Republican Leader Hits Pause Button on Bailouts

Senate Majority Leader Mitch McConnell said in an interview on a prominent radio show on Wednesday that economically struggling states should declare bankruptcy rather than be given a federal bailout.

“I would certainly be in favor of allowing states to use the bankruptcy route. It saves some cities,” McConnell told conservative radio host Hugh Hewitt. “And there’s no good reason for it not to be available.”

The host mentioned several states like California and Illinois that assumed high public employee union costs, and said he opposed an attempt from the federal government to rescue their finances.

“My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don’t have to do that. That’s not something I’m going to be in favor of,” McConnell said.

Continue reading at Business Insider.

Loading...