether to move. If the state decides to request federal help, it must negotiate. I don't see any reason to come up with these draconian solutions, that do not necessarily solve the federal concern, which is primarily a return for their money. If they do not think it likely, then they say a loud 'no thanks'.

You are making a drama out of it. Natural consequences are the best consequences. These options are completely ridiculous and punitive. If you don't come to terms, JUST SAY NO.

 

California and Illinois can go **** themselves. The people in those states are also responsible for the politicians they elected so let them run out of water and electricity. Let them die in the streets as payment for their stupidity. I have zero sympathy for any of them cept maybe the kids. If you were an adult and you voted for the people that ran your state out of money then you deserve starvation or death from exposure or being murdered when they can't pay the police anymore. **** all of them.

 

States that have a balanced budget written into their respective constitutions don't have this problem, and shouldn't pay to bail out irresponsible states

 

Not the federal governments business. If they default it hits that States credit rating. If a citizen does not like living under those conditions they can move to a state that acts responsibly.

 

Just trying to apply similar concepts as suggested in the OP. ... ... which suggested maybe bankrupt states should lose their civil rights... and I suggested we apply a similar standard in other situations... like donald trumps bankruptcies

 

Ho hum. Having tax revenues in line with public expenditures is what is important, and America we tend to have a large wealth disparity where a relatively small group of wealthy individuals hold many times more wealth than the rest of the population combined. It therefore stands to reason that they could and should pay more so that public expenditures are covered. A tax shortfall is not a sustainable situation and raising taxes on the poor is hardly sustainable either. The only other possibility is cutting public expenditures, but then as a nation our public expenditures are already quite low. What we have is a lot of people deluded into thinking that what little public spending and services we do have are too much, and thinking that those with billions in assets somehow "earned" all that wealth and should not have to pay taxes on it. The reason I see for this is a right-wing political party and right-wing media that are for all intents and purposes owned and controlled by those wealthy people who benefit from the public holding such ridiculous views and voting accordingly every election cycle.

 

If those aren't leading answers, I don't know what is. This 'poll' is about getting people to agree with you. Apparently you hate poor Red states? Or you believe the myth that rich Blue states are broke. Stupid either way.

The answer is simple and others have offered it, they go bankrupt and then sort out their finances. It really has no bearing on their relationship with D.C. and is outside the scope of the Feds except to secure effected Fed interests such as joint programs.

 

They need to go to bankruptcy court and deal with their lenders. I would suggest a liquidation of assetts.

 

It's most likely unfunded pensions that will put a state into bankruptcy. And they can't get rid of it because it's their legal responsibility and they have the power to raise taxes.

 

All your suggestions are just awful and many even violate the constitution. Why not provide a payment plan, downgrade their credit rating and not loan them any more money until they pay back their debts?

 

Do whatever it takes to keep the people who voted for the people who destroyed their state there (and not roaming around the country like metastatic cancer cells)

 

To laugh heartily.

Your poll really sucks. It's quite one-dimensional. Most of the options you present are unconstitutional, and there is no way the Constitution could be amended quickly enough to be of any value.

Um, cities are allowed to file bankruptcy under Chapter 9, while businesses may file under Chapters 7, 11 and 13.

Individuals may file under Chapters 7 and 11, but the technology is in place to allow Chapter 11 Bankruptcy, and I whole-heartedly agree that many individuals should have everything placed in receivership, with a court-appointed receiver running the person's life.

Oh, brother....States are not allowed to file bankruptcy.

 

Didn't option 3 already happen? In 1865?

And how can any entity with the power to tax ever go bankrupt? (and I know Detroit did, I just don't know why.

 

It would certainly be possible for a state to go bankrupt and destroy its entire economy. That would most likely result in it spilling out people to rest of the country.

(Conservative states beware: what would happen if California spilled out its population? )

 

The feds should do nothing. If a state goes bankrupt, then let that states residents pay the price for their incompetence and greed.

The biggest mistake is allowing people to push the consequences of their mistakes onto other people.

 

If California goes bankrupt (which is likely) then every resident of California should be assessed a fine equal to adult population/debt. Even if they leave for another state, they should still have to pay the fine.

 

My idea..... is that Latter Day Saints in that State......
should convince the politicians in their State... Utah....
to print up a Utah State Volunteerism Hour.... which would be taxable.......
at one hour = minimum wage.....
and the politicians should challenge the Mormons to save their State......
the footage from their debates could increase and increase in value over the coming decades.....
as Latter Day Saints have more and more children and grandchildren......... and great, great, great... grandchildren.....


http://www.politicalforum.com/index...-the-usa-dollar.349935/page-5#post-1067633388

Could a Utah State Dollar save the USA Dollar?