So why did the CARES Act authorize the half a trillion dollars in Fed lending directly to state and local government entities?
It’s simple: A few states were in a lot of trouble before COVID-19. Make that one state: Illinois.
Yet this form of payday lending has hardly instilled market discipline. Illinois hasn’t taken any concrete steps to cut spending.
The Fed debt comes due in a couple of years. Does anyone think the situation will be fixed then?
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.