The more progressive (i.e. left-wing) a state’s policies the more likely the state will get into big financial trouble, Glenn Beck opined on his TV show.
Obviously a tsunami is going to put basically everyone under water and, as you’d expect, the greatest crisis since World War II means that right now 48 states are in trouble. But there’s a big difference between states that will almost always be at risk for going under water and then those that are better able to weather the storm. And that is based on how progressive their policies are.
Progressive policies include progressive (meaning the more you make, the higher percentage you pay) taxes and other anti-business practices, he said.
These states not only heavily tax the rich and spread the wealth, but they also spend like times are always going to be good. They don’t have rainy day funds that can help them get through tough times.
Soak-the-rich states need fat economic times to continue or they can’t function. But when they run out of money, they can’t borrow it from the Federal Reserve Board or start running the printing presses. Their ability to borrow money from foreign investors (such as China) is much more constrained that the federal government’s ability to borrow from overseas. States have to issue promissory notes (IOUs) which allow them to turn their creditors into involuntary bondholders. (Couldn’t that be expropriation without proper compensation?)
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