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Mitch McConnell’s Crazy Idea: Let States Declare Bankruptcy
Governing: Senate Majority Leader Mitch McConnell told a national radio audience earlier this week that “we’re going to hit the pause button” on legislation to provide fiscal assistance to states and local governments whose revenues are plummeting amid the coronavirus pandemic. And McConnell took things a step further, saying bankruptcy should be an option for states whose fiscal burdens are compounded by their public-pension deficits. In other words, stiff the bondholders and retirees.
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