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Monday, January 04, 2016

Which Are Death Spiral States?

Does your state have more takers than makers? Check it out.

California has a powerful economy, with 14 million private-sector jobs. It also has burdens: welfare recipients (12.6 million), generously paid government employees (2.1 million) and people collecting government pensions (1.3 million).

Add up the numbers. There are 114 clients drawing from the government for every 100 people chipping in by working outside the government and paying taxes. We’re calling this the Feedme Ratio. Six states have a number over 100.

These states are at risk of going into a downward spiral in the next recession. The burdens will remain but too many of the providers—employers in the private sector—might shrink or decamp. Why add jobs in a state that asks each productive worker to carry not just his or her own weight but also the weight of one other person?



Anonymous said...

That's a scary chart. The map is, too. It reminds me of a map that was posted a few weeks ago about welfare states.

Anonymous said...

The eastern shore is also a death spiral area,people come here to retire and die not much else to offer.

Anonymous said...

6:55 - unfortunately, there are no 'real' jobs on the Eastern Shore....if you are not affiliated with the good-ole-boy / good-ole-gal networks, you can't get one of the few 'paying' jobs at the colleges, hospitals, or chicken companies.... the folks that have those jobs generally aren't here for the Eastern Shore lifestyle - they're simply using the resources here till they've built up their egg...and then they're gone!