The Recession Still Rages In 8 States

Although the recession officially ended more than a year ago, a significant chunk of the country is still caught in an economic tailspin with no end in sight.

MSNBC reports that as of July 2010, Nevada, Michigan, Vermont, Rhode Island, Georgia, Mississippi, Illinois and New Mexico were still mired in the economic downturn the rest of the country managed to ease out of.

Nevada’s got it particularly rough, the story says, sporting a sexy 14.4 percent unemployment rate — seems even compulsive gamblers would rather not lose what little income they’ve got on blackjack — and a housing crisis, with 1 in 84 housing units having received a foreclosure notice last month.

Recession drags on in politically key states [MSNBC]

Previously: Recession Officially Over. Yipee.


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  1. Loias supports harsher punishments against corporations says:

    All states I don’t care much about. My state weathered the recession very well.

    • TheFinalBoomer says:

      How nice for you.

      Empathy fail.

    • ElizabethD says:

      Whatever you think about the affected STATES, might you at least consider that PEOPLE live in those states and are struggling rather terribly right now?

      You sound like a real nice guy or gal.

    • Whtthfgg says:

      Kinda reminds me of this douchetastic article from TechCrunch It essentially says I didnt feel the recession much so it didnt exist right??

    • Phineas says:

      Except, it does effect you. From your neighbor’s business that is not recovering as fast because they do business across state lines with these states to your grandfather who will give you a smaller inheritance because he needs to supplement your print journalist nephew’s unemployment checks.
      Oh, and don’t forget your friend from college who thinks you are a smug, lucky asshat because he didn’t PERSONALLY weather the recession very well.

    • MeowMaximus says:

      Well, while you’re sitting on your yacht sipping champagne and eating foie gras, the rest of us are still struggling to make ends meet. The recession is NOT over – this is bullpuckey. People are still struggling to hold on to their jobs and homes.

      I guess “Loias” must be a synonym for unsympathetic jerk…

      • Loias supports harsher punishments against corporations says:

        I fall into the lower middle class category. I struggle as well. I don’t live paycheck to paycheck because I save a good chunk of my funds, but that doesn’t mean losing my job wouldn’t be devastating. I try to live below my means. Why do you feel the need to paint me as some billionaire?

        • MeowMaximus says:

          Perhaps your condescending attitude that since things are going well in your state (or so you perceive) that what is happening in other states doesn’t matter. I happen to live in a part of the country that is, on the whole, doing fairly well – but I still have friends and acquaintances in this state and others who are hurting. Also, what happens in other states DOES matter a lot, since our economy is so interconnected. Don’t be so damn smug, just because it hasn’t hit you personally yet.

  2. Sparty999 says:

    Michigan thanks you for your compassion… douche

    • Loias supports harsher punishments against corporations says:

      Michigan’s largest businesses still owes me loan money.

      • TheFinalBoomer says:

        Does this mean you’re not “weathering” well? I am sooooo sorry!

      • pop top says:

        It’s so funny how everyone takes the bailout so personally. It’s not your money, it’s the government’s.

        • c!tizen says:

          I don’t mean to rag on you, but where exactly do you think Uncle Sam got that money from? It was called a “Taxpayer Bailout” for a reason.

          • pop top says:

            Here’s the thing: Once you pay taxes, it’s not your money anymore, it’s the government’s. Of course you want to see them spent on what YOU want, but that’s not always feasible. My point is that I find it sad that there are people who think that they personally own a part of GM (or whatever company) because it was THEIR tax money and if GM is doing poorly, it’s a personal affront to them.

            • Loias supports harsher punishments against corporations says:

              I don’t think I own part of GM, I understand that it’s not my direct money.

              But, whether the government uses my money well in poorly directly effects me and my countrymen. Being in a deficit lowers our dollar value here and abroad, as well as requires me to pay more in taxes to cover that.

          • danmac says:

            I always thought they just printed more or made that negative number next to the national debt higher…didn’t you know no one pays taxes anymore? Silly :)

      • Gulliver says:

        No they don’t. But thanks for playing. The LOAN has been paid back, The government currently has an equity stake in two companies. That is NOT a loan. based on your idiot logic, any person who takes out a SBA loan, student loan, FHA mortgage, VA loan, a loan from a credit union where you are a member, or from any company you may own a miniscule share of even through a 401k owes YOU money. Get over yourself. You aren’t that important.

