Something Other Than Conservative vs Liberal is Going On
The Bureau of Labor Statistics has released its November 2011 employment report by states, and the conclusion that one draws from the report is that no real conclusions can be drawn from the report. The report does not support the conclusions that low tax states are at a greater advantage over high tax states, and it does not support the conclusion that states with high levels of government spending are at a disadvantage compared to states with low levels of government spending.
The states that had the greatest employment increases from November 2010 are
Texas and California, with in the lead. California California had 233,000 more people employed in November 2011 than a year ago, and 226,000. But Texas California has a higher population than Texas, so on a relative basis Texas had more job creation than . California Texas of course is controlled by radical Conservatives and is firmly in the control of Democrats (although Republicans can and do block many programs). So neither California California nor governance can be used to explain employment growth. Texas
Regional issues appear to be mostly significant.
New Mexico had a huge drop in unemployment, from 8.6% to 6.5% for the past year, although why this has happened is not clear to folks like The Dismal Political Economist who are far from . Unemployment rates continue to be low in the lightly populated New Mexico Midwest states, where high commodity and energy prices support a strong economy. continues to lead the nation in unemployment, and this is because its economy was built on construction, which has since collapsed and entertainment, which is vulnerable to an economic slowdown. Nevada
Conservatives continue to predict doom and gloom for
, as that state had to raise taxes to fix a budget problem created by multiple inept governors and legislators, but so far that has not happened as the state gained jobs over the past 12 months. Illinois New York and both had nice employment gains also, and the two states have widely different Governors. New Jersey
The conclusion, no conclusion can be made about state politics, fiscal policy and taxation and job creation. Sorry economists, there are other things in the world besides economics.