Hypothetical question. If states secede from the federal government?
How come they will go bankrupt and the federal government not go bankrupt?
FED gets money from the states and states get money from FED.
- kenLv 68 years agoFavorite Answer
Most states will not go bankrupt. They would just get rid of the middle man with the money.
- hasencampLv 44 years ago
No, we are one u . s . and we ought to continually no longer help secession. on the instant that's Iraq and day after today it's going to be yet another difficulty. till now you comprehend it we can now no longer be the u . s . a .
- sophiebLv 78 years ago
well the Federal government can print it's own money (actually it's not printing more money it's just changing figures on the books, and that's probably why the government refuses to produce a budget). so they'd have money to use just that the value of the dollar will become useless especially with other countries so we'd be on our own.
I'd think that states if they go on their own, well a lot of them are hurting already so where would the money come from, and if there is no federal government to save their but then they will surely be hurting.
- MEL TLv 78 years ago
States use banks like everyone else. Texas has a rainy day fund. However, secession would devalue the US dollar for everyone. At some point I imagine they'd make their own currency pegged to the dollar, if they survived.
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- Mr K DilkingtonLv 68 years ago
Initially, it was mainly southern, red states shouting the secession nonsense. Most of these receive more in federal aid than they pay into federal revenues.
Put bluntly, states like MA, IL, NJ, etc. subsidize states like MS, AL, SC.
- Max HooplaLv 78 years ago
They can't leave so the question is meaningless.
- 8 years ago
It's not hard to shoot holes in any liberals arguments, is it?