        • Loias supports harsher punishments against corporations says:

          No one said I was. But what makes the auto industry so important? Businesses should succeed or fail based on their ability to run a company, or run it into the ground.

          Also, the loan hasn’t been paid back. Only one company claimed it had, and after that CEO left and a new came in, he retracted that statement. It was on Consumerist. Having an equity stake doesn’t mean much if the government isn’t willing to use it, which they have clearly have stated they have no intent to act like a controlling member of the business. They will be a silent partner, so to speak.

          So, as unimportant as I am, at least I took the time to learn about the issue.

          • pop top says:

            “But what makes the auto industry so important?”

            It’s not necessarily that it’s the AUTO industry, but that it’s an industry that employs a lot of Americans in many different industries and would’ve totally wrecked the economy. There would’ve been thousands and thousands more unemployed, just a complete disaster.

            • Loias supports harsher punishments against corporations says:

              Gulliver’s comment “Get over yourself. You aren’t that important.” is quote ironic, because I guess what I’m saying is that the U.S. needs a reality check they THEY aren’t that important either, and a nice economy reset would have done that.

              This reality did do that a lot. I read several articles where people were spending less, buying less “things” and spending more time with people, and were actually happier with less.

              • pop top says:

                You think an entire industry shutting down is an “economic reset”? While I agree that this has been a good lesson to people about saving money, buying less stuff and being an all-around smarter consumer, I can’t agree that letting hundreds of thousands more people lose their jobs would have been a good idea. Also, it’s a little hard to take you seriously when your first comment basically dismissed a huge section of the US population simply because they live in a state you don’t care about.

                • Loias supports harsher punishments against corporations says:

                  I was referring to the banking industry as well, since we also bailed them out. And it’s not so much they we bailed them out, but that companies don’t seem to have learned anything worthwhile from the whole experience. And that they never do.

                  The first comment was a /snark.

                  • rupert says:

                    The automakers who took government money, GM & Chrysler…. DID go through bankruptcy and DID manage to get union concessions because of it. Ford is ‘doing well’ but mortgaged everything for the line of credit they have & could NOT get the union to budge recently. This is the model the banks should have gone through, wipe out the stock & all stake holders, refloat as a new company.. If General Moters had been forced into liquidation, you & I would have a much deeper financial liability in funding the defunct pensions of half of the midwest. I don’t understand why so many hate on the auto industry ‘bailout’ when so much more was simply HANDED OVER to the banks (who produce NOTHING) without ANY reprecutions to those who caused the problems in that industry (they all kept there ill gotten gains). I have no love for the auto industry & the self imposed issues, but this bailout was handled well and it seems to get more complaining then the banking bailout that is nothing but socializing risk while still leaving the profit private… /end bitter rant

                    • Loias supports harsher punishments against corporations says:

                      You assume I don’t feel the same about the banks. I do, probably more so. But the string started with a comment about Michigan.

      • TheSpatulaOfLove says:

        Clueless Palin-drone.

        If you think at all it was a good idea to let ANY automaker go down, you have no idea of what that ripple effect would have done to the rest of the automakers, let alone the economy.

        • Loias supports harsher punishments against corporations says:

          I’m aware of the potential consequences. But, there was no guarantee that a bailout would have resulted in a complete dismantling of the auto industry in the U.S. They had other options. But the bailout allowed them to remain the way they are, which clearly didn’t work exceptionally well. Had they all filed for bankruptcy they could have removed union labor issues that were strangling them, bloated salaries, and restructured to fit the new America. But now they are pretty much the same.

          Or maybe they would all just go away. Change in inevitable, and is difficult to ever know whether it will be good or bad. I just happen to not fear change. We’re resilient enough to weather through it.

          • TheSpatulaOfLove says:

            And again, you are completely wrong about the auto industry.

            Other than being an arm-chair captain of industry, what experience do you have in dealing with the auto industry?

            As a major vendor to Big 3, other automakers and suppliers, as well as a resident of Metro Detroit, I can tell you first hand how much it has changed.

            First, in the line of purchasing, business unit synchronization has dramatically improved, as have assessments of needs and focus on return on investment. The bid process is more aggressive (as if it wasn’t already), and the due diligence is some of the most detailed I have seen in ANY business I’ve worked with.

            Next, you cite high cost labor – do you even know what laborers make? The same old story that Union workers make boatloads of money is dated. Long term employees are hovering $60k, while newhires are making $30k. I don’t see how that’s bloated at all and I don’t see how it’s fair to ask someone to take a massive pay cut after 20 years of service because some arm-chair captain of industry such as yourself thinks he makes too much money.

