Fox's Steve Doocy suggests letting states go bankrupt to cut pensions and balance budgets
“There are some who say that is actually a smart thing to do, ... if a state were to do what some cities are able to do and declare bankruptcy, they could reduce pensions”
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From the April 23, 2020, edition of Fox News' Fox & Friends
STEVE DOOCY (CO-HOST): While it may anger the state of New Jersey, the governor here, there are some who say that is actually a smart thing to do because if you have another half a trillion dollars in stimulus for a lot of states -- you know, if a state were to do what some cities are able to do and declare bankruptcy, they could reduce pensions [and] bond debt currently off limits to states, however, some cities can do it. Art Laffer looks at that question about whether the states -- and there are a particular number that really need it and why. He talked about it last night on The Story with Martha.
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AINSLEY EARHARDT (CO-HOST): He brings up a good point. If you were in debt before because of decisions that you made as a governor, should the country come in and bail you out because of coronavirus?