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      You are here: Home > News Center > Industry news > Details
      Financial Crisis 2011
      Published date: 22/07/2011

      In recent days, massive protests by government workers in Wisconsin and Ohio have brought the nation’s debt problem sharply into focus. Here are the top ten States in the worst financial condition.  The list will surprise you.  And prepare for a shock – South Carolina is on it.

      Many States face bankruptcy (Note 1), weighted-down by the generous pension and benefit costs of government workers.  This, on top of other reckless spending, has made a bad situation worse.  All States (except Vermont) have constitutional requirements for balanced budgets, so extraordinary measures to cut costs and raise revenues are being undertaken across the nation.

      It is no coincidence that Wisconsin and Ohio have emerged as the first States to face their unionized worker problems head-on.  Of all fifty States, Wisconsin and Ohio are in financially the worst shape in this regard.  This is surprising because California and New York are most often held up as the worst examples of fiscal bloat and excessive debt.Protests by government workers in Wisconsin and Ohio are reminiscent of the widespread protests that engulfed Europe for much of last year.  Fiscally unsustainable wage and benefit policies compelled several European countries to enact tough cutbacks for unionized workers.   It was inevitable this problem would come to America.

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