Fiscal Death Spiral in the Palmetto State?

December 5, 2012 11:34 AM0 commentsViews: 697

Fiscal Death Spiral in the Palmetto State?The Palmetto State caught-up in a fiscal “death spiral.”?

by 

Like many of you, I was surprised this week to hear that our great state was listed on a Forbes Magazine list of states caught-up in a fiscal “death spiral.” While those of us who deeply love South Carolina, as I do, have an immediate response of incredulity, this classification should make us stop and ask the question: Why?

While I certainly disagree with any categorization that would attempt to lump California and South Carolina into the same camp, I do believe there are merits to this Forbes report that ought to guide public policy in the Palmetto State in the years to come. In fact, many of the pro-growth policies folks like Governor Mark Sanford, Senator Kevin Bryant, Senator Lee Bright, Senator Larry Grooms, yours truly, and others, have been advocating for years would go a long ways toward reversing these negative trends.

First, let’s look at two of the primary criteria pointed out in the Forbes report that classifies a state as in a “death spiral.” The first is high levels of dependency on government programs for personal income, and the other is high levels of state debt that threatens the state’s sovereign credit rating.

Both are true in South Carolina, but largely for the same reasons, and they aren’t the same reasons that California is on the cusp of an outright implosion. While states like California and Ohio are in the “death spiral” due to collectivist economic tendencies, like heavy unionization of both the public sector in addition to the private sector, South Carolina has high dependency due to high unemployment. This unemployment is the direct result of two critical issues:

  1. a failing public school system characterized by too much bureaucracy, too little accountability, and too little choice for parents and children
  2. a misguided policy of targeted tax incentives that don’t achieve the economic results so often promised.

Read more >>


Tags:

Must See Video

Published on Jul 18, 2012 Missed New Order's exclusive 2012 Berlin concert? Never mind — we brought cameras! Watch the legendary Manchester Band perform their hits 'True Faith', '586', 'The Perfect Kiss', 'Blue Monday', and 'Temptation' as well as Joy Division's classics 'Love Will Tear Us Aparat' and 'Transmission' live at Tempodrom Berlin — 44 minutes in total. Learn more at electronicbeats.net — Watch more New Order videos over at our YouTube channel: youtube.com/user/ElectronicBeatsVideo

Uploaded on Sep 9, 2011 Dave, on stage the best frontman in the world....................and singers/dancers++++++++++++++++++smack!!

Colette Harrington Schworei and Lin Bennett, radio talk show hosts based in Charleston South Carolina. Cutting edge conservative commentary served up Southern style.

Recent Comments

  • Jim Spencer: This man is a true loss to honesty needed in Government and …
  • nctenther: Of course this would not have anything to do with the federa…
  • JUSTME: What is wrong when this idiot Republicon speaks? As usual,…
  • JUSTME: Seems like the Republicons are out to do away with the tran…
  • C-Ann-C: Why do most of these articles pertain to America as being a …
YOU MIGHT ALSO LIKEclose