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Debt by State 2023 Shows Some Like it Hot  Thumbnail

Debt by State 2023 Shows Some Like it Hot

The more we mess around, the more we find out. 

I got to messing around in a debate about all the people moving from northern states like New York, Illinois, and Connecticut to soutern states like Florida and Tennessee. 

It only took a few minutes to pull of some data showing the facts. 

The state debt per capita shows the northeast is most in debt per citizen. 

World Population Review says these are the 10 states with the highest debt per capita:

  1. Massachusetts - $10,738
  2. Connecticut - $10,719
  3. Rhode Island - $8,041
  4. Alaska - $7,999
  5. New Jersey - $6,980
  6. New York - $6,809
  7. Hawaii - $6,508
  8. New Hampshire - $5,545
  9. Vermont - $5,403
  10. Illinois - $4,827

Here's a visual with a heat map on the states. 

On the other hand, World Population Review tells us it's the southern states like Tennessee, Texas, Geogia, North Carolina, and Florida, along with some conservative western states like Wyoming and Nebraska that have the lowest debt per capita. 

World Population Review goes on to explain, for example, the details of New York and Tennessee as the states with the highest (NY) and lowest (TN) bebt. 

"New York has the highest debt of any state, with total debt of over $203.77 billion. New York's total assets are around $106.61 billion, giving the state a debt ratio of 273.8%. The main culprit for New York's towering debt is overspending on Medicaid. New York has attempted to fill budget gaps by cutting school aid and health care costs in recent years."

"Tennessee has the fifth-lowest debt in the U.S., having $8.04 billion in total liabilities and $46.54 billion in total assets, resulting in a net position of $39.3 billion and a debt ratio of 17.3%. Tennessee is one of the most tax-friendly states in the country and will have no state income tax by 2021. While remaining low-debt and low-tax, Tennessee has managed to triple its Rainy Day Fund and provide tax cuts to its residents, including a 30% decrease in-state sales tax on groceries."

Some say it's the difference between the north and the south, which seems obvious by the map. 

Others believe it's red (conservative/Republican) vs. blue (liberal/Democrat) state policies that drive the debt. 

Interestingly, the northeast tends to be more blue, and they have the most debt. 

You can draw your own conclusion, but it looks like some states like it hot, and some not. 

Mike Shell is the founder and Chief Investment Officer of Shell Capital Management, LLC, and the portfolio manager of ASYMMETRY® Managed Portfolios. Mike Shell and Shell Capital Management, LLC is a registered investment advisor focused on asymmetric risk-reward and absolute return strategies and provides investment advice and portfolio management only to clients with a signed and executed investment management agreement. The observations shared on this website are for general information only and should not be construed as investment advice to buy or sell any security. This information does not suggest in any way that any graph, chart, or formula offered can solely guide an investor as to which securities to buy or sell, or when to buy or sell them. Securities reflected are not intended to represent any client holdings or recommendations made by the firm. In the event any past specific recommendations are referred to inadvertently, a list of all recommendations made by the company within at least the prior one-year period may be furnished upon request. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on the list. Any opinions expressed may change as subsequent conditions change. Please do not make any investment decisions based on such information, as it is not advice and is subject to change without notice. Investing involves risk, including the potential loss of principal an investor must be willing to bear. Past performance is no guarantee of future results. All information and data are deemed reliable but are not guaranteed and should be independently verified. The presence of this website on the Internet shall in no direct or indirect way raise an implication that Shell Capital Management, LLC is offering to sell or soliciting to sell advisory services to residents of any state in which the firm is not registered as an investment advisor. The views and opinions expressed in ASYMMETRY® Observations are those of the authors and do not necessarily reflect the position of Shell Capital Management, LLC. The use of this website is subject to its terms and conditions.