ABC NEWS Business Unit Nov. 3, 2008—
Hat Tip: B5 who lives in Alaska. He suggested that I “Check out this article and then tell me why you aren't considering moving to this great (Republican) State.”
In March, Five States Were in Recession; Now There Are 30, With 19 More at Risk
No state is immune from falling into a recession, except for one: oil-rich Alaska.
What started out as a housing problem in a few states has now exploded into a full-fledged recession, with a majority of states now in or dangerously close to recession.
At the end of September, 30 states were in recession, according to Moody's Economy.com. Back in March, only five states were in recession: Arizona, California, Florida, Michigan and Nevada.
The just leaves one part of the country -- Alaska -- with a still-expanding economy. (The District of Columbia, with its government and government-related jobs, also still has an expanding economy.)
"There's no way around the map. It says the nation is in recession. The recession is coast to coast," Mark Zandi, chief economist and co-founder of Moody's Economy.com told ABC News recently. "One of the unique features of this downturn is how broad-based it is, regionally."
What happened between March and today?
"The job market has eroded measurably and industrial production has weakened sharply in the last couple of months. Those are the two key things. The other thing is that retail sales have also sharply weakened," Zandi said.
The one bright side is part of the middle of the country. Agriculture and energy are still strong and providing jobs.
"The exception is the part of the country between the Mississippi River and the Rockies, which is still doing pretty well," he said. "High farm prices are good if you are in Iowa. High oil prices are good if you are in Houston."
Peter Morici, an economics professor at the University of Maryland, said a decline in manufacturing is really hurting the Rust Belt. That said, the economy still is very regional and industry-specific.
"The state governments are an exercise in irresponsibility. Through the property boom, they enjoyed the increase in people's assessments," Morici said. "They are just not structured to handle the cynical movements in their revenue the way they should be.
"Just like companies, municipalities can behave irresponsibly in good times, not shore up any money for bad times and then go crying to the federal government when they need cash," he added.
Read the entire article here: Recession Nation: 49 States at Risk
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20081103 Recession Nation: 49 States at Risk By Scott Mayerowitz