Forbes Publishes List of 11 Death Spiral States
Kyle Becker | On 29, Nov 2012
Forbes has published its list of 11 “death spiral” states, which are states that people with any instinct of financial self-preservation might do well to steer clear of in the next few years. These are states whose “takers” outnumber the “makers”: meaning not only net welfare and entitlement recipients, but also public sector workers and those people generally dependent on the confiscatory power of government to make a living.
The taker states are as follows: California, New Mexico, Mississippi, Alabama, South Carolina, Illinois, Kentucky, Ohio, New York, and Maine. There is no connection between blue and red states on this measure.
Referring to these states as the intentionally dramatic “death spiral states” is not to say that people who provide public services in these states don’t “make” anything; but firstly, government workers in general tend to make more than their private sector counterparts, particularly if one factors in benefits. Since public sector workers get their wages from tax revenue, they are dependent upon private sector workers to provide the capital base for their spending and consumption. (And contrary to certain economic mythology, taxation erodes the multiplier effect, meaning it kills the market economy.)
So if you want to look at who is really exploiting “the workers,” let’s factor in governments for a change. Because it’s government that allows the takers to exploit the makers.