Illinois and the federal debt default
Paul Merrion of Crain’s Chicago Business got a jump Wednesday on an issue already generating a sub-genre of stories — how would a federal debt default impact local governments and communities? As has been diligently chronicled over the last months, the expiration of the debt ceiling would be devastating to the American economy. Illinois – a state that already owes billions in interest payments — would have to start making good on major payments as the state’s credit rating could be lowered. Money to pay off the debt means less money for Medicaid, education, and everything else the state must pay for.
