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Wednesday, August 31, 2011

Griper Blade: Red State Welfare Queens Revisited

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I can't figure out why Democrats and liberal commentators don't talk about this more. Especially now, with the Republican Party scrambling to cut pretty much all federal spending. But, for the most part, they aren't. It's not difficult to understand; red state economies are subsidized with blue state money. In other words, the average red state takes more federal tax dollars than it pays in, while blue states take less. I've written about it before. If we wanted to talk about welfare queens living off the largesse of federal government, Republican states are the queens we'd be discussing.

So what does this say about the economics of Republican state governments? Not good things. The ten poorest states in the nation in 2009 were all red states. What happens in red states is the Republican race to the bottom, where they cut services and spending to lower taxes, in hopes of attracting businesses and jobs. But low taxation isn't the only thing businesses are looking for. They want good schools -- not only for their own kids, but because good schools mean good workers. They want a strong infrastructure to maintain their distribution and supply chains. They want local consumers to buy their products or services. Red states offer none of these things and that is a direct result of the "tax cuts are everything" approach to economics.

All of this comes to mind because of a takedown by Robert Reich of Texas Governor Rick Perry. Perry wants "big government" out of our lives (except for the sex police, of course) and has advocated what Reich calls "fiscal secession" from the federal economy -- i.e., each state is on its own, financially. Leaving aside Perry's hypocrisy here, this would be a disaster for voters in most Republican-dominated states...[CLICK TO READ FULL POST]

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