Wednesday, February 19, 2014

Red works, blue doesn't

In this instance, Red refers to those states primarily controlled by Repubulicans, and Blue to those states primarily controlled by Democrats.  A recent research reports that, in general, Red states have adopted more entrepreneur and market-friendly economic policies over the last five years, whereas Blue states continue pursuing the "bigger government is better" approach shared by our federal government and led by Obama and his Keynesian sycophants.  Close followers of the economy will not be surprised to learn that the Red approach results in better economic performance.  Here's an excerpt from a detailed article at Hit and Run describing the effects of regulation on state-level economic growth:
Regulation is at least as important as taxes and spending. There are 123 scholarly articles in our database that looked at state or local regulatory policy in some form; 31 articles studied broad indexes of state economic freedom that mix both fiscal and regulatory variables. Scholars found a positive economic effect for less regulation 67 percent of the time and for economic freedom 77 percent of the time.
This is a wide-ranging, in-depth article and requires some mental expenditure.  That said, it's very informative and worth the effort.