            Finally, your general malaise towards their existence is very short sighted. What you don’t realize is that the automakers are involved in much more than just the cars you see on the street. You forget that they play a major role in military development, transportation, shipping, etc. Letting them ‘just go away’ would mean MILLIONS of jobs shipped overseas, as you would also see the collapse of the supplier infrastructure, which would then mean OTHER manufacturers, not necessarily directly tied to the auto industry would also grind to a halt.

            If you think America is resilient enough to handle that, then you obviously have your head in the sand.

            • Loias supports harsher punishments against corporations says:

              Sadly, jobs are already going overseas. Further, studies were done and research conducted, and I think Toyota came out on top for which car company was most “American.” This based on how many aspects of a car’s parts and labor are produced in the United states versus elsewhere. My notions of union labor in the industry is based on news reports. And I mean extensive reporting, not the local news or Fox. If you think those are inaccurate, then we have other issues to discuss.

              The U.S. also trails other countries in emerging markets. We’re old, we’re slow, and not easy to change. We already seem to have our heads in the sand about a great many things.

              I’ve said it elsewhere – We (the US) needs a good kick in the pants. And yes we can weather it. I’m sad that you don’t have faith in America.

            • Conformist138 says:

              $60k isn’t bloated for jobs that, i dunno, don’t seem THAT highly skilled? That’s higher than the median HOUSEHOLD income in the US and tons of households have two full-time workers. I’d think I’d died and gone to heaven if someone wanted to pay me $60k and benefits without a degree. Starting at $30k means they start at over $10k/yr more than my co-workers and I make.

        • Loias supports harsher punishments against corporations says:

          Cute that you said Palin-drone, because I hate her so much. I don’t declare myself in a party, but I definitely am not a fan of Palin. Perhaps you should think before you speak, and not assume you know anything about me.

      • katastrophreak says:

        I lived in Michigan for 27 years. I was born there, went to school there, had my first jobs there.

        Three years ago, my (then) husband was working for a parts supplier to the Big 3. The company he was working for decided to pack up and head to India, because in India, they could pay the employees $80/month instead of $80/day. Yeah, that’s right – $80/day in 2007, including his mandatory overtime. The most he ever made per year was $25,000. That was used to help support our three kids.

        So after the company left, he applied for work everywhere in Michigan. He did, after all, have a BS in Mathematics as well as an Associates in Information Security – so he should have been rolling in the dough, right? Well, no, because everybody was hurting. Everything was tanking. Everything was going down the drain. Most people, even in 2007, were fighting over openings at fast food restaurants at minimum wage. Layoffs were taking out people who had worked for companies for 10+ years, but were the most recent hires therefore had to go. These people needed money to pay their mortgages, dental bills, food, electricity… not to mention all the kids graduating from high school and college and looking for work.

        So when he got the job offer to move to NOVA last year, we jumped at it. $40,000/year plus health and dental? Really? Both of us working at the same time had never pulled in that much money – and we both have multiple degrees. Things are different here, but that’s okay, because neither of us have to make the decision every month – food, or medicine for the son with Asperger’s? Go to the doctor for that nasty cough, or keep the electric on? Had we stayed in MI, that’s where we’d be at. That’s what the economy is like. I truly wish it weren’t because I love MI – it’s gorgeous, and the people are friendly. But the kids and the necessities have to come first. Good education, roof, food, heat… can’t afford that on an income of $0/year.

        So congratulations on your state for not getting it up the ass like some of us. But not all of us deserved it. If you had ever seen how some of them work themselves to exhaustion over a 450 degree heat treat and come home with metal shards embedded in their feet just to put food on the table for their three kids, you may not be so hasty to blame THE ENTIRE AUTO INDUSTRY. Because the ENTIRE AUTO INDUSTRY would include the people who were trying to work and earn enough to support families.

        ps: His final wage when the company moved to India? $9.75/hour. No union. No health insurance, no dental. No paid holidays (except Christmas and New Years). Mandatory overtime and weekly drug tests.

    • Dallas_shopper says:

      Yeah really. I’ve never even set foot in Michigan (I don’t count changing planes in Detroit) but I feel for them….I really do. I like the Michigan folks who have moved down to Texas; unlike people from CA, they don’t constantly bash the place. More people from Michigan? Yes please!

