December 31, 2016

Some evidence that GOP economics doesn't work

Robert Reich - For years, conservatives have been telling us that a healthy business-friendly economy depends on low taxes, few regulations, and low wages. Are they right?

We’ve had an experiment going on here in the United States that provides an answer.

At the one end of the scale are Kansas and Texas, with among the nation’s lowest taxes, least regulations, and lowest wages.

At the other end is California, featuring among the nation’s highest taxes, especially on the wealthy; lots of regulations, particularly when it comes to the environment; and high wages.

So according to conservative doctrine, Kansas and Texas ought to be booming, and California ought to be in the pits.

Actually, it’s just the opposite. For years now, Kansas’s rate of economic growth has been the worst in the nation. Last year its economy actually shrank.  Texas hasn’t been doing all that much better. Its rate of job growth has been below the national average. Retail sales are way down. The value of Texas exports has been dropping.

But what about so-called over-taxed, over-regulated, high-wage California? California leads the nation in the rate of economic growth — more than twice the national average. In other words, conservatives have it exactly backwards.


Anonymous said...

A working class stiff can at least afford to live in Kansas, not quite so in California. The truth is there are two Californias, and for one of them life is, indeed, very good.
One need not venture too far past the zones of gentrification to see the poverty, hunger, and suffering.
It is estimated that 20% of the nation's homeless population lives in California. This is large part due to the extreme cost of living. Consider Orange County:
"--Orange County is one of the least affordable counties to live in in the nation. General cost of living is 43% above the U.S. average. Virtually all consumer price index figures, including but not limited to costs of fuel, insurance, utilities, food and entertainment are above the national average.
--Orange County's housing market is one of the most expensive in the nation. As of July 2015, the median sales price for a home in Orange County is $616,300 (Zillow). In comparison, the median U.S. housing price is $281,800 (U.S. Census).
-- Rental costs also have a similar gap. In 2015 U.S. national median rental price for a two bedroom apartment was $803 (U.S. Census/Ychart). In Orange County, it was $1719 (HUD).
This means that an Orange County renter must earn $29.75 an hour for their housing costs not to exceed 33% of their income. That equals a $61,884 annual salary. In comparison one in five Orange County households (20.5%) make less than $25,000 annually (U.S. Census).

- Given the above statistics, this means that a single parent with two children working two minimum wage jobs would pay 59.5% of their income towards housing to pay for a 2 bedroom apartment. This affordability gap is one of the largest contributing factors to homelessness."

Similar numbers hold true across the entire state.
Reich occasionally talks a good game, however, where was he and what did he do about matters when he was actually in a position to effect change? At that time, he was touting the same neoliberal doctrine that has eviscerated the once working classes. He hadn't a clue about wat goes on in real people's lives then, he hasn't got a clue now.

Anonymous said...

Anon442, you beat me to it.

"Oh, if you ain't got the do re mi, folks, you ain't got the do re mi,
Why, you better go back to beautiful Texas, Oklahoma, Kansas, Georgia, Tennessee.
California is a garden of Eden, a paradise to live in or see;
But believe it or not, you won't find it so hot
If you ain't got the do re mi."

(Woody, of course)