Kentucky and 10 other States in Death Spiral?

Forbes Magazine named Kentucky, along with 10 others, as "states with business climates so bad they're in a death spiral and are danger spots for investors."

Of the 11 states with the worst business climates, New Mexico topped the list, followed by Mississippi, California, Alabama, Maine, New York, South Carolina, Kentucky, Illinois, Hawaii, and Ohio.

Forbes Magazine based the findings on a number of factors including:

- the number of private sector employees in a state;

- the combined number of state, county, and city employees currently working or retired;

- the number of state Medicaid recipients;

- a 1 person value for each $100,000 dollars of unfunded state pension costs;

- a state's credit-worthiness based on its amount of debts;

- an uncompetitive business climate;

- weak home prices;

- and bad trends in employment. 

According to the Forbes article, the 11 states listed above "can look forward to a rising tax burden, deteriorating state finances and an exodus of employers." This is not a pretty picture for the future of Kentucky, nor is it a new revelation for the folks in Frankfort.

It is not new information because a similar report on Economic Freedom was written in October 2008,  titled "Index points finger at Kentucky's economic failure."

The report pointed out that "Nearly 80 percent of American states have more economic freedom than Kentucky — a fact that could prove to hamper the commonwealth’s prospects for economic growth." Overall, Kentucky had the 9th most "obese government", and was the 8th worst state in the country in the "welfare spending category."

In the first Economic Freedom Index report, issued in 1999, Kentucky ranked 29th on the economic freedom index. But by 2004 Kentucky dropped to 39th, and by 2008 fell to 40th. And where is Kentucky today? Based on the most recent report which came out on November 28, 2012, Kentucky has now dropped to 46th, to capture the 5th worst rating in the nation.


Frankfort has known the primary problem in Kentucky was not a fat government, but an OBESE GOVERNMENT. They created the overweight behemoth and continue to let it run wild, feeding at a trough with an endless flow of  Kentuckians' tax dollars.

But all the blame does not lie solely at the feet of government. Because in the end, it was "we the people" who elected them, and who then sat quietly by, and did nothing as the state eroded economically.

As Kentuckians, we can no longer afford to sit on the sidelines. It is time for us to take action together, not only to improve our government, but also our state; for ourselves, but more importantly, for our children and grandchildren.