    • Oranges w/ Cheese says:

      I just moved to Michigan. Personally, It isn’t so bad for me. We found a great deal on a rental house. But I know others are having trouble. A friend wants to move to Detroit to be with his Fiancee, but he has a house in Kalamazoo.. I think it will be a few years until he moves :(

    • bdgbill says:

      I find it hard to work up any sympathy for Michigan (at least for Detroit / Flint). Nobody there saw a problem with the auto companies paying 60K per year + pension + health care for life, for jobs that required no education and very little skill. The world is full of uneducated and unskilled people who are willing to work for far less.

      • Palin Walmart LLC USA says:

        I agree with you. The liberals blame it on conservative managers that made decisions to lower the quality of the products the workers built, because they claim the actual workers just get paid to assemble parts that were designed by others. But the reality is that those workers can deliberately sabotage an assembly line and there’s nothing management can do about it because of union work rules. That’s why it’s NOT management’s fault for low quality, it’s the UNION’s fault for restrictive laws, wages and sabotage. Europe and Japan don’t have any unions and they make good cars. Same with China.

  3. ElizabethD says:

    Finally, Rhode Island is tops in something! (UGH)

    And I’m caught right in this perfect storm, in my late 50s and without a permanent job after losing mine this spring. (Temping right now; no benefits, but better than nothing). House is “underwater” on mortgage; two kids in private colleges; husband living away from home in another state just to have a job with benefits after being unemployed for two years.

    However: Our state motto is “Hope.” Gotta cling to it.

    • MonkeyMonk says:

      Rhode island is often “tops” just not on the kind of lists that you want to be number one. Look on the bright side . . . maybe we’re number 8 when ranked with the other states.

      I have seen a bunch of long-closed storefronts recently reopening so something must be happening positively with the economy here.

  4. There's room to move as a fry cook says:

    The text book definition of a recession is 2 quarters of consecutive GDP decline.

    Moody’s Adversity Index is based on changes in employment, housing starts, industrial production and house prices over a 6 month period (map shows 12 month difference). I believe this a better indicator that addresses the guffaws encountered when the “recession is over” announcement hit the news – but both definitions still show the overall US economy improving.

    • freelunch says:

      problem being that there are a lot of people saying that “it can’t be over, because it is still bad”… They don’t much understand that ‘recession’ is used to identify a downward trending economy… Things are getting better, it just takes a while for EVERYONE to feel it – just like it took a while for many people to even recognize that a recession was occuring.

  5. DariusC says:

    Great, and I’m heading back to Arizona in a week. Wonderful…

    • Michaela says:

      Try to think of the positives though. If you are buying a home you may be able to get a good deal. Also, living in one of these states does not mean that you are definitely going to face significant hardship. If you have taken care of your expenses and have entered into an industry that isn’t seriously hurting from the downturn, you may not have any real issues.

  6. Loias supports harsher punishments against corporations says:

    This website’s Adversity Index is quite interesting.

    Apparently the U.S. was in a recession in 2001? I hadn’t heard. Also, Louisiana and Mississippi has a sharp recession right at Katrina (not surprisingly) but jump right out of it and into sharp growth mode within 2 months.

    • DariusC says:

      Right after the attacks, the stock market shot down quick… I think that one was just temporary and not enough to strangle our economy like this one did.

    • TasteyCat says:

      I found it interesting that DC was still expanding while every state in the nation was in recession.

  7. Cicadymn says:


    Ya hear dem last week! Da gubbment says da recession was ova last year!

    So you can run and tell dat, run and tell dat, homeboy homeboy home home homeboy.

  8. Cicadymn says:


    Ya hear dem last week! Da gubbment says da recession was ova last year!

    So you can run and tell dat, run and tell dat, homeboy homeboy home home homeboy.

  9. caradrake says:

    Wait, what? Mississippi is affected by the economy? I lived in Jackson MS for four years, ending last April – Jackson not only seemed fine, but better than fine. Business there was booming and expanding at an insane rate. Lots of new residential, new commercial, even large office buildings as corporates moved their headquarters (or added new ones) in the area.

    Is the area outside of Jackson worse?

    • dragonfire81 says:

      Yes, the coast. We’ve been hit hard by the oil spill and also the fact there are no major corporate centers around here. Unless you work at a Casino, a hospital or for the military, there’s really not much around here.

  10. icntdrv says:

    We, here in Mississippi, were not aware that the Great Depression of 1929 was over yet.

