When Detroit went bankrupt in 2013, it was a basis for pundits to make negative projections on urban America. After all, a city with decades of Democratic rule and left-wing policy had declared itself insolvent. It was just a matter of time, the thinking went, before politically-similar cities followed.
Six years later, the specter of mass municipal insolvency still holds sway for some. Famed investor Warren Buffett has warned about purchasing municipal bonds or opening companies in states with excessive debt. Strong Towns, an urban affairs non-profit, makes similar claims. But these warnings do not reflect any broader condition about U.S. cities. Rather, the threat of fiscal insolvency is a problem in specific cities, for specific reas…
Read the full article at: https://catalyst.independent.org/2019/07/09/are-u-s-cities-fiscally-insolvent/
