The state line that best demonstrates 'red model' success and 'blue model' failure
Anyone who cares to look can readily identify that the package of high taxes, high government spending, and high pensions for retired public employees kills economic growth and causes people to flee. If a test case is needed, the adjacent states of Illinois and Indiana – relatively indistinguishable from each other and varying only in the model of state governance – prove that the critical variable in economic success is whether a Democrat set of policies or a Republican set of policies (to over-generalize) is in place.
The editors of the Chicago Tribune appear to get it.
[W]hen Indiana Gov. Eric Holcomb showed up in Gary recently wearing a hard hat and holding a shovel, he was doing two important things: welcoming a trucking company from south suburban Chicago Ridge, and taking a dig at Illinois.
"We are thrilled to welcome HMD Trucking to Indiana, home to balanced budgets, a AAA credit rating and a low cost of doing business," Holcomb said. "It is clear why HMD Trucking decided to move from Illinois to Indiana. We have become the best state in the Midwest to start, get and grow jobs."
Ouch, Gov. Holcomb, the truth hurts. Almost like getting smacked with a shovel.
Alas, it's no longer surprising when an Illinois company leaves for Indiana. ...
Despite the similarities, the two states have very different economic prospects. Indiana is in fine fettle, while Illinois is a basket case, with more than a $130 billion in unfunded pension liabilities, an unbalanced budget and $15 billion in overdue bills. Illinois has higher taxes, too, which would need to be raised even higher to right the ship. We have no idea what that would cost taxpayers, given that the Democrat-controlled General Assembly, ruled by House Speaker Mike Madigan and Senate President John Cullerton, has resisted Republican Gov. Bruce Rauner on his turnaround plan. This constitutes a major roadblock to future job growth and prosperity.
Embracing Democrat policies brings unemployment, declining incomes, and an angry and depressed populace. It really is hard to understand why voters would hand control to Democrats anywhere – assuming, that is, that actual voters are the ones casting ballots.
Hat tip: Cheryl Jacobs Lewin