Well, the
Pacific Research Institute, official chroniclers of bizarro-land, have published the
50 state economic freedom index. This is accompanied by a bizarro op-ed
from the WSJ indicating that they actually believe this rubbish that red states are somehow more "economically free" because they have lower taxes. Anyway, here are the 10 most economically free states according to this report.

And the ten least free states.

Now readers of Give Up blog will probably be able to predict how little I think of this index. First of all, who would actually want to live in Kansas? Personally I'd rather be overtaxed in New York or California than bored to death in the cultural wasteland of these flyover states. It is also interesting to note that Virginia is number 4 on this list, probably because two governors ago we had a couple of morons who cut taxes without cutting spending (of course) burying Virginia in the red, and it took a progressive Democratic governor to raise taxes on the rich in order to put the state back in the black. Then check out this map of the federal tax burden of each of the states as compiled by The Tax Foundation,
Federal Taxing and Spending Benefit Some States, Leave Others Paying Bill
It seems as though 7 of the top ten states receive more federal dollars than they contribute, two of the three "economically free" states that contribute more than they take are blue states. Then take a look at the bottom ten and you seven of the ten pay out more than they receive (and the ones that don't nearly break even). So, in other words, the economically free states are the ones that end up bilking the blue states out of federal tax dollars because their tax incomes are inadequate to cover the costs of administering their state budgets.
Then consider this idea that "jobs are flocking" to these states. According to the
Bureau of Labor Statistics The unemployment rate in Kansas, where these jobs are supposedly flocking to, is the same as in New York, and Massachusetts and New Jersey actually have lower unemployment rates. Most unemployment rates in this country are more or less the same, falling between 4 and 5 percent, highest in Mississippi at 7.9% (eight of the ten highest unemployment rates are in red states). Then consider the
rate of change in these rates, and you see California and New York are decreasing their unemployment at a faster rate than Kansas (0.8 vs 0.5 percent respectively>. The states with the most rapidly increasing unemployment rates are mostly red (8 of 10 are red states). Also, check out Figure 1 and 2 on the left, of the comparison of the so-called "right-to-work" states with other states and you see these economic freedom measures simply lower wages without any great decrease in unemployment benefit. By all means, move to these "economic freedom" states to work for a lower wage, and at the same time receive fewer services from their governments. It's clearly a measure of freedom not to have healthcare, good hospitals, decent wages, or an infant mortality rate worthy of the first world. Shit, why stop at moving to these "economically free" red states? Why not just move all the way to Mexico, not get taxed at all, and live in a place where 50% of the labor force has to work in another country in order to pay the damn bills.
If I'm wrong, explain to me how economic freedom corresponds to taking more federal tax money than other states with higher GDPs, then claiming you are somehow economically superior? The unfree states are subsidizing their tax idiocy, and then the WSJ claims that jobs are flocking to these states, when it's clear as many or more jobs are flocking to places like California and New York. Then look at any other measure of quality of life, measurements of the efficacy of state government (summarized in some of the Give Up maps) and you see that the Blue states are providing better services and quality of life while subsidizing the regressive tax policies of the "free" states.
I say, we let these jackasses cut federal taxes to nothing, because then when it comes time to cut the pork, the Blue states that are net-positive economies will make out fine, while red states living off the fat of the federal tax system will be screwed under their so-called "economic freedom" policies. Race to the bottom guys, see if we care.
3 Comments:
You knew they were going to be telling some big whoppers when they named it the "Freedom Index." Dead giveaway.
It's interesting how Red States being on the Federal dole actually helps them move to the top of the "Freedom Index." It's like they're not just admitting that Blue States pay for the Red States' "freedom," they're also calling the Blue States suckers for doing so.
-JE
8:47 AM, May 25, 2006
Some corrollaries to your "who'd want to live in Kansas?" statement:
Do rich people live in Kansas? I'd bet that NY and California, the two "least free" states have more rich people per capita than any other place. Furthermore, NY and California are the two places in the country that are robust and continual engines of economic progress. California has movies and tech; NY has publishing, fashion, and finance. You have a better chance of making a fortune in New York City than you would ever have in Lawrence, KS.
12:40 PM, May 25, 2006
What I think it comes down to is whininess from failures. The comments on the taxprofblog are representative.
People who can't make it in these competitive markets cry that it's the governments fault they can't succeed, not their own inherent ineptitude, stupidity, or laziness. I know plenty of people who do just fine in these states and don't bitch about the taxes. The government often seems to get blamed by highly-flawed individuals for "getting in their way" when in reality, that's just an ego-protective cover.
4:57 PM, May 25, 2006
Post a Comment
<< Home