The New Civil War is About Jobs — and This Time the Red States Are Winning

Wyatt earp

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Apr 21, 2012
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States are increasingly competing with one another for jobs and capital. America’s 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.
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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 isn’t 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
 
I live in a Red State and taxes have gone up since the recession, but jobs are scarce..
Arkansas a blue state has increased taxes and has a very good business operation also.
So I do not take literally the report. Someone calling themselves a writer needs to do more research before writing.
 
I live in a Red State and taxes have gone up since the recession, but jobs are scarce..
Arkansas a blue state has increased taxes and has a very good business operation also.
So I do not take literally the report. Someone calling themselves a writer needs to do more research before writing.

Not sure what state you live in but Upstate S.C. was ranked like #3 in jobs like 2 years ago, Yea I know down state is just a bunch of no job rednecks. lol. but an intresting point of the last paragragh of the article tells me he is fair and knows what he is talking about
For their part, red states will need to cope with the large increases in population. New people mean increased demand for public services like schools, roads, and police. This in turn leads to increased expenses, forcing the states to either move away from the low tax rates that made them successful or paper over the deficits with long-term bonds and other fuzzy fiscal math.
 
Maybe it is time for the blue states to stop subsidizing the red states if this is the case.

What are they going to do? cut off the pension funds of all the old folks from the Blue States that moved here? how dare you.? suckers now pay up......
 

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