Scranton, PA, Deep In Debt, Tries To Pick Itself Up

As the island of Puerto Rico illustrates, when a regional government and its citizens are not careful, a debt burden can result in significant changes to an area’s economic viability. On the continental US, several cities and regions watch Puerto Rico closely. For instance, the Chicago Teacher’s Pension Fund paid out $1.5 billion last year but earned only $7.8 million on its investments. Who pays the balance? In many cases taxpayers. A similar situation is currently playing itself out in Scranton, PA, where the population has been cut nearly in half as the local debt burden mounts to new levels. Residents are fighting back, as recent primary elections resulted in a sweep of establishment candidates by those expecting...