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The following article was published in our article directory on December 27, 2010.
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California and New York Economy Almost Into Paralysis

Article Category: Business Management

Author Name: Amanda xzh

Unable to compensation owed trillions of dollars in huge debt, more than 100 U.S. cities may be bankrupt in 2011. Whitney warned that the U.S. debt crisis is where the biggest problem facing the U.S. economy is likely to get America off the economic recovery on track.

Economic recession that the United States dropped the local tax and social security spending has soared, rising risk of insolvency, the gun had even worse debt situation is just as heavily indebted small countries in Europe, so the outside is called "debt crisis in the U.S. version of Europe" .

Statistics show that, at present, the U.S. total debt of state and municipal governments up to 2 trillion U.S. dollars. In tight budget predicament, "Motor City" because of money and forced to cut dig do not police, to reduce lighting, road maintenance and street cleaning services; California state government will substantially increase tuition at public universities 32% ... ...

Economic recession that the United States dropped the local government tax revenue and social security spending has soared, rising risk of insolvency. The gun has long been more worse debt situation is just as heavily indebted small countries in Europe, so the outside world as "the U.S. version of European debt crisis."

100 cities next year, fear of bankruptcy

Have caused the collapse of several banks and even the country's debt crisis spread to the cities next year, more than 100 cities in the United States may go bankrupt next year. Whitney believes that the U.S. debt problems of local government is the biggest problem facing the U.S. economy could cause the U.S. economic recovery from the track, in addition to real estate, the debt crisis is the most serious problem the United States, it is certainly the largest in the U.S. economy threats.

Local government for the U.S. debt crisis, governor of New Jersey, Christie made a concise summary: "We spent too much money on each thing. We overdraft too much. We were crazy loans. Now credit cards maxed out. What we need now climb from the hole underneath, and the hole we have dug more than 10 years. We have to slowly climb out, but it is very difficult. "

Amounted to 2 trillion dollars of debt

U.S. state and municipal debt as high as 2 trillion. Cost of U.S. states tax more than 5,000 billion U.S. dollars, but also face the 1 trillion U.S. dollars in welfare fund gap.

Currently, the "Motor City" Detroit is beginning to cut police forces to reduce the lighting, road maintenance and street cleaning services, nearly one fifth of the population affected. With the decline of the U.S. auto industry, Detroit is the lack of adequate financial resources to provide services to 90 million urban population. "The city can only be self-reliant, because the government leg to stand on." Professor of geography at the London School of Economics, Phillips said Andreas, "the municipal government have their own debt, some cities may be forced to take a significant cost-cutting measures such as Detroit. "

Neighboring Illinois overhead is twice that of income, outstanding loans in recent months. However, Illinois State University has been in debt $ 400,000,000. It is reported that the state faces the risk of bond defaults was 21%, the highest in the U.S. state. In California, the state public college tuition has increased by 32%. Arizona State Capitol building and state has sold to investors in the High Court building and then lease them back.

50 U.S. states, half of the states have cut government employees, 22 states introduced unpaid leave plan, at least 28 states have ordered a full budget cuts, many states have launched a specific agency for a substantial reduction plan, pension on the financial gap is becoming bigger and bigger.

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