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Robert Winner

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38 cities in the USA have filed for bankruptcy ... why

If we are recovering ... the economy is getting stronger ... less unemployment .... why have 38 US cities filed for bankruptcy .... why are many states on the verge of bankruptcy ... why are we the USA 17 trillion dollars in debit.?

The words do not match the facts ....

I am not an economist or a financial analyst ... what is the problem and what is the solution or is it to late.

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  • Dec 4 2013: Its because local government tends to be full of incompetence.
    Its just like the national government, except the people involved are usually less ambitious, don't have a wealth of experts to call upon, and are often under less supervision and accountability because their actions are a lot less likely to make it to the media (large parts of which have upgraded to a national scale in recent years, which makes your average local news beneath their interest).
    • Dec 4 2013: What about the overall economic situation? Do you believe our business leaders are really better?
      • Dec 5 2013: Overall economic situation is a result of a different process. Years of passing the economy down from hand to hand, with changing objectives and a million different players each with their own interests.

        The problem is, no one fully understands these big economic systems. We've got some pieces of the puzzle, but its all too complex to follow for any on person or even group of people. So we make rules of thumb, and we go with them. They work fine most of the time, but every now and again they fail, and we make new rules of thumb while we're paying the price for the problem with the old set.
        There's a reason you've got recessions the world over. No one's quite figured out a better system than trail, error, and the odd patch and mop up when things start to leak.
        • Dec 5 2013: In Econ101 We are told how to lower wages and engineer the domestic problems as were done in the past. Classical economics Ricardo and Malthus gieve us models that are very impressive.
      • Dec 5 2013: Those models only give you an incomplete picture.
        Even if they manage the economic side flawlessly (and I rather doubt they're capable even of that--again, its really complex even without going international), economy doesn't exist in a bubble. It strongly impacts the society around it which in turns influences the economy, and sociology is among the least exact of the sciences.

        Besides, based on empirical evidence (the only thing acceptable as a basis for a theory if you ask me), the models apparently aren't that perfect. Otherwise, we wouldn't have recessions, which we obviously do.

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