My brother lived near Stockton, California, which declared bankruptcy within approximately the past five years. Here’s what happens when a governmental entity goes broke:
There are no police, fire department, ambulance drivers.
Education stops. School teachers, janitors, security people, bus drivers stop going to work.
Crime increases exponentially. Every street corner becomes home for hookers, thieves, drug dealers, etc.
Government employees stop coming to work. No one opens the library, jail, fire department, road repair department, etc.
Businesses the government owes money to go broke. Some businesses lose everything — lock the doors and send employees home.
The government can’t get money; businesses incur a substantial reduction in business activity. Junk bonds mean no bonds — investors do not purchase zero return investments.
Bankruptcy doesn’t happen because of some political announcement. It happens because investors stop investing or quit buying goods and services from an overpriced, wasteful organization they have lost faith in. Investors began raising concerns about Illinois’ financial affairs a long time ago. Financial sources will not invest money in an organization they have zero confidence in.
Illinois Democratic politicians and the Republicans that dropped their support for Gov. Bruce Rauner’s agenda have thrown their support to bankruptcy thinking they run the state and the taxpayers have no choice. Taxpayers have two choices, two difficult choices to make to avoid higher taxes: Vote against Democrats in every elections, not just some elections, or leave the state, a choice many Illinoisans have already made.
Joe Fairbanks, Fairview Heights