Being a Baby Doesn’t Make You Exempt: Infants Are Born With Debt
Imagine starting off life in debt? Well, this seems to be the case for babies born these days. According to a new study, American babies owe more than $13,000 in state debt as soon as they are born.
The study by State Budge Solutions, a nonpartisan group that is urging state budget reform, discovered that every American owes $13,425 in state debt on average. “For private sector workers who are shouldering much of the tax burden, the amount of debt adds up to well over $37,000 per worker,” according to a Huffington Post article on the study.
The study breaks down the shocking data the total amount of debt facing each state on a per capita basis. Though newborns don’t literally owe the money, it is their share of the debt.
According to Bob Williams, president of State Budget Solutions, the purpose is to highlight how much state debt is costing individual residents. The debt is being used for state spending on everything from roads and schools to state employee salaries.
The state with the highest total debt is California, which owes is $617 billion, according to another study. New York is second with more than $300 billion, followed by Texas, Illinois and New Jersey. The state with the least amount of debt was Vermont, with just $5.8 billion in state debt. The SBA report found that showing that when totaled, state governments are facing debts of more than $4.6 trillion.