Everyone’s Moving Away
- Posted by Jeff Carter
- on January 11th, 2013
Ace pilot Chuck Yeager used to say, “Never wait for trouble.”. Barry Ritholz tweeted this early this AM and I thought it was pretty meaningful in a macro sense. Check out which states are seeing increases in childbirth, and which aren’t.
People are leaving the less fiscally sound states for other states that are in better fiscal shape. They are also starting to follow jobs. Job growth in states like California has been anemic compared to states like Texas. Or, my wife postulates that maybe liberals are simply not reproducing, and they will eventually die off.
There are two ways for states to get out of the mess they are in. They can tax their citizens. Illinois, California, Maryland and others are trying this. Or, they can try to increase economic growth to try and generate tax revenue. States that take the second tactic must also decrease government spending, and change the way they pay government employees. Indiana successfully made the switch. Wisconsin and Michigan are attempting to move in that direction. Although, Detroit is such a mess people are simply fleeing Michigan.
Long term trends for states that aren’t increasing their populations are not good. The productive classes are leaving. That leaves behind the very wealthy, and the people on government assistance.
Where do you want to be in ten years?
thanks for the link Instapundit.
tip of the hat to Ace of Spades.
Added: Just saw today where LA guv Bobby Jindahl floated an idea to end income tax. He is approaching trouble from a pro-growth perspective. Scott Walker in WI wants to phase out income tax as well.
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Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...)