    • ElizabethD says:

      LOL +1

    • Phineas says:

      There’s a lot of things Mississippi isn’t aware has happened since 1929…

      • webweazel says:

        It’s funny you say that. Since living in Mississippi. My motto for this state now is;
        The rest of the country tried dragging Mississippi kicking and screaming out of the 1960’s, and only was able to pull them as far as 1965, where they stay to this day.
        This state is seriously screwed up.

  11. Donathius says:

    The Nevada one doesn’t surprise me. Las Vegas has seen a serious drop in visitors recently. Lots of vacancies. When I was there for CES I took a walk down the strip every night and I was just in awe walking past this huge new development of high rises. They were almost completely dark and empty. The condos started at $1 million at went up from there, and there were several hundred of them. I don’t think anyone had stepped in to fill the hotel or retail space either. Some of the retail area facing the strip had been filled by high-end boutiques, but it was pretty lonely. Kind of like someone built a brand new ghost town.

    • Donathius says:

      Ah just found what it is…it’s the CityCenter development. A consortium of companies spent $8.5 billion dollars on it. No one goes there (at least no one did back in January).

    • DorianDanger says:

      Being someone who lives in las vegas, city center was delayed due to lack of funding blah blah blah, and they actually just restarted construction, etc, within the last few months. Several people that live here have gone there, and they have some pretty nice lounges and shows. They are finishing it in sections. The rest of the strip however, is that ghost town you were talking about.

  12. swarrior216 says:

    They missed Florida.

  13. Etoiles says:

    My parents live in Rhode Island. Every time I visit you can see how economically depressed the state is. Every house and shopping center looks so much more run-down than 5 or 6 years ago. Storefronts sit un-leased after the little shops fold… My parents paid a reasonable, non-inflated price for their house jut about ten years ago, and the values in their whole neighborhood shot up for the first 8 years, and then just crashed down below where they bought. (They intend to stay put for many years yet to come so it’s probably not a big issue for them, but it’s still not good.)

  14. Consumeristing says:

    You’d think the stimulus should go to these 8 states stat! You’d be wrong.

    The top 5 states that receive stimulus money per capita are
    Vermont 6.0 percent $522.42
    New Hampshire 5.8 percent $852.53
    Nebraska 4.7 percent $591.17
    South Dakota 4.4 percent $1,084.73
    North Dakota 3.6 percent $1,059.95

    None of which are in recession.

  15. Zernhelt says:

    What?! There’s still a recession in Michigan?

    To be honest, I still son’t know what anyone lives there.

  16. WayneB says:

    The recession ended more than a year ago? Bullshit.

    • Michaela says:

      You need to go back to economics class and learn what a recession is then. Then, remember that reports say the economy at the national level is out of a recession.

      • hansolo247 says:

        I think most economists need to go back to economics school (and I am one).

        While it is true GDP expanded, it was entirely due to government spending, mostly to preserve government jobs. This spending results in some extra Consumer spending as well, but mostly borrows it from Investment spending.

        Investment spending has been crowded out by the Fed’s 0% rate. GDP = C+G+B+I (Consumer, Government, Business, Investment). C+G are up, but B+I (which is needed for truly sustainable growth).

        Bottom line, the recession is “over” because of 2 years of $1.5 trillion dollar deficits (and don’t say 2009 is a Bush deficit because OBAMA VOTED FOR IT). That’s super easy to do. Longer term, the economy is in trouble. Little investment, low lending standards (yes, even now) and the fact that effectively all mortgages are now government guaranteed is going to bring on the hurt, most likely after 2012. Then you have the fact that this administration has made it MORE EXPENSIVE TO HIRE US WORKERS and it doesn’t set up our economy for a true recovery.

        It’s time for someone from the Austrian school to have input into economic policy. Really, truly think about who you vote for. A D or R candidate is wrong, no matter who.

  17. NotEd says:

    Having moved from relatively safe, but expensive Maryland to completely in the red Illinois 2 years ago, I have to say I am a bit disheartened by this aritcle.

    Thank you for it.

    That is all.

  18. Twonkey says:

    As a resident of New Mexico, I can tell you that, yeah, we’re still chilling in recession land.

  19. sweaterhogans says:

    Then why does it seem like Philadelphia is the only major city where you have to commute way out into the suburbs to find work? I moved to the city so I could be close to work, but now I have 1 hr+ commute each way!

  20. Smultronstallet says:

    I’m not seeing this “economic tailspin” in Illinois.

  21. Jedana says:

    Try Florida. Especially Jacksonville. The recession is still live and kicking here.