5 States are drowning in debt

According to the previous governor of Indiana, the richest state in the country might be Connecticut in terms of per capita but it has actually racked up a debt of a huge size which is worth more than about 53 billion dollars. As a result it could be the taxpayers who are forced to bail out of the constitution of the state. On Thursday, Mitch Daniels who is a Republican stated during an interview with Stuart Varney of Fox News stated that first the taxpayers who have already laid siege to in some of these states that are drowning in debt. It is not only the state of Connecticut that is drowning in debt but also the states of Illinois, California, New York and New Jersey are in the same condition. These states are not able to pay pension amounts to the government employees who are retired.

For example, in the state of Illinois, vendors are actually waiting month after month to be paid by the government which is at the present drowning in debt of about 30 billion dollars. Also, the states whose bonds are marginally one notch above compared to the status of junk bonds. This is as per Republican Mitch Daniels. He also added that the total debt of the state of New York is more than about 356 billion dollars and on the other hand, the debt of New Jersey is about 104 billion dollars. The state of California is basically leading among all the states with a total debt of more than about 428 billion dollars.

Mitch Daniels also mentioned that these are just a number of states which includes some of the biggest and the top states of the United States of America that are completely drowning in deep water of debt. Daniels is of the viewpoint that the present debt in which these states cannot be retrieved. He said that these debts are irretrievable and added that the pensions form the core part of this situation. Daniels also stated that it is not just the fiscal recklessness that these states have practiced but in some of those cases, the bills are genuinely not payable. He said that very likely the debt will not be falling on the taxpayers of the state. However, Daniels issued a warning that some of these states need to be very cautious about increasing taxes that are already high which would not be very likely to come close to the debt that they have already racked up.

December 08, 2021 - 04:50
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