Article Image

IPFS News Link • Government Debt & Financing

Nationwide Lockdown Sparks Plunge In Local Govt Tax Revenues;

• by Tyler Durden

Small to medium size cities and counties across the United States are facing huge budget gaps amid the coronavirus shutdown induced record unemployment, drying up crucial tax revenue for local governments

Bloomberg profiles a domino effect that Jefferson County, Alabama famously went through in 2011 leading to the biggest municipal bankruptcy in US history, saying it's experience portends a tsunami of what will be similar local government collapses.

"A massive share of the local government's tax revenue disappears. Elected officials lay off employees and shutter a health-care facility used by the poorest residents. Road work grinds to a halt. Residents wait in hours-long lines to renew their licenses," Bloomberg introduces of the scene that Alabama's largest county witnessed years ago.