Bankruptcy Quote by Paul Romer
“Unfortunately, we don't have a bankruptcy process. Suppose the state actually just gets to the point where it cannot meet all of its promises that it's made. We might need a way to figure out, O.K., well, who's not going to get what they were promised? This is what we had to do for the city of Detroit.”
About This Quote
Source Speech: Remarks on Fiscal Crisis, Detroit, 2013
When a government cannot fulfill its obligations, a systematic method is needed to prioritize who receives remaining resources.
In simple terms: Prioritize limited resources when promises can't be met.
Key Takeaway
Develop fair allocation criteria.
Themes
fiscal crisis
resource allocation
public policy
Mood
concerned
analytical
Type
policy
economic
When to use this quote
- municipal bankruptcy
- public services
- social welfare programs
Key Concepts
budget constraints
social contract
ethical distribution
Questions to Reflect On
- How should essential services be prioritized?
- What criteria ensure fairness?
A Different Perspective
Allocation decisions may be politically contentious and legally complex.
![“In my very first term there was an issue that brought us [George Mitchell, Ted Kennedy, Chris Dodd] together in a very deep, emotional, and personal level.It was called 'spousal impoverishment' and it meant that for one person [to go into] a nursing home, the family [ ], could go near bankruptcy…” quote by Barbara Mikulski](https://sms4smile.com/quotes/img-quotes/ad5/barbara-mikulski-8601_bankruptcy_in-my-very-first-term-there-was-an-issue_146180.jpg)