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Where is the government going to get this money? Most social programs are funded by income taxes, if no one is working there are no income taxes to take from

by syshum 6y ago

Where is the government going to get this money? Most social programs are funded by income taxes, if no one is working there are no income taxes to take from people to pay the people not working Unless you just want infinite money printing. The Federal Unemployment increase ends in July, and it highly unlikely this will be extended, so the county of LA has no ability to print more money, or really extend their debt LA and CA has a real chance of going bankrupt,

qwe098cube 6y ago
CA only has $17.5 billion in reserve as of February. This will most definitively don't last until July. And the government has made it clear they won't bail out states. Once the money drys up CA can't afford to keep counties locked down indefinitely.
nradov 6y ago
It is literally impossible for a sovereign entity like California to go bankrupt. If the state government becomes insolvent then they'll just stop paying some debts and issue IOUs (like with the 2009 budget crisis).
- syshum 6y ago
  While it has never happened, States unlike the federal government can become insolvent, Issuing IOU's (aka debt) only works if the businesses are willing to accept and loan the state the money. and IOU for services is no differant functionally than a loan, and if your business does not believe the state is good for it then you will stop providing services Further I am sure employee will stick around for a long time when their paychecks are replaced with "IOU's" So sure technically there is no bankrupcy court for the entire state, the fact remains that a State can absolutely enter in to a condition that is more or less the same thing as bankrupcy. The feds can just print more money, and most likely CA would beg the feds to do just that to bail them out should that happen Local municipalities and counties can absolutely go bankrupt. Which is more likely in this situation

by syshum 6y ago

qwe098cube 6y ago

CA only has $17.5 billion in reserve as of February. This will most definitively don't last until July. And the government has made it clear they won't bail out states. Once the money drys up CA can't afford to keep counties locked down indefinitely.

nradov 6y ago

It is literally impossible for a sovereign entity like California to go bankrupt. If the state government becomes insolvent then they'll just stop paying some debts and issue IOUs (like with the 2009 budget crisis).

syshum 6y ago
While it has never happened, States unlike the federal government can become insolvent, Issuing IOU's (aka debt) only works if the businesses are willing to accept and loan the state the money. and IOU for services is no differant functionally than a loan, and if your business does not believe the state is good for it then you will stop providing services Further I am sure employee will stick around for a long time when their paychecks are replaced with "IOU's" So sure technically there is no bankrupcy court for the entire state, the fact remains that a State can absolutely enter in to a condition that is more or less the same thing as bankrupcy. The feds can just print more money, and most likely CA would beg the feds to do just that to bail them out should that happen Local municipalities and counties can absolutely go bankrupt. Which is more likely in this situation