“Following in the federal government’s footsteps, states and cities are borrowing heavily to finance spending, a strategy that could speed economic recovery while leaving a heavier debt for future generations. States and local governments borrowed $53.5 billion in the first three months of the year, just shy of the first-quarter record set in 2003, Thomson Reuters Financial reports. Governments also refinanced $31 billion in debt to get lower interest rates and longer repayment schedules.” (USA Today, Monday)
And they can’t print money to pay it back.
FEE Timely Classic
“Misplaced Hope” by Hans F. Sennholz
