Why Do States Go Bankrupt?

All states are having monetary problems these days…especially California and then the rest of the country……but why are they in such sad shape?

Revenue!  There is your answer.

The recession has taken a devastating toll on tax revenues and state finances. States had a cumulative $121 billion budget gap in crafting this year’s budgets — and the gap would be even bigger without federal stimulus money, said Todd Haggerty, a research analyst at the National Conference of State Legislatures.

States, these days, have little income.  Why?  They have given away everything to corporations on the promise of economic growth.  These promises are empty, at best.  In my state the governor has given massive tax breaks to corporations to get them to come to the state….employment has not gotten better….living standards have not gotten better…..little has improved…the only thing that these corporations have done is make the resume of politicians look a little better…the worker in the state is still the lowest paid, less benefits and so on…..

The solution to this problem is take back the revenue that the politicians are throwing away.  It is that simple.  The only answer most governors and reps have is to put more burden on the working class, the middle class….while letting others get a free ride.  Also the programs benefit the free riders and the people who are actually paying the bills get screwed.

The best argument that the politicians have is that it is economic growth in the long run that is the target, but it has been a VERY long run and still little is gotten better.

Unfortunately, the voters in these states buy into the BS.  And of course, it is the fault of those people who are helped by the system and never the worthless lame ass politicians they elect…..this is “rational ignorance”.

2 thoughts on “Why Do States Go Bankrupt?

  1. That is so true… Indiana got rid of the inventory tax and the only thing that changed is that residential property taxes increased to cover the difference.

    1. Cutting taxes always gets votes….what people need to know is the consequences of the action…that is seldom discussed.

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