State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don't know is whether that order will be enforced. And ultimately, the busted state is going to be looking to the federal government for a bailout. Think Greece, but on a much bigger scale.
Related Authors: Ayn Rand Leo Tolstoy John Locke Vladimir Lenin Noam Chomsky Milton Friedman Thomas Sowell