Failing States
No, not Pakistan. Illinois, Oregon, Wisconsin, Arizona, Michigan, Nevada, New Jersey, Rhode Island
California’s ongoing fiscal crisis has attracted national attention, but a study warns that nine other states are barreling toward similar economic disaster.
A report released Wednesday by the Pew Center on the States says Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin also are at risk of fiscal calamity.
That could mean higher taxes, more layoffs of government employees, increasingly crowded classrooms and fewer services in states that account for more than one-third of America’s population and economic output.
Most of the states face rising unemployment and high home foreclosure rates, and their revenues have dropped by double-digit percentages.
It would be interesting to know what they have in common, as distinct from other states that are doing well. It isn’t a Left/Right thing, because Arizona is there. It isn’t rapid growth because Michigan is in the line-up. Is it simply high taxes? If so, why isn’t NY showing up? It would be good to know so that we don’t repeat the same mistakes moving forward.
Also, I wonder if these states are too big to fail?
- Aggie
Bloodthirsty Liberal said,
November 11, 2009 @ 5:02 pm
And, Aggie, I just heard New York state is in the same fiscal mess.
Didn’t they just raise taxes in the city and state? Imagine the bad luck of finding revenue decreasing as tax rates increase. Some states just can’t catch a break.
BTL
Bloodthirsty Liberal said,
November 11, 2009 @ 5:56 pm
I wonder if that’s it - if the states have in common increasing taxes? I just have a sense that there must be a common thread. What the heck could it be?
- Aggie
Carol said,
November 12, 2009 @ 8:13 am
Yesterday there was a story in the news that state labor unions are in a tizzy in Washington because the legislature wants to balance the budget without increasing taxes. The unions actually seem to think that tax increase are the way to go. I’m astonished that Washington was not on that little list.
Bloodthirsty Liberal said,
November 12, 2009 @ 8:32 am
Carol,
I bet a nickel that the reason certain states didn’t qualify for the list has to do with tight a tight definition for “failing”. Alternatively, you can chock it up to the laziness of journalists.
- Aggie