Liberal political ideology just can’t compete against economics. States with a tax and spend mentality are losers. They consistently lose businesses, revenue, jobs and taxpayers to states with a more conservative, and therefore business friendly environment.
Every year the American Legislative Exchange Council (ALEC) publishes a study comparing at least fifteen economic and policy factors to determine the best and worst states in regard to economic outlook. Liberal states are consistently at the bottom.
Their report, Rich States, Poor States examines the latest movements in state economic growth. The data ranks the 2017 economic outlook of states using fifteen equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. The 2017 report is their tenth edition and closely examines trends over the last few decades that have helped or hurt states’ economies.
The one common trait among the states populating the bottom of the list of fifty states is that they are primarily ruled by Democrats and have a liberal political ideology. High taxes, burdensome regulations, enormously expensive public sector unions and a generally low business-friendly environment all contribute to this.
Below is the map depicting the state rankings from 2016:
Although there has been some movement since last year, with some states improving, by and large the states ruled by liberal Democrat policies remain at the bottom. What causes these states to be in such economic trouble? Liberal political policies. No question. As Larry Kudlow of CNBC and Brett Arends of Market Watch explained last night, Tuesday 18 April, on the syndicated John Bachelor syndicated radio show, speaking first of Connecticut’s plummeting in the rankings:
“Governor Malloy [has created a dog’s breakfast of] the Connecticut economy – GE and multiple other companies have fled. Unions have in effect destroyed it. It was in great shape and now is in tatters. States with no income tax have three times the growth in jobs as do other states… Gov Lowell Weicker [of Connecticut] pushed through a state constitutional amendment to have a balanced budget – and that’s never been enforced! True, taxes are a factor but right-to-work laws are critical: you’re welcome to join a union, but are not obliged to join if you choose not to. Ten years in a row, the best has been Utah. The most progress in the last ten years: Indiana, which had two great governors, Mitch Daniels and Mike Pence. Florida is No. 6 in the list; it has beautiful weather but unattractive gubernatorial policies; even California lost people to North Dakota from its [harebrained] policies! Lots of liberal Californians have moved to Colorado, then vote o the kind of officials they left behind, New York is the 50th, New Jersey is 48th . Disaster. These are mostly public-sector unions. They vote vast benefits for themselves and bankrupt the state”
You’d think that common sense and critical thinking would take over and states who are getting creamed would adopt better, smarter policies. Not really. For example, New York who ranks dead last, fiftieth, just passed their budget. Instead of instituting new policies and lower taxes, they did just the opposite. NY’s next budget includes $190 million in new taxes, PLUS a new higher health care tax, PLUS a new higher “millionaire tax” and more! Their budget also includes a new program to offer “free” tuition at state colleges. Tax and spend. Tax and spend. It simply doesn’t work but the liberal ideology is so entrenched that even simple math isn’t enough to jolt these politicians back to reality.
It is primarily states that are ruled by liberal Democrats that are failing. Compare the map above with the map of Democrat versus Republican controlled states below. There is an unmistakable correlation between Democrat rule and economic failure.
This translates into more than just bad economics. These same states are losing political power and clout as well. People are smart. They’re smart enough that when things get bad and they feel, or in reality are, powerless to change things, they move. And they are. People are fleeing the worst states and moving to better pastures, because in this instance, the grass is truly greener across the state line. Collectively, states like California and New York have lost millions of people over the last two decades.
According to the New York Post, more people are leaving New York than any other area of the country. Being last for economic outlook, and that being driven by liberal policies are convincing folks that New York is failing. The state’s citizens are fleeing the sinking ship. ALEC summarized NY’s woes:
2017 Rich States, Poor States Economic Outlook Rank: 50
- New York’s high taxes, high rates of spending and government cronyism (START-UP NY) have caused the state to rank dead last in nearly every single edition of Rich States, Poor States
- Highest state/local business income tax rate in America – 17.19 percent
- Second highest state/local personal income tax rates
- Nearly 1.4 million taxpayers have fled the Empire state in the past decade (worst nationally)
This loss of population is causing a loss of political clout as well. When people leave a state, they take their federal representation with them. New York lost two Congressional seats since the last census, so has California. This trend will continue after the 2020 census too and we can expect New York to lose at least two more seats.
That means that red states like Texas, Tennessee and North Carolina are picking up these seats. Liberals are losing their seat at the table in regards to federal representation. The chart below shows the losses of House seats.
Now, take just a moment and compare the three maps above. There is absolutely a direct correlation. Liberal tax and spend policies are bankrupting their states. Businesses and tax payers are fleeing these states in record numbers.
The real problem is that the political ideology of the liberal politicians is so deeply entrenched that no matter what, no matter how their states fail economically and politically, they simply will do nothing but double-down on their proven failures.