Skip to comments.NJ faces another credit rating slash: S&P (Nail in Christie's Coffin)
Posted on 06/03/2014 5:52:42 AM PDT by C19fan
New Jersey could be downgraded again because of its growing budgetary imbalance and underfunded public pension, Standard & Poor's Ratings Services warned on Monday.
S&P had already cut the state's rating to 'A+' in April. Wall Street's two other main credit rating agencies soon followed in slicing the state to a single-A rating. That put New Jersey among the three lowest-rated states, along with California and Illinois.
(Excerpt) Read more at cnbc.com ...
An important statistic to remember in New Jersey is that something like one out of every seven workers is employed by the public sector. Based on this, I'd say there's a good chance that at least 50% of the state's residents have an immediate family member working for the government -- which is why the solutions to so many of the state's problems are politically untenable.
The pharmaceutical industry came to New Jersey because New Jersey was once the location of America’s chemical industry. New Jersey had the raw materials and expertise that was conducive to the manufacture and development of drugs. In the 1960s and 70s the chemical industry was largely shut down due to environmental regulations. Now there is no actual real need for big pharma to stay and they too are leaving taking their well paying jobs with them. Today government workers in New Jersey have far better pay packages and benefits than the private sector workers who ostensibly support them. That private sector continues to contract. What has happened in New Jersey, is happening all across the United States. EPA rules and regulations are severely inhibiting the private productive sector.
Sounds like Minnesota.
State government is among the largest employers...
At some point during the negotiations of the yearly budget during his first year in office, Christie made a tactical political decision to not take on the entrenched rentiers of the state budget. He chose to bluster his way through the next two years of state budget negotiations and the short term decision making he made in April/May of 2011 has in the long term ended his political viability, both as a lame duck Governor and as a potential Senator/US Attny Gen/VicePresident/President.
He will fade into private practice and try to build up his personal wealth, just as Pataki did after leaving office.
Fat boi has the highest state taxes in the US. NJ is still broke. The DemocRat has no clothes.
This told me everything I needed to know about Christie’s willingness to be ‘bipartisan’: