This chart, published in the New York Times and based on work by Andrew Biggs of the American Enterprise Institute, shows the states with the most serious debt problems. Maybe I don’t follow state issues closely enough, but I was surprised to find that Alaska had the most debt and that California was not very high on the list.
State debt is a combination of several factors, of course, including past deficits (I assumed California would be higher just based on their current levels of red ink) and unfunded liabilities for things such as pensions for state bureaucrats.
I may be wrong, but I suspect Alaska is in better shape than these numbers indicate because of the ability to tax oil and other naturual resources. I have no reason for any optimism about places such as Rhode Island and Ohio.
[…] so politicians in those states have lots of revenue to spend. Indeed, too much if we believe these numbers showing state debt in […]
[…] piece. Illinois is a high-tax state. Illinois is a big-government state. Illinois is a state heading toward fiscal collapse. There are many things wrong with the Land of Lincoln, but it hasn’t compounded those other […]
[…] piece. Illinois is a high-tax state. Illinois is a big-government state. Illinois is a state heading toward fiscal collapse. There are many things wrong with the Land of Lincoln, but it hasn’t compounded those other […]
[…] on fiscal policy in recent years, so I assumed politicians were giving out lots of goodies. But apparently bureaucrats are first in line for handouts and that reduces the amount of loot available for other […]
[…] on fiscal policy in recent years, so I assumed politicians were giving out lots of goodies. But apparently bureaucrats are first in line for handouts and that reduces the amount of loot available for other […]
[…] on fiscal policy in recent years, so I assumed politicians were giving out lots of goodies. But apparently bureaucrats are first in line for handouts and that reduces the amount of loot available for other […]
What happened to Maryland ??
What would Jindal have to do for you to be a fan of his?
I think your evaluation of Louisiana is dead wrong. It is wrong, not because your numbers are incorrect, but because they are for a ten-year period. In reality, the last few years our state has become fiscally responsible and has reigned in government to the extent that it has become a magnet for new business. It is now #1 or #2 on many lists of the best place to do business in the country. I am not the biggest fan of our governor Jindal, but he has done a fabulous job of bringing our state into one of the most fiscally responsible in the nation.
[…] failure based on my Golden Rule, it also doesn’t have a lot of breathing room. If you look at this info-graph on state debt, you can see that it has the nation’s 7th biggest debt load. In other words, the Garden […]
Yes it is surprising. The next ten years will really expose these states to some rough times.