Word of the Day
February 10, 2022
Insolvency
The state of being unable to pay one’s debts; financial failure or bankruptcy, particularly of an institution or fund that cannot meet its obligations.
From Latin 'in-' (not) + 'solvens' (paying), from 'solvere' (to loosen, pay). First used in English in the 1650s to describe inability to satisfy debts.
Usage Examples
- The unemployment trust fund's insolvency forced Colorado to borrow over one billion dollars from the federal government.
- Government insolvency often leads to higher taxes and fees for businesses and citizens.
- When social programs reach insolvency, the burden typically falls on employers through increased rates.
From the Show
The concept of insolvency dominated the February 10, 2022 discussion as Roger Hays explained how Colorado’s unemployment trust fund was completely emptied by COVID claims and fraud, forcing the state to borrow from the federal government and threatening businesses with higher unemployment insurance rates.