Peter Gordon Archive
By Peter Gordon • Friday June 8, 2012 at 2:23 PM PDT
It seems that push has come to shove in some California cities. The Stockton City Council voted to give its City Manager the green light to file for bankruptcy—which could address the problem of that city’s debt, now thought to be in the range of $25-40 million. The City’s diminished income is not up...
Tags: American History, Budget and Tax Policy, California, cities, Civil Society, Economics, Elections, fiscal insolvency, government employee unions, government pensions, infrastructure, Labor, local government, Politics, Privatization, public employees, public sector, Robert Fogel, San Diego, San Jose, social services, Stockton, Taxation, Unemployment, Urban Issues, Welfare, X-Prize
By Peter Gordon • Monday March 19, 2012 at 4:16 PM PDT
Capitalism without bankruptcy is like religion without hell, the saying goes. The grain of truth here is that we depend on markets for error-correction; “people are fallible, but competition selects”, as Adam Smith well noted. But many who fail in the marketplace seek a way out via politics. This includes bail-outs, as well-documented in...