Recession in Oil Patch Red States This Year?

[swag]

http://equitablegrowth.org/2015/04/18/recession-oil-patch-red-states-year/

by Brad DeLong Posted on April 18, 2015 at 12:25 pm
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In the Oil Patch, probably yes–lost demand from the failure to expand Medicaid is likely to push them over the edge and into recession. Elsewhere it will be close, but probably not:

Ezra Klein: The Anti-Obamacare Movement Is Making Red States Sicker and Poorer: “The strange strategy Republicans have adopted against [ObamaCare]…

…is leaving red states poorer and sicker…. King v. Burwell…. If the Supreme Court rules for the plaintiffs, those states, including Arizona, will lose their subsidies. That would be a disaster for those states. As Sarah Kliff writes:

Approximately 205,000 Arizonans are receiving coverage through the marketplace. Of those, 76 percent are receiving subsidies to help cover the cost of their premiums. An adverse ruling would likely lead the state’s exchange to collapse, as healthy, young Arizonans who could only afford insurance because of the subsidies pull out and the exchange itself enters into a death spiral.

What Arizona has promised to do is let that happen… a decision made, of course, by legislators and a governor who have insurance now, and will have it in the event of an adverse Supreme Court ruling….

. . . more

[Rozlee]

1. So much for our Texas Miracle.

Businesses won't be attracted to states that have high percentages of uninsured sick individuals that might put a drain on their own insurance due to frequent employee sickness and cost the industry with their absenteeism due to illness, whether their own or those of family members. The red states lead the nation in morbidity related to hypertension, diabetes, heart problems and untreated mental illness. That will keep many businesses from moving to those states and might make some in those states decide a healthier employee pool would serve them better.