On June 28, 2012, the city of Stockton, California filed for Chapter 9 protection, becoming the largest U.S. city ever to declare bankruptcy. Since 2010, seven U.S. cities and counties have filed for bankruptcy, and analysts predict more may be in the offing. Far from being isolated incidents of a few profligate municipalities, the global economic downturn has demonstrated the sobering reality of fiscal imbalance, one that is threatening larger cities and even countries around the world.

Resolved: Is the U.S. Headed Toward Bankruptcy?

Arguing for the resolution:

Pat Toomey was elected to represent Pennsylvania in the U.S. Senate in 2011 on a platform focusing on fiscal discipline.

Grover Norquist is founder and president of Americans for Tax Reform (ATR), a taxpayer advocacy group.

Kimberley Strassel writes “Potomac Watch”, a weekly column for the Wall Street Journal, and serves on their editorial board.

Arguing against the resolution:

Chris Van Hollen has represented Maryland's Eighth District in Congress since 2002 and as the ranking member of the House Budget Committee since 2011.

Austan Goolsbee served as chair of the Council of Economic Advisors and chief economist for the President’s Economic Recovery Advisory Board from 2010 to 2011.

Neil Barofsky served as Special Inspector General for the Troubled Assets Relief Program (TARP) from 2008 to 2011. 

Moderator:

Jake Tapper is senior White House Correspondent at ABC News and a regular contributor to ABC programs “Good Morning America,” “Nightline,” and “World News with Diane Sawyer.”