The Humble Libertarian

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Thursday, July 5, 2012

Misunderstanding Stockton. The bankrupt city isn’t merely a victim of circumstance

Stockton is a textbook example of what happens when cities spend themselves into oblivion and pile on un-affordable debt. As the economy continues to worsen, there will be many more cities like Stockton - broke, bankrupt and debt ridden.
Stockton embraced a combination of overly generous compensation packages for city employees and excessive debt spending—not only on pension bonds but also on bonds to pay for redevelopment projects, which were supposed to revive the downtown area. (They predictably failed, but that’s another story.) The city’s health-care plan was so generous that employees and their spouses could sometimes qualify for lifetime health care after only a short time on the job.... Stockton, which squandered tax dollars on subsidized stadiums and Western European–style employee benefits, shows what happens when such warnings aren’t heeded.
Read the rest here
City Journal 

Judy Morris,
Blogger, THL
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