Last year, Forbes Magazine published an article in which the writer identified 11 U.S. states in which there are more people on welfare and and other government programs than those who are employed. Although the focus of the article was in regards to where he advised people to invest their finances, the article was also a wake-up call about states that are what is referred to as being in a death spiral.
The 11 states included:
* Alabama
* California
* Hawaii
* Illinois
* Kentucky
* Maine
* Mississippi
* New Mexico
* New York
* Ohio
* South Carolina
The calculation was based on the number of people in those states who were dependent on Medicaid, TANF (Temporary Assistance for Needy Families) or food stamps (officially known as the Supplemental Nutrition Assistance Program or SNAP), vs the number of people who were gainfully employed.
The Problem
Despite the fact that the numbers may overlap due to the amount of people on more than one government program, the fact remains that these states do have higher numbers of people who receive government benefits. The big issue in these states is that as the number of people on government programs rises, so do taxes, and the number of people and businesses moving out of the state also increases.
These states also suffer from weak home prices, negative employment levels, and business climates that are just not competitive for small business and entrepreneurs who want to set up business, or for professionals looking for good areas in which to consider for the best career opportunities.
https://blog.lowincome.org/2014/01/top-states-with-most-amount-people-welfare.html#.Us6idPscp2A
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