Allowing states to declare bankruptcy would end federalism and convert states into wards of the federal government, claimed John Baker, professor emeritus of law at Louisiana State University and Federalist Society contributor, offering his analysis on Friday’s edition of SiriusXM’s Breitbart News Daily with host Alex Marlow.
On Wednesday, Senate Majority Leader Mitch McConnell (R-KY) expressed support for allowing states to use bankruptcy to discharge certain liabilities. “I would certainly be in favor of allowing states to use the bankruptcy route,” he said. “It saves some cities, and there’s no good reason for it not to be available.”
“[Mitch McConnell] is suggesting amending the bankruptcy code to allow states to go into bankruptcy court and go through a process the way that cities and other municipalities are able to do under a chapter of the bankruptcy code,” said Baker. “There are good reasons why states cannot do this and should not ever be able to do it.” ….