In many states, the right kind of austerity is being implemented, such as low or no state income tax and union reforms resulting in less cost to the state and a declining union presence and influence.
States following the wrong path are losing a productive populace and facing higher borrowing costs. Their day of reckoning will come and they’ll have to do the right thing, but only when there is no other choice.
I’ve looked at Estonia. It would be a very nice place to live. Quite a nice place indeed.