Bankrupt Cities
by Mr. Ogre on Dec 20, 2010 at 18:32 Political
So, the city of Central Falls, RI, says that they cannot continue to exist because they simply cannot afford to. They need to merge with a larger city AND receive state help (cash), or they will collapse fiscally.
Oh, and the state already took over their school system and gave the city $604 million in the past 2 decades. The city says they need $2.1 million immediately from the state. Oh, and the city has a $48 million unfunded pile o cash that they owe to government employees. Oh, and another $36 million they owe in government employee health care payouts.
The city has only 19,000 subjects and owes $80 million that they don’t have. In case you’re interested, that’s over $4,000 for every man, woman, and child in the city, that they owe right now, not including ANY current obligations or to keep the city running. Quick: what’s the solution?
Of course, it’s make other taxpayers give them money. The state, the feds, other cities, whatever. Just take the money and give it to them because they want it.
The other solution, a nice, freedom-based solution, would be to let the city go bankrupt. And I don’t mean one of these halfway bankruptcies, where they continue to exist and just don’t pay back loans and that stuff. Let the city cease to exist. Other than government employees, do you think anyone would notice? I bet not.
Of course, if the city did just disband, opportunities would abound. People could start up schools without government interference (well, maybe not, because of state laws). People could create businesses to do the things the city was doing (like trash collection) at a lower rate (well, it is a union state, so they might not be allowed to). Arrests would likely go down because police would not be spending all their time trying to raise revenue for the failing city.
In the end, if a city should cease to exist, I think most non-government employees honestly would not care and would, in fact, be MUCH better off than being forced to continue to support a failed system. Sadly, in America today, a country based on government control and power, that will never happen. Instead, tax rates will be raised and other people will be forced to pay to continue the pointless city of Central Falls. Why? Because government employees will continue to use force to rationalize (and pay for) their own existence.
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Tags: bankrupt cities, government, money, taxpayer bailout
I rode through the Town of Clinton, Louisiana a few years ago and the entire town was for sale.
Tough luck on that name, though. No one in his right mind would make an offer!
There is a town in Japan called Obama, not far from Nagasaki. It isn’t doing well, either.
Union state or not, if there is a void in service due to the town ceasing its service, private enterprise can and should step in and buy the service at auction, then manage it for a profit, whether it be garbage, or water, or electricity.
Private enterprise can and will ALWAYS do it better.
“Private enterprise can and will ALWAYS do it better.”
I completely agree with that statement. However, in America today, that statement now always needs to be followed with: “when government doesn’t stop them.”
There are so many instances now where government will simply put up so many roadblocks to private enterprise, intentionally, so that government can step and say, “Oh, gee, that service wasn’t being provided, so we HAVE to provide it.”
An addendum:
A city is going to horrible lengths! They MIGHT shut down every other street light ( http://losangeles.cbslocal.com/2010/12/20/budget-cut-to-darken-socal-city-street-lights/ )! Oh, the horror!
I’ve been advocating shutting down all street lights for years. It’s called “living within your means,” and government doesn’t believe in it.