Federal aid for states shouldn’t become bailouts for failed policies

Many predicted California’s COVID-19 lockdown would finally bankrupt badly managed state and local governments. We were wrong.
In the face of decades of debt and despite the rapid decline in sales tax revenue — the oxygen of local government — we have yet to see a parade of city officials ascend the bankruptcy court steps. The reasons?
The Federal Reserve has provided reeling state and local governments unprecedented liquidity. And despite the grim news out of Washington, D.C.,