Ask Prof Wolff: The Municipal Bond Racket

A Patron of Economic Update asks: “Hello Prof Wolff, I’ve heard complaints before of the perpetual hamster wheel that cities are on with regards to municipal bonds and Wall Street. Are you aware or is there any model of governance that is possible in a large city, or any city for that matter, to not have to sell municipal bonds to get money to operate, and therefore have to pay back at an interest rate and/or worry about credit rating or defaulting and having the city descend into chaos?“ This is Professor Richard Wolff’s video response. Submit your own question to be considered for a video response by Prof. Wolff on Patreon: