Scranton Should Just File Bankruptcy

The sale of the public sewer authority as well as other public assets is a sure indication of one over arching truth. THE GOVERNMENT OF SCRANTON DOES NOT HAVE ANY MONEY. When that occurs, the sensible thing is to confront reality and come clean with the truth of one’s financial circumstances. The city of Scranton is on a death spiral and the indicators suggest little hope for the city. What can the government of Scranton do in this situation?

File Bankruptcy

Yes, the government of Scranton cannot do more damage than it has already done. The city has zero prospects to look forward to except for low paying retail jobs in the steamtown mall. While the American economy experiences record highs in profitability and new opportunities blanket the American landscape, Scranton is wrestling with an over 300 million dollar debt that they can never pay back. The sensible thing to do in these circumstances is to seek outside intervention. The Scranton government should admit that is has no money and file for bankruptcy. Let a third-party take a gander at the pension and budget in order to make the tough decisions that the Scranton government is incapable of making. Scranton already has a zero bond rating so this would not hurt its credit possession in the slightest. In fact, it would improve its credit rating because it will be a signal to financiers that Scranton is ready to take its fiscal situation seriously.

Post Bankruptcy

After they declare bankruptcy, they can create a pro-growth environment where they can bring in jobs that pay well which would in turn increase the tax base. Any problems with the pension could be resolved with the increased revenues that would be received through taxation consumption and growth. Furthermore, by incorporating modern technologies, the Scranton government could run much more efficiently which would mean it would require less tax dollars to operate. This would mean rebates for Scranton tax payers who could spend this extra money on home improvements. The city could announce to the world that it is open for business and utilize its landscape to create a budding commercial hub. This strategy would be far more advisable as opposed to the current strategy of kicking the can down the road and the Scranton government sticking its collective head in the sand.

Create Jobs

Why do we act like the jobs that were lost cannot be replaced by new jobs? How did the jobs that were lost get there in the first place? They got their through invention, innovation and new ideas. We can do the same thing today! It is clear that the Scranton government operates only for those who are politically connected, but it would be to the benefit of everyone, including the politically connected, for the Scranton government to file for bankruptcy and move forward. The City of Scranton can then boldly move forward with new initiatives and turn the page on the status quo. After all, isn’t that what made this country great in the first place?

 

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