by Peter Schiff, SchiffGold:
There is a mass exodus from Illinois.
According to the US Census Bureau, the Prairie State lost a net 33,700 residents in fiscal year 2017. More people bailed out of Illinois than any other state in the US. And based on calculations the folks over at ZeroHedge worked out, the exodus was even worse than the Census Bureau numbers indicate.
Of course, the net population loss masks the true gross outflow of Illinois residents as it doesn’t account for natural births/deaths. Assuming that Illinois has the same natural population growth as the US as a whole (0.7%) implies that the state lost a staggering ~125,000 residents in aggregate, or roughly 1 man/woman/child every 4.3 minutes.”
So, why the big rush to bail out of the great state of Illinois?
The state is a fiscal mess.
Over the summer, the Illinois legislature pushed through a budget that included $5 billion in tax hikes. Even so, the state’s bond rating continues to teeter just above junk status. Moody’s wasn’t particularly impressed with the new Illinois budget.
The $36 billion fiscal 2018 budget and $5 billion income tax increase passed by lawmakers over the extended Fourth of July holiday weekend, may fall short in addressing the state’s financial woes, particularly its huge unfunded pension liability and $15 billion unpaid bill backlog, according to Moody’s. ‘On both those fronts, it’s not yet clear if the legislation being enacted will have a substantial and clear positive effect.”
Apparently, the people of Illinois aren’t impressed either. They’re abandoning ship.
This isn’t anything new. As government officials at every level in Illinois ran finances into the ground, the state’s Ponzi Scheme – otherwise known as its pension system – slowly collapsed. Just consider this selection of ZeroHedge headlines about the Prairie State.
- Illinois Pension Funding Ratio Sinks To 37.6% As Unfunded Liabilities Surge To $130 Billion
- Illinois Unpaid Vendor Backlog Hits A New Record At Over $16 Billion
- The State Of Illinois Is “Past The Point Of No Return”
- “What The Hell Is Going On In Chicago” And Other Highlights From Trump’s Speech To FBI Grads
No wonder people just packed up and left.
In 2011, the powers-that-be in Illinois jacked up taxes 67%. In 2016, Illinois ranked as the state with the fastest shrinking population for the third straight year. According to the Chicago Tribune, Illinois’ population first began to drop in 2014, when it lost 11,961 people. The number more than doubled in 2015 to 28,497 people. It further multiplied in 2016 with a 37,508 net population loss. And here we are today. Make that the fourth straight year.
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