State debt

[dmundy]

I thought this was an interesting map.

http://money.cnn.com/news/storysuppl...ebt/index.html

[tfmcmahon]

The most liberal states are the most in debt.That comes as no surprise.A reflection of the D.C.mind set.Three months and counting!

[72Group4]

You may be right on the states... but I think you are using the pejorative "Liberal" a bit broadly. The Clinton administration had almost eliminated the entire US debt with large fiscal surpluses. The Bush administration's tax cuts and spending increases caused massive, unsustainable deficits - it only took 8 years for that administration to turn the U.S. into a fiscal train wreck. That, coupled with the notion that unregulated financial markets were a good thing under both the Clinton and Bush administration led to the mess that Mr. Obama was faced with when he took office.

fyi....it was the Liberal Party of Canada under Chretien that finally balanced the books up here.

As for the states...is there any causality between large tax cuts and persistent deficits??

[tfmcmahon]

"As for the states...is there any causality between large tax cuts and persistent deficits?? ".You can cut taxes and increase revenue to the treasury and it`s been done.It is the spending that creates deficits and neither party has had the guts to deal with the out of control spending.Rather basic! The question is too simplistic to be delt with here.I have no idea what "large tax cuts" mean.You can tax the highest income earners here at 100% and it will not bring down the deficeit at current levels.Read "Atlas Shrugged" and you will find out where we are headed. As I said,three months and counting.

[boxster03]

Good God a Canadian telling us about capitalism

[Eminence Gris]

The most logical way to look at state debt is against GDP. And Alaska has the highest state debt by that measure, at about 70%. California is at about 40%.

The chickens (of decades of anticipating debt would be a problem for the next round of politicians) are coming home to roost.

Similarly, Social Security should have been at a $9 trillion surplus, but Federal debt is at $12 trillion and climbing. At least the Feds can print more money.

[tfmcmahon]

"At least the Feds can print more money" We don`t like to say that anymore as it has negative connotations.We call it quantitative easying.That way when inflation follows the easying,inflation will be a mystery to the masses.

[Vintage Racer]

This is scary!
http://www.usdebtclock.org/

I do not like the growing debt and our Country or our State and local governments.

Yet, that is only one-half of this argument. I studied macroeconomics in college (i.g., the analysis of the nation's economy as a whole). The debt is the liability side of any balance sheet while the asset side should also be studied.

There is now $13.4T in federal debt. There may be another $2-3T in State and local debt. There is also $60T in assets which are owned by U.S. citizens (you can search U.S. personal net worth). The federal government, by my estimates, owns another $100T in assets (interstate highways, millions of acres of prime real estate, etc.).

We are not currently "broke" (why else would a forty year-old early 911S sale for $90K, and an early 911 with race history, go for $400K?)

[Bullethead]

Yet, that is only one-half of this argument. I studied macroeconomics in college (i.g., the analysis of the nation's economy as a whole). The debt is the liability side of any balance sheet while the asset side should also be studied.

You're absolutely right... but it's more politically useful by some, particularly oligarchs, to keep an electorate frightened than allow them to be educated on issues of
importance to the public weal. Otherwise, how could it be so easy to encourage people to take action against their own interests?

Speaking of which, Mr. McMahon: A Canadian thoughtfully discussing capitalism is as natural as certain Americans showing their ass. Positing Rand's objectivist works as relevant to economics is pure sophistry. Don't know who "we" are, but it's "quantitative easing"... there's nothing simple or "easy" about it, but is effective when managed properly. Let's hope that's the case, as controlling deflation world-wide is a goal we should all support.

There are plenty of political sites to troll... this one's for car guys.

[johns4949]

Well Stated