Unemployment in the United States is approaching historic lows, and our economy is unarguably a full employment economy. Consumer confidence and personal consumption expenditures have improved since 2009, business investment and sentiment have improved, and net exports are improving partially in light of renegotiated trade agreements. With three of the four components of gross domestic product stabilizing significantly, only government spending and deficit financing are questionable components of the economy. State tax revenues from higher income taxes in an improving economy and increasing sales taxes due to increasing consumer spending should be expected to produce massive state surpluses.  This hypothesis, if validated, will signify that the United States is on the road to financial recovery for all components of the economy with the exception of the federal deficit. The primary sources of income for most states are...(Read Full Post)