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America’s financial crisis is laid bare as it’s revealed that every newborn owes more than $13,000 in state debt

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  • State governments face combined debt of more  than $4trillion
  • When broken down to a per capita basis,  every American – including babies born each day – owes an average of  $13,425

By Graham Smith

PUBLISHED:07:55 EST, 3  October 2012| UPDATED:07:56 EST, 3 October 2012

The true scale of America’s financial crisis  has been exposed after it was revealed that every man, woman and child in the  country owes more than $13,000 in state debt.

Researchers found that state governments face  a combined debt of more than $4trillion.

When broken down to a per capita basis, this  means that every American – including babies born each day – owes  $13,425.

For private sector workers, who are at  increased risk and shoulder much of the state tax burden, that figure increases  to an eye-watering $37,486 per person.

Already in debt: Every American - including newborns - owes $13,425, according to a study
Already in debt: Every American – including newborns –  owes $13,425, according to a study

The figures were published yesterday by State  Budget Solutions, a nonpartisan organisation pushing for state budget  reform.

Bob Williams, president of State Budget  Solutions, said that the aim of the study is to highlight how much state debt is  costing each resident.

The report calculates total state debt per  capita, per private sector employee, and as a percentage of private sector gross  state product.

In each of the three categories, Hawaii, New  Jersey, and Alaska are among states with the five largest debt  figures.

At the other end of the spectrum, Nebraska  has the lowest total in each of the areas.

STATES WITH THE LARGEST PER  CAPITA DEBT

  1. Alaska – $31,141
  2. New  Jersey – $29,252
  3. Hawaii – $29,062
  4. Connecticut – $27,540
  5. Illinois – $21,067
  6. Ohio – $20,749
  7. Rhode  Island – $17,993
  8. New  Mexico – $16,895
  9. California – $16,386
  10. Delaware – $16,012

The largest per capita debt figure for all 50  states is Alaska, where each person’s share of state debt stands at  $31,141.

New Jersey, Hawaii, Connecticut, and Illinois  make up the top five states with the highest per capita share of the state  debt.

Nebraska, on the other hand, has the lowest  total debt per capita at just $4,249 for each resident. Tennessee, Indiana,  Florida, and Idaho round out the lowest five debt levels per  capita.

Private sector workers are at increased risk  as they are the ultimate tax base for reducing state debt.

Using figures from the U.S. Bureau of Labor  Statistics, State Budget Solutions determined that Hawaii has the largest debt  per private sector worker at $83,815, followed by Alaska, New Jersey,  Connecticut, and New Mexico.

Nebraska again has the lowest total, with  $9,829 in debt for each private sector employee. Indiana, Tennessee, North  Dakota, and South Dakota follow.

State Budget Solutions also calculated state  debt as a percentage of private sector gross state product (GSP). Hawaii’s debt  stands at 79.21 per cent of its entire private sector GSP, the highest  percentage of the 50 states.

New Jersey is again right behind with its  debt representing 59.69 per cent of private sector GSP. Ohio, New Mexico, and  Alaska constitute the rest of the top five.

Nebraska, Tennessee, Indiana, North Dakota,  and Virginia have the lowest debts as a percentage of private GSP.

Read more: http://www.dailymail.co.uk/news/article-2212205/Americas-financial-crisis-laid-bare-revealed-newborn-owes-13-000-state-debt.html#ixzz28HGZ11rk Follow us: @MailOnline on Twitter | DailyMail on Facebook

About Post Author

Ralph Turchiano

I have a strong affinity for the sciences which led me to create my sites. My compulsion for the past decade has been reviewing literally every peer-reviewed research article. Which can easily be validated by following my posts. To me, science is where the real news is, as it will mold our destiny beyond that of politics or economics. 😉 Please feel free to e-mail: 161803p314159@gmail.com
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