reply on: Texas Manufacturing Slump Deepens in July \ stacker news ~econ

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21 sats \ 10 replies \ @Satosora 30 Jul \ parent \ on: Texas Manufacturing Slump Deepens in July econ

California and Illinois. California has always been troubled financially. What happened to Illinois? Chicago is there...

47 sats \ 9 replies \ @Undisciplined 30 Jul

Chicago's a huge mess financially and it's losing population. Many people expected it to go bankrupt during the Great Recession, just like Detroit.

42 sats \ 8 replies \ @Satosora 30 Jul

I know, but it stuck around. A few of my friends ended up taking a position at hospitals around there.

20 sats \ 7 replies \ @Undisciplined 30 Jul

It's called a "financial death spiral". As their unfunded liabilities come do, they'll have to raise taxes, which will cause more people to move away, further reducing their revenue.

That's exactly what happened to Detroit and several other cities in Michigan. The big difference is that Michigan is better managed at the state level than Illinois, so they were able to get through it.

21 sats \ 6 replies \ @Satosora 30 Jul

Unfunded liabilities, are those the mature pensions? Detroit took a big hit for a few years, but they are picking themselves up.

20 sats \ 5 replies \ @Undisciplined 30 Jul

I think it's mostly pensions, but also some bond obligations.

Yeah, Detroit's rebounding. It had also been declining since the 60's so it's not likely to get back to where it had been. Eventually, people get through economic downturns. I'm not expecting anywhere to turn into Thunderdome.

21 sats \ 4 replies \ @Satosora 30 Jul

Thunderdome? Mad max reference? They had a big economy based on building cars for the longest times. Do any car manufactures still make cars in detroit?