In Search of a New Understanding
Economic theories and economic history provide structures within which people can better understand what is happening to local economies today and how best to ensure sustained local economic growth. Cities across the United States have declared bankruptcy with varying outcomes. Their lessons are instructive to others who are faced with the same dilemma of not wanting to declare bankruptcy but feeling it may be the best way forward. The real advantage for a municipality is that it gives more time to accomplish those matters. If the city and the creditors cannot agree on a partial payment schedule, the state can send in an administrator to take over or the courts can make the decisions for the parties involved. In a 2010 survey of the nation's cities, the National League of Cities learned that economic development was the most critical issue cited; it was noted as vital by 66 percent of all respondents and out-polled public safety.