Is the US Going to the Greek?

Let's recap:

1. Greece spend public money frivulously.
2 .Raised taxes on "the rich" (code for everyone)
3. Economy suffered and tax revenue fell
4. Now Greece can't pay back loans

Where is the US on this list? Why is it that the worst states economically (California, Michigan, etc) are the ones that the Democrats and the unions have controlled? Why do we want to repeat these failed policies on a national scale?

Red States are Actually in the Black

Missing from the article is the mention of the lack of unions and low taxes. The lack of unions helped maintain a competitve cost of labor and allows companies to fire people when needed. Companies that can't fire people, are hesitant about hiring them.

Also not mentioned is lack of land use restriction laws. California has land, you just can't build on it because you might disturb the natural habitat of the spotted earthworm. Thus housing supply is artifically constrained.

While less strict zoning was mentioned as a driver of Texas missing the housing bubble, it is liberals that always push for zoning. Texas companies could turn an old commercial property into residential housing units without having to bribe government officials or deal with massive bureaucracy.

Credit was given to Texas's natural resources, but other states have their own natural resources. The residents just can't use it. How many jobs are lost in California because they can't drill off the coast?

Why is it that the blue states are the ones doing poorly economically? Why would we want to export those failed policies onto a national scale?

Lone Star - Why Texas is doing so much better economically than the
rest of the nation. (Daniel Gross - Slate)

On several measures of economic stress, Texas is doing quite well. The state unemployment rate is 8.2 percent—high, but still one many states would envy. (California's is 12.5 percent; Michigan's is 14.1 percent.) It entered recession later than the rest of the country—Texas was adding jobs through August 2008—and started slowly adding jobs again last fall, thanks mostly to its great position in the largely recession-proof energy industry....

The Texas housing market also has fared better than many. The mortgage delinquency rate (the portion of borrowers three months behind on payments) is 5.78 percent, compared with 8.78 nationwide, according to First American CoreLogic. That's partly because relaxed zoning codes and abundant land kept both price appreciation and speculation down....

As it has for decades, energy is driving Texas' economy. In recent years,
natural gas has been undergoing a renaissance.....

The state has its own electricity grid, which is not connected to neighboring states. That has allowed it to move swiftly and decisively in deregulating power markets, building new transmission lines, and pursuing alternative sources.

Manufactured goods like electronics, chemicals, and machinery account for a bigger chunk of Texas' exports than petroleum does.

Freeloading - The New American Dream?

As the percentage of people who don't pay any income tax increases, look for the demand for government services to increase. If people get benefits paid for by others, why not vote in further benefits.

This spells disaster in the long run as deficits are unsustainable. Increasing the tax burden on "the rich" will further reduce the amount of money they have to buy things. When the rich buy boats, the boats are built by those who are not rich.

Democrats want the control and power of taking an ever-increasing share of people's money and then allocating it as they see fit. Part of it can go to fund "community outreach groups" which are shell organizations to recruit voters for Democrats.

History dictates that this will cause economic decline.

Nearly half of US households escape fed income tax– AP- Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it's simply somebody else's problem. About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That's according to projections by the Tax Policy Center, a Washington research organization....

The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.
The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment. "We have 50 percent of people who are getting something for nothing," said Curtis Dubay, senior tax policy analyst at the Heritage Foundation.
The vast majority of people who escape federal income taxes still pay other taxes, including federal payroll taxes that fund Social Security and Medicare, and excise taxes on gasoline, aviation,alcohol and cigarettes. Many also pay state or local taxes on sales, income and property....

Obama has pushed tax cuts for low- and middle-income families and tax increases for the wealthy, arguing that wealthier taxpayers fared well in the past decade, so it's time to pay up. The nation's wealthiest taxpayers did get big tax breaks under Bush, with the top marginal tax rate reduced from 39.6 percent to 35 percent, and the second-highest rate reduced from 36 percent to 33 percent.
But income tax rates were lowered at every income level. The changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.
Here's how they did it, according to Deloitte Tax:
The family was entitled to a standard deduction of $11,400 and four personal exemptions of $3,650 apiece, leaving a taxable income of $24,000. The federal income tax on $24,000 is $2,769. With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly. The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax. That ought to take the sting out of April 15.

Democrats' November chances

Time thinks the Democrats should be worried for five reasons:

1. Michael Steele - Says he makes gaffes and the result of the incident
with the staffer blowing RNC money at nightclub 2. Fundraising - RNC hasn't raised as much money as in 1994
3. Tea Parties - Says there's a disconnect between the tea party GOP
candidate and the establishment GOP candidate and that will hurt them. Also references the loss of House seat in upstate NY where there was essentially a very liberal Republican and a conservative running against a Democrat.
4. Who's the Leader? - No Newt
5. Legislative Wins - Democrats have had legislative wins
unlike 1994.

My Take:

1. The RNC may be hurt by scandal, but donors will just give money to candidates directly. I don't see how aggregate funding of candidates is hurt

2. Today its easier ability to donate directly to a candidate via the web. I think people are preferring to do that, especially the small donor.

3. Times assumes that the "tea party" candidate is not a Republican. Charlie Crist is typical of the establishment Republican that can win an election, but often votes for government expansion. Marco Rubio is a Republican and will win Florida. The NY state election was a one-off incident based on the extreme liberal views of the Republican candidate and the late entry of the Conservative candidate.

4. There is a bit of a leadership void, but there are some candidates that may jump in such as Eric Cantor or Paul Ryan. Anger at the Democrats alone will win several seats, but Republicans do need a clear action plan, like the contract. They need to clearly state how they will dial back government overreach, instead of just being the slow road to socialism instead of the fast road.

5. Just because Democrats passed something, that won't help them. People are angry with the Democrats forcing healthcare bill despite huge opposition. The Dems can't hook people onto benefits since they dont' start until 2014.