The US government has never had to bail out a state since the revolutionary war. There were city loans and company bailouts, but nothing as large as a state.
The problem is also the reason why. Chinese cities and provinces can’t self raise money, so they have been relying of SOE’s to raise money to fund their budgets. Given that future growth projections, both economic and population, can’t sustain the economics used to fund city and provinces like they used to, China is going to need to radicaly change how it taxes its populace.
The US government has never had to bail out a state since the revolutionary war. There were city loans and company bailouts, but nothing as large as a state.
The problem is also the reason why. Chinese cities and provinces can’t self raise money, so they have been relying of SOE’s to raise money to fund their budgets. Given that future growth projections, both economic and population, can’t sustain the economics used to fund city and provinces like they used to, China is going to need to radicaly change how it taxes its populace.