Monday, May 24, 2010

32 States Are Now Pretty Much Bankrupt

Zerohedge posted this gem:
Courtesy of Economic Policy Journal we now know that the majority of American states are currently insolvent, and that the US Treasury has been conducting a shadow bailout of at least 32 US states.

Over 60% of Americans receiving state unemployment benefits are getting these directly from the US government, as 32 states have now borrowed $37.8 billion from Uncle Sam to fund unemployment insurance.

The full list of America's 32 insolvent states is below, sorted in order of "bankruptedness" shown in millions.

California $6,900
Michigan 3,900
New York 3,200
Penn. 3,000
Ohio 2,300
Illinois 2,200
N.C. 2,100
Indiana 1,700
New Jersey 1,700
Florida 1,600
Wisconsin 1,400
Texas 1,000
S.C. 886
Kentucky 795
Missouri 722
Connecticut 498
Minnesota 477
Georgia 416
Nevada 397
Mass. 387
Virginia 346
Arkansas 330
Alabama 283
Colorado 253
R.I. 225
Idaho 202
Maryland 133
Kansas 88
Vermont 33
S.D. 24
Tennessee 21
Virgin Islands 13
Delaware 12

How many of these states are considered "Blue States"?
The top 5 definitely are.
I don't think that the American taxpayer should have to pay for the expensive consequences of failed progressive-socialist policies in those states. When these states pay out more than they are taking in, then that is a fiscal failure. When they cannot cover their obligations in pensions and unemployment benefits and other programs, then that is fiscal failure. When they over-tax their most successful citizens and businesses in order to fund every social giveaway under the sun, and still don't have the money to pay their obligations, then that is a fiscal failure. That is why people and businesses end up LEAVING those states.
They’ve got the usual Socialist disease—they’ve run out of other people’s money.” ....... ----"The trouble/problem with socialism is that you eventually run out of other people’s money.” Margaret Thatcher (paraphrased)

Just wait till "Obamacare" kicks in.