The 11 worst states fiscally speaking

Discussion in 'Politics' started by Wiseacre, Nov 29, 2012.

  1. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194
    A few days ago Bill Baldwin wrote a piece in Forbes magazine about the 11 worst states to buy a home or invest in, by virtue of being in a financial death spiral. Do you live on one of these states?

    New Mexico
    Mississippi
    California
    Alabama
    Maine
    NY
    South Carolina
    Kentucky
    Illinois
    Hawaii
    Ohio

    snippet:

    Two factors determine whether a state makes this elite list of fiscal hellholes. The first is whether it has more takers than makers. A taker is someone who draws money from the government, as an employee, pensioner or welfare recipient. A maker is someone gainfully employed in the private sector.

    The taker count is the number of state and local government workers plus the number of people on Medicaid plus 1 for each $100,000 of unfunded pension liabilities. Sources: the Bureau of Labor Statistics, the Kaiser Commission on Medicaid and a study of state worker pensions done in 2009 by two academics, Joshua Rauh and Rovert Novy-Marx. Professor Rauh estimates that the shortage in pension funding is on average a third higher today.

    The second element in the death spiral list is a scorecard of state credit-worthiness done by Conning & Co., a money manager known for its measures of risk in insurance company portfolios. Conning’s analysis focuses more on dollars than body counts. Its formula downgrades states for large debts, an uncompetitive business climate, weak home prices and bad trends in employment.

    Conning rates North Dakota the safest state to lend money to, Connecticut the most hazardous. A state qualifies for the Forbes death spiral list if its taker/maker ratio exceeds 1.0 and it resides in the bottom half of Conning’s ranking.

    Do You Live In A Death Spiral State? - Forbes
     
    Last edited: Nov 29, 2012
  2. WillowTree
    Offline

    WillowTree Diamond Member

    Joined:
    Sep 15, 2008
    Messages:
    68,104
    Thanks Received:
    10,154
    Trophy Points:
    2,030
    Ratings:
    +14,648
    No, Thank Gawd I do not.
     
  3. Claudette
    Offline

    Claudette Gold Member

    Joined:
    Nov 3, 2009
    Messages:
    19,558
    Thanks Received:
    3,009
    Trophy Points:
    280
    Ratings:
    +7,627
    Me either. Thank God.
     
  4. TakeAStepBack
    Offline

    TakeAStepBack Gold Member

    Joined:
    Mar 29, 2011
    Messages:
    13,935
    Thanks Received:
    1,723
    Trophy Points:
    245
    Ratings:
    +2,012
    Yep. The LOLberal utopia promise here in NY is forever fleeting.
     
  5. konradv
    Offline

    konradv Gold Member

    Joined:
    Mar 23, 2010
    Messages:
    22,542
    Thanks Received:
    2,554
    Trophy Points:
    280
    Location:
    Baltimore
    Ratings:
    +5,661
    So what's the excuse in MS, AL, SC and KY?
     
  6. boilermaker55
    Offline

    boilermaker55 VIP Member

    Joined:
    Aug 12, 2011
    Messages:
    5,340
    Thanks Received:
    455
    Trophy Points:
    85
    Ratings:
    +1,061
    Well, wow. If you live there and are unhappy. Why not get your happy ass out of the state.
    Must be something that keeps that hypocritical butt of yours there.


     
  7. Foxfyre
    Offline

    Foxfyre Eternal optimist Gold Supporting Member Supporting Member

    Joined:
    Oct 11, 2007
    Messages:
    47,656
    Thanks Received:
    10,773
    Trophy Points:
    2,070
    Location:
    Desert Southwest USA
    Ratings:
    +14,349
    I do live in the No. 1 worst state on that list:New Mexico. I did most of my growing up here, was away for a long period, but have been back now for 28 years. Fairly low in population for a state that is fifth largest in land area in the country, we have one of the nation's most diverse populations with 'anglos"--(Anybody who is not Native American, black, Asian, Hispanic, or Italian is called 'anglo' here regardless of where they were born)--being in the minority at about 40% of the population. Our population was pretty stagnant for some time until last year when it surged about 2%--we think due to all the illegals escaping Arizona. We have a very high foreign born population here.

    Not only are we saturated with government employees at all levels, but we have a significantly larger number of people living below the poverty threshhold than the national average. We have a higher home ownership ratio than the national average but in most social factors such as education, graduation rates, people with higher education degrees, life expectancy, we hover at or near the bottom. At 6.3% unemployment, we are below the national average but some theorize this is due to an increase of people going on welfare or an increase in government jobs. We have a pretty unfriendly business environment here.

    Our bright, energetic, smart young governor is making some positive changes, but she can only do so much with a solidly leftwing and pro-federal government state legislature. New Mexico has never had a Republican controlled legislature in the history of the state.

    Even with all the negatives, however, New Mexico has much to commend it and it is possible to achieve the American dream here. Despite a fairly high crime rate for a small state--mostly from our high percentage of people here illegally and vigorous drug trafficking--traditional values are still important here. I attribute that to a high percentage of church going Christians with the majority of those being Catholic. It does have a tempering influence.
     

Share This Page

Search tags for this page

worst states to buy a home