These are what Forbes Magazine calls the Death Spiral States where the Takers outnumber the Makers. “A Taker is someone who draws money from the government, as an employee, pensioner or welfare recipient. A Maker is someone gainfully employed in the private sector.”
When the Takers outnumber the Makers, high taxes are the inevitable result. Eventually Makers and their employers have had enough; they pull up stakes and leave. That makes matters worse for the taxpayers left behind.
The chart at left shows that a Maker in New Mexico is supporting 1.53 Takers. In Texas each Maker supports only 0.82 Takers. Even freedom-loving Texans are approaching a point where Takers may soon outnumber Makers. If so, even Texas could become a death spiral state .
The other result of a lopsided Maker/Taker ratio if that these states have large debts, an uncompetitive and/or unfavorable business climate, weak home prices and bad trends in employment. Illinois is actually in worse shape than the chart shows. While its Maker/Taker ratio is not as bad as some, Illinois has ceased being the “Land of Lincoln” and has become the “Land of Corruption.” Unless you’re part of the Mob, it’s not a good place to invest your money. Illinois has $66 Billion in its public pension funds, and it has $233 Billion in public pension obligations.
California spends $10 Billion each year on entitlements for illegal aliens. This cannot go on forever, and something that cannot go on forever, won’t.