Omega File: Death Spiral States


Do you live in the following states with the following government versus private sector (taker/maker) ratios?
  • California – 1.39
  • New York – 1.07
  • Illinois – 1.03
  • Ohio – 1.00
  • New Mexico – 1.53
  • Hawaii – 1.02
  • Alabama – 1.10
  • South Carolina – 1.06
  • Kentucky – 1.05
  • Mississippi – 1.49
  • Maine – 1.07

If you do, you live in a state on the list (11) that are called Death Spiral States by the economic experts at Forbes, as told by William Baldwin of the Forbes staff.  Mr. Baldwin describes those states as having more “takers” than “makers” or, as I would like to put it – more parasites than there are hosts. They are part of the 47% that Mitt Romney was speaking truthfully about in what was supposed to be a private meeting with campaign donors and supporters. More importantly it is a statistical truth. Yet, in election 2012 voters either did not believe the truth or did not care because as video interviews showed – they were getting a piece of the American pie of government stuff. When asked where it came from – they did not have a clue, most said “from Obama!” Since over 90% of the “black” population voted for Obama, well that says everything.

Mr. Baldwin warns if you live in those death spiral states and own municipal bonds, clean out your portfolio and buy into states like Nebraska and Virginia who are less likely to become like Greece. 
The riskiest of the eleven states are California and New York. Politically, those states, including Illinois have long been a Blue State with a Democrat majority electorate. Illinoisand New York are notable for union and political corruption – a long history.
While the overall economic forecast across America looks dim, these death spiral states are in for some nasty business. Mentioning business, those states tend to chase away business, moving to states with fewer regulations and less taxes, like Georgia, who received an influx of businesses in the 1990s from California, including high tech that made money for California, as much as Hollywood and its tourism. The parasites are killing its host. 
Governor Scott Walker knew of this and began a campaign while nipping the purse strings of Wisconsin labor unions with the slogan: Escape to Wisconsin. All in an effort to provide more employment opportunities in Wisconsin and keeping the cost of government down from eight years of Governor Doyle. He made good his campaign promises, but when government union workers realized they would not get the special benefits (compared to private sector) they had become accustomed to, they literally gathered mobs into the streets. Where were these people when Governor Doyle signed the biggest tax hike in Wisconsin history – hardly one month into his second term?
However, would it be wise to want immigrants from a state those people allowed, through elections, for all this to occur? We can certainly use Oregon and Washington states as an example. Californians, after ruining their state moved to those states and brought their liberalism progressiveness with them. They did not learn from their mistakes. The same thing may be happening in Georgia, specifically Atlanta-Athens area where New Yorkers are trying to escape high taxes, et cetera; but bringing their bad habits with them. Once again, not a clue as to what caused all those problems.
Moreover, is it coincidence that those states listed, the majority electorate voted for Obama for a second term?
Maybe so many people got angry at Romney for his 47% evaluation because it is true.
This is an example of why the Framers of the Constitution insisted upon the limitations of government. Too bad today’s citizens (and those who are illegally so) just do not get it.
Food for thought, and I rest my case.
SEE ALSO:
Real Clear Politics – Great video explanation.
Advertisements