How to Stop States from Borrowing Too Much Money
Episode Description
📂 Public Policy 🏷️ Research
Brief Summary
Vinton Buccola discusses state debt, bankruptcy mechanisms, and introduces tax credit borrowing as a potential solution to over-borrowing issues.
Key points
- The Problem of State Debt. Vinton Buccola discusses excessive state debt and its implications for investors and markets.
- Bankruptcy Mechanism Ineffectiveness. Buccola explains why a proposed bankruptcy mechanism won't help reduce state borrowing.
- Tax Credit Borrowing Explained. A new approach to circumvent sovereign immunity and reduce state borrowing costs.
- Historical Context of State Defaults. A look at the history of state defaults and their implications for the future.
- Misconceptions About State Defaults. Buccola addresses public misconceptions regarding the risk of state defaults.
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Episode highlights
- The Problem of State DebtVinton Buccola discusses excessive state debt and its implications for investors and markets.“There’s a concern that some state debt could end up in default.”0:17Feb 28, 2017
- Bankruptcy Mechanism IneffectivenessBuccola explains why a proposed bankruptcy mechanism won't help reduce state borrowing.“The bankruptcy mechanism won't work to reduce state borrowing.”2:15Feb 28, 2017
- Tax Credit Borrowing ExplainedA new approach to circumvent sovereign immunity and reduce state borrowing costs.“Tax credit borrowing may have more promise than a bankruptcy mechanism.”4:30Feb 28, 2017
- Historical Context of State DefaultsA look at the history of state defaults and their implications for the future.“States can walk away from their obligations.”9:04Feb 28, 2017
- Misconceptions About State DefaultsBuccola addresses public misconceptions regarding the risk of state defaults.“It’s not impossible for the state to default.”9:21Feb 28, 2017
Tension
40/ 100Low tension
