Forbes labels SC a 'death spiral state'

GREENVILLE, SC (WYFF) - An article on titled "Do You Live in a Death Spiral State?" named 11 states, including South Carolina.

Writer William Baldwin said criteria he used in the article were state's credit-worthiness and the number of "takers" versus "makers" -- with takers being people who take government money for their job, pension or welfare, and makers being those with a private sector job.

"It's not to say we don't have our portion of the poor and retirees but I don't think it paints a completely accurate picture," said Furman University economics professor Tom Smythe.

"I was insulted, quite frankly. South Carolina is one of the top two states in the country for foreign direct investment. The reality is we have a budget surplus."

The Forbes article cites analysis from a money management group known for helping insurance companies manage investment risks, but you have to click on a link and pay for the report

"Any time I can't observe a methodology, I'm a little skeptical about what its outcome is," said Smythe.

Joan Herlong, of Realty, said, "I'm not insulted. I'm amused."

The article suggests when takers start to outnumber givers, taxes get higher and no one will want to create jobs or live in that state.

"There's nothing more local than politics except perhaps real estate. The real estate market here is resilient. It's rebounding. It's terrific. It's a great time to buy a house. So, I'm not sure what Forbes is trying to sell, but it's really not real estate," Herlong said.

A spokesman for the governor said, "Governor Haley is on the front lines of the battle to grow our economy and bring more jobs to our state, and her work is paying off."

Calls to the author of the Forbes article have not been returned.

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