No To State Bailouts

States that have followed Europeâ??s economic policy model of unbridled spending are getting Europeâ??s economic results: low growth and looming fiscal catastrophe. As big government, low-growth states fall deeper into the fiscal hole, the question becomes whether Washington politicians will force taxpayers in more prudent states to bail them out. This cannot be allowed to happen. As the 2008 financial crisis proved, bailouts never solve anything. They only create more problemsâ??moral outrage on one side, and moral hazard on the other.