Maybe
you’re looking for a fresh start. Or perhaps you’re looking to find a different
job, or you’re trying to get out of the city. Whatever the case may be, when
you’re looking for a new place to live there’s a lot to consider. And if you’re
thinking of crossing state lines to find a new home, there’s one vitally
important detail that you need to think about and research.
Most
people don’t consider this, but you should really look into the financial
stability of any state that you’re thinking about moving to. If worse comes to
worse, and the economy collapses, you want to make sure that the state you live
in is fiscally responsible. States that have high debts and low credit ratings
are living on the edge. Any major economic event could push them into bankruptcy.
That
means pensions could go unfunded. Public services like law enforcement and
firefighting would be understaffed. The infrastructure of the state would
crumble, and public education would be decimated. Taxes would likely be
increased, which would only exacerbate the financial problems of the state
because businesses would leave, leading to more unemployment and a smaller tax
base. Obviously, all of these factors could contribute to the risk of civil
unrest.
In other
words, any financial calamity that occurs at the national level, would be
magnified at the state level. The economy of these states would fall into
a tailspin, which would make life for the average person exceedingly difficult.
So which
states should you avoid? There are three factors you should look out for.
There’s the amount of debt as a percentage of the state’s GDP, the amount of
debt per person (debt per capita), and the state’s current credit rating.
The 10
states with the worst debt to GDP ratios are:
- New
York-22.71%
- South
Carolina-21.31%
- Rhode
Island-19.40%
- Washington-18.83%
- Florida-18.65%
- Kentucky-18.50%
- Illinois-18.45%
- Connecticut-17.52%
- California-17.18%
- Pennsylvania-17.17%
The 10
states with the most debt per person are:
- Massachusetts-$11,337.63
- Connecticut-$9,297.33
- Rhode
Island-$8,919.27
- Alaska-$8,516.41
- New
Jersey-$7,517.15
- New
York-$7,040.97
- Hawaii-$6,194.64
- New
Hampshire-$6,152.00
- Delaware-$5,962.86
- Vermont-$5,259.69
And
perhaps the most important factor is the credit rating of any given state. This
gives you a good idea of how investors think a state will fare financially in
the future, as opposed to a state’s current financial woes. According to credit
rating agencies like Standard and Poor’s, as of last year the states with the five worst credit ratings are:
- Illinois-BBB
- New
Jersey-A
- Kentucky-A+
- California-AA-
- Connecticut-AA-
Though
those ratings don’t look too bad, it’s important to keep in mind that those
states have had sub-par credit ratings for a long time. There’s no indication
that they’re going to get their act together any time soon, because they’ve
been teetering on the edge for years. When the next wave of the economic
collapse hits, these states (along with states that topped the first two lists,
such as New York, Rhode Island, Massachusetts, South Carolina, and Connecticut)
are going to be the first to feel the pain.
Think of
it like this. If a storm arrived and threatened to flood a community, the homes
that were built in low-lying areas are going to be underwater first. These
states are like the houses near the river. So if you’re planning to move, look
into the financial stability every state you’re considering, and seek higher
ground.
Joshua
Krause was born and raised in the Bay Area. He is a writer and researcher
focused on principles of self-sufficiency and liberty at Ready
Nutrition. You can follow Joshua’s work at our Facebook page or on his personal Twitter.
Joshua’s
website is Strange Danger
http://readynutrition.com/resources/dont-move-to-these-states-theyre-in-serious-financial-trouble_11042017/