Many US states still struggle despite surging US economy

Many US states still struggle despite surging US economy

Even with the American economy boasting impressive job growth as well as domestic equity markets close to record peaks, a fragmented revival has left many US states struggling to close budget deficits almost a decade after the 2008 financial meltdown.

The broad revival has benefited economically diverse, large states, such as Texas and California, as ratings agencies point out, while those US states, which greatly depend on crude revenues, including Alaska and North Dakota, and those like Illinois, grappling with huge unfunded pension obligations, have faced budget deficits bloom.

It has left those struggling US states with quite painful decisions over tax increases and spending cuts, and ill-prepared to withstand another economic downturn or cuts to federal money, closely connected with the Medicaid program.

Meanwhile, S&P Global has already downgraded up to 11 US states compared to two upgrades since January, last year. 11 states stay on negative outlook, and it means that the ratings agency is assured that more than 20% of US states are facing a real danger of a credit downgrade.

 

 

Similar

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera