Ray Dalio Says Keep an Eye on States’ Debt Post-Election

The video discusses the financial challenges faced by state governments, highlighting the inability to print money like the federal government. It examines the impact of large debts and wealth gaps, particularly in states like Connecticut, New Jersey, and Illinois. The video explores the consequences of raising taxes or cutting spending, which can lead to migration and economic decline, as seen in places like Detroit. It concludes with a discussion on the future challenges states will face after elections, focusing on how to manage deficits and maintain services.

Describe the 'hollowing out dynamic' mentioned in the text.

• People moving to better places

• Increased taxes

• More services for the poor

• Economic growth

What is expected to be a significant issue for states after the election?

• Deficits

• Tax increases

• Service improvements

• Population growth