States will assume the rosy numbers for new income mentioned above and start spending it in various ways - for example, pretending it will help cover their seriously underfunded pensions even with the most rosy and unrealistic rates of return...and the damage will be enormous when those numbers don't materialize, because guess what? You wanting more of my money doesn't mean I have more to give.
Poor government likely has a big hand in why the economy stinks...but thinks itself immune to those things if it can get those other people to pay for their malfeasance. We ran out of other people - it's just us po folk, not to hit anyone with a cluebat or anything.
Looks like everyone, even governments with use of force to collect - is more concerned with fighting over a piece of a shrinking pie than making the pie bigger. I feel lucky to have no personal stake in this anymore (basically I'm retired off grid in farmland) , but it's disgusting to watch all the "IP wars", "Tax wars" lets need to "spend more on the military" wars, the war on freedom/drugs/immigration, and so forth. The people doing this are losing control of the narrative as even the guy with cheetos and beer on the couch in front of the big telly is starting to notice that the lie 'we'll pick those guys pockets to buy your vote and solve your problems (that we created ourselves to so as to use the same story on the other guy). Hence their increasingly frantic agitation.