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Why U.S. Cities Are Going Broke

CNBC 28



Spending cuts are abound in many U.S. cities as inflation lingers and pandemic-era stimulus dries up. At least 53 major cities have debt obligations that outstrip their assets, according to an estimate from Truth in Accounting. The group estimates higher debt burdens than many public officials report, due to allegedly underreported retiree benefits. The rising public debt may potentially leave future generations on the hook for financial decisions made by today’s leaders.

Correction (4/25/24): At 7:45 a previous version of this video incorrectly named the Mayor of Chicago. His name is Brandon Johnson.

Chapters:
0:00-01:01 Cold Open
01:10-04:45 Chapter 1: Spending
04:45-06:53 Chapter 2: Management
06:53-08:39 Chapter 3: Credit ratings
08:39-10:46 Chapter 4: Federal help

Produced and Edited by: Carlos Waters
Animation: Christina Locopo, Jason Reginato
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images

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Why U.S. Cities Are Going Broke

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28 comments
@EvaHoffmann153

The devaluing dollar sparks concerns about economic instability, reminiscent of the misconception surrounding the $2 bill – often perceived as rare, despite being consistently printed since 1862. In reality, its scarcity stems from low circulation and limited demand, not rarity. This misconception parallels my cautious approach to investing in unconventional assets.

@jgrawn

Voodoo economics. The reality is people can't afford homes, can't pay for child care, struggle to pay grocery bills. Can't afford health care. Rents are outrageous. The solution? Well obviously it isn't being addressed at all thats for certain. Im tired of a two family income where ppl starve trying to get by. In the past people could buy a home and have a decent living on one income while one stayed at home to take care of the children. Something is fundamentally wrong.

@mlegacywlyfe1115

Lol mean while billion dollar empty skyscrappers are sitting as investments..sale them!!!!

@truyentruong9015

Did he say nyc has 8 million people in 5 COUNTIES? 😂😂😂

@MuyangHappy.2y

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them..

@grahamjones5400

Name one major city in a " rich" country that isn't broke or running huge deficits