Your State Could Go Under

Thanks to the Covid-19 Pandemic, the financial condition of many US states is in peril. Several states were facing shortfalls due to pension claims from retired government workers but the pandemic has seen expenses to fight the pandemic skyrocket upward and tax revenue from sales taxes plummet. This has created a weird scenario where some US states may need to declare bankruptcy on their pension obligations or their debt. What does this mean? We don’t really know and that is the problem. A US state has never gone under before. Is the federal government responsible? Some scholars say no, but isn’t letting a state go under bad politics? In this video we learn all about the problem and what might happen if a state goes bankrupt.