Monday, March 28, 2011

The Census: a laboratory in public policy choices

With 50 states implementing 50 sets of policies, it's not hard to figure out which ones work.  This of course is assuming that one values wealth and growth and a middle class.  Mike Barone explains:


California for the first time in its history grew only microscopically faster than the nation as a whole (10 percent to 9.7 percent). Metro Los Angeles and San Francisco increasingly resemble Mexico City and Sao Paulo, with a large affluent upper class, a vast proletariat and a huge income gap in between.
Public policy plays an important role here -- one that's especially relevant as state governments seek to cut spending and reduce the power of the public employee unions that seek to raise spending and prevent accountability.
The lesson is that high taxes and strong public employee unions tend to stifle growth and produce a two-tier society like coastal California's.
The eight states with no state income tax grew 18 percent in the last decade. The other states (including the District of Columbia) grew just 8 percent.
The 22 states with right-to-work laws grew 15 percent in the last decade. The other states grew just 6 percent.
The 16 states where collective bargaining with public employees is not required grew 15 percent in the last decade. The other states grew 7 percent.

And of course the states that most perfectly characterize lassiez faire, 'red', 'tea party', governance are the ones that have been winning the policy sweepstakes:

The most rapid growth in 2000-10, 21 percent, was in the Rocky Mountain states and in Texas. The Rocky Mountain states tend to have low taxes, weak unions and light regulation. Texas has no state income tax, no public employee union bargaining and light regulation.
Texas' economy has diversified far beyond petroleum, with booming high-tech centers, major corporate headquarters and thriving small businesses. It has attracted hundreds of thousands of Americans and immigrants, high-skill as well as low-skill. Its wide open spaces made for low housing costs, which protected it against the housing bubble and bust that has slowed growth in Phoenix and Las Vegas.
The states, said Justice Brandeis, are laboratories of reform. The 2010 Census tells us whose experiment worked best. It's the state with the same name as the county that's the center of the nation's population: Texas.
Texas.  Damn you George Bush!

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