Although many states are hurting financially, the states with the biggest financial problems are the “blue states” like California and New York whose Democratic state legislatures with their liberal policies have brought them to the verge of ruin. Michael Gerson describes the problem and suggests that they point to a crisis in liberalism:
Most significantly, the blue-state financial misery continues and deepens the ideological crisis of American liberalism. Few politicians in traditionally liberal states now speak about the expanding promise of progressive government and the welfare state. New Jersey is already in conservative revolt. New York’s Democratic governor-elect, Andrew Cuomo, campaigned on a promise of budget cuts without tax increases. The New York congressional delegation shifted significantly in a Republican direction. While California remains in denial – even after a budget crisis that has lasted for a decade – that could rapidly change as well. It may be Democratic governors who are forced by economic reality to limit the size and ambitions of government, delivering a body blow to liberalism itself. If progressive activism can’t survive in these places, it will be difficult for it to survive anywhere.