Six States in Economic ‘DEATH SPIRAL’ – Is Your State on the List?

Is your state on the list?


Six states currently have the dubious distinction of having more people collecting a state government paycheck than people in private industry. This has huge implications for these states. Taxes have to keep going up to support those being paid by state revenues. As Forbes reports, when the next recession hits, these states may go into an economic “death spiral”.

The six states are, (in order of percentage of people collecting a state government check to private industry employees), New Mexico (143%), West Virginia (116%), California (114%), Mississippi (111%), New York (108%), and Arkansas (103%).



Forbes asks the question, “What happens when employers tire of the burdens and leave?” Don’t think it can happen? It’s happening right now in Puerto Rico, where productive citizens and companies are leaving in droves for the mainland. Those left behind are burdened with an ever growing burden of taxes and stifling debt.

The states with the smallest burdens are currently North Dakota (42%), Utah (45%), Nebraska (47%), and New Hampshire (47%).

So what happens when these free-spending states can no longer pay their bills? Pension cuts and mass lay-offs are real possibilities. But their liberal, spendthrift politicians are hoping for something else. Think of another 2008-style massive bailout using government money, in the name of “protecting jobs”. Yes, they would love Uncle Sam to bail out their underfunded pensions, bloated administrations with inflated salaries, and all their state and municipal employees. That’s every taxpayer in every state, bailing out irresponsible behavior in liberal states. And if we have a Democrat in the White House when the bills come due, it is likely that they will get it.