Skip to comments.Meredith Whitney’s 7 Best States for Business and Economic Growth
Posted on 06/05/2013 1:20:06 PM PDT by Hojczyk
Specifically, Whitney says central corridor states Texas, Oklahoma, Indiana, Colorado, Utah, North Dakota and Montana are best positioned for fast economic growth and population migration.
What these states have in common are low taxes, pro-business policies, low population density (meaning lower housing costs, shorter commutes and better quality of life) as well as strong and stable balance sheets, especially relative to other states.
Regardless of whether the fiscal prudence of central corridor states was the result of serendipity of good planning, the reality is these states dont have the financial burdens now crushing the housing-boom states, she writes.
As a result, these central corridor states are in a position to keep taxes low while also spending on infrastructure and education, all of which will make them more attractive to both U.S. and foreign corporations looking to relocate.
On the other hand, Whitney is very skeptical on prospects for states that overspent during the boom and now face huge budget shortfalls plus falling tax revenues after the housing bust.
Illinois and New Jersey are the worst because they've been doing it the longest, Whitney says, adding Michigan and California to her list of bad state actors. They spent as if the good times would never end and made big promises to state and local government employees based on the deliberate bet that they wouldnt.
In 2009, for example, state and local government spending was 25.3% of Californias GDP and 25% in New York, which compares unfavorably to just 9.7% in Texas.
And now, these states are being sucked into what Whitney calls the negative feedback loop from hell.
One thing really threatening certain states is the power of the 1%...[this group] is being tempted into more tax favorable, more biz friendly states
with higher social services and better infrastructure, she says.
(Excerpt) Read more at finance.yahoo.com ...
Hey Meredith my girl, I’m still waiting for your prediction that fifty and a hundred counties, cities, and towns in the United States would have “significant” municipal bond defaults, totaling “hundreds of billions” of dollars in losses, and that this would be “something to worry about within the next 12 months”, to come to pass....
You said that over a year ago.