A writer at Forbes Magazine has identified a phenomenon called the “death spiral states.” Sounds intimidating, right? Fox Business Network’s Melissa Francis broke down what you need to know on America Live today.

The category includes 11 states where private sector workers are outnumbered by people who are dependent on the government. That number would include state workers, and people who are receiving welfare or pension. For example, in California the ratio of “takers versus makers” is bigger than one. If you own

a software company that employs 100 people, you’re supporting 139 other people in the state who are on the “takers” list.


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Credit worthiness was the second factor worked into this equation. To calculate that, Forbes looked into large debts, uncompetitive business climate, weak home prices and unemployment trends for each state.

So what’s the takeaway? If you live in one of the states on the list, there are things you can do such as rent instead of buy a home.

New Mexico ranked at the bottom of the list, with 153 takers for 100 workers. For the full “death spiral” list, check out the clip below!


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