How do we help failing states?  Efficient states are growing.  Heavily regulated states are shrinking as young people leave to find better jobs and a better life.   That out-migration is beyond the control of these failed and fading political institutions.  Will they learn, or will the courts have to clean up the un-payable obligations these hollow states leave behind?  Lenders can’t rely on taxpayers who leave.  It is better to restructure these failed states now rather than ignore their problems while they make more un-payable political promises.  I want you to appreciate the scope of the problem by comparing two numbers.

Compare the amount of money a company gets to keep with the amount of money the government gets to takes in taxes and fees.  I think the relative size of those two numbers explain why there are now so few children in Chicago and New York.  Let’s compare…

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