Wyatt earp
Diamond Member
- Apr 21, 2012
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States are increasingly competing with one another for jobs and capital. Americas federalism has always allowed for high degrees of regional competition compared to more centrally governed nations, but declining regional specialization and more partisan state legislatures have accelerated that competition to record levels.
*Snip*
While red states are becoming more pro-business, blue states from California to Illinois are raising taxes and the minimum wage. Whatever the other merits of these policies might be, they definitely make a state less attractive to businesses. The nine states without an income tax experienced 13% job growth from 2001-2011, compared to a 7.6% national average. Since 2009, right-to-work states have created four times as many jobs as states with pro- union policies. Public policy isnt the only reason for this discrepancy the boom in fracking has occurred mostly in red states but all other things being equal, businesses prefer lower taxes and weak unions.
*Snip*
The Democratic states that have been raising taxes would have a hard time cutting them even if they wanted to. These states often have billions in unfunded pension debt, creating a vicious cycle: raising taxes to stabilize the pensions in the short term, having the pension arithmetic worsened by lost population and jobs because of the tax hikes, and then needing to raise taxes again.
The New Civil War is About Jobs ? and This Time the Red States Are Winning
*Snip*
While red states are becoming more pro-business, blue states from California to Illinois are raising taxes and the minimum wage. Whatever the other merits of these policies might be, they definitely make a state less attractive to businesses. The nine states without an income tax experienced 13% job growth from 2001-2011, compared to a 7.6% national average. Since 2009, right-to-work states have created four times as many jobs as states with pro- union policies. Public policy isnt the only reason for this discrepancy the boom in fracking has occurred mostly in red states but all other things being equal, businesses prefer lower taxes and weak unions.
*Snip*
The Democratic states that have been raising taxes would have a hard time cutting them even if they wanted to. These states often have billions in unfunded pension debt, creating a vicious cycle: raising taxes to stabilize the pensions in the short term, having the pension arithmetic worsened by lost population and jobs because of the tax hikes, and then needing to raise taxes again.
The New Civil War is About Jobs ? and This Time the Red States Are Winning