A new IGM Forum poll of economists finds large, confident majorities who think US states are (a) understating pension liabilities and (b) at risk — at least some of them — of eventually needing a combo of austerity budgets, a federal bailout, and/or default unless they soon increase taxes, cut spending, or change their pension systems.
Now this post really isn’t about pension liabilities. It is about how in the survey of these economists one state repeatedly received special mention for its fiscal woes: Illinois.
But the Prairie State has lots of problems, in addition to government making promises it can’t reasonably keep. The US Chamber of Commerce recently looked at the difficulty of starting a business in different cities. I choose Dallas and Chicago. As you may know, Texas has been a leading state for job creation, Illinois not so much — as this chart shows:
So how do Dallas and Chicago compare on the regulatory ease of starting a business? Here is Chicago:
And here is Dallas:
How to fix Illinois? Spend and regulate less would seem to be a smart start.