A startling economic condition grips several American states, revealing a state of bankruptcy not just in cities and towns, but across entire regions despite past wealth. California, once boasting the fifth largest economy in the world, surpassing all but four nations, now ranks seventh and is in clear decline. This free-fall is not unique to California; other states are also struggling to raise funds to sustain their systems. During prosperous times, government figures, especially in California, spent recklessly as if there were no tomorrow. Now, facing economic downturns, states like California and New York are projected to lose significant portions of their populations—800,000 people each in 2018 and 2019— as residents migrate to states with better job prospects and lower tax burdens. Illinois, in the heartland, is another stark example, losing 647,821 people between 2010 and 2017 due to high taxation, equating to the population of its four largest cities outside Chicago. High tax rates deter businesses from staying or expanding in these states, driving economic decline as companies relocate to more profit-friendly environments with low or no state income taxes. This internal migration exacerbates the financial strain, pushing these states further into economic distress.

In recent years, we have witnessed the alarming trend of individual city bankruptcies across the United States. Detroit has been a prominent example, frequently highlighted for its financial struggles, while other cities like Fresno and Modesto in California, along with areas in the central plains of California, have teetered on the brink of similar economic collapse. Detroit, once a powerhouse alongside Pittsburgh in generating vast wealth through automobile and steel production, has not fully recovered from its bankruptcy burden. However, more sensible management of income and outflows, driven by citizens willing to oppose liberal spending policies, has led to some progress in the city. The issue of bankruptcy extends beyond cities to entire states, caught in a swamp of profligate liberalism. States such as California, New York, Massachusetts, Connecticut, Illinois, and New Jersey, once dream destinations for many, are now experiencing significant population losses due to economic decline. California alone, which once boasted of being the fifth largest economic population in the world, has dropped to seventh and continues to decline rapidly, losing 800,000 residents in 2018 alone. Similarly, New York State is projected to lose an equivalent number of people. These financial struggles, compounded by high taxes, are driving massive internal migration within the nation, as people seek refuge in states with lower tax burdens and better economic prospects.