Research Proves What Reasonably Intelligent Citizens Already Knew

Red States Outperform Blue In Managing Taxpayer Money

Investor’s  Business Daily
IDB Editorial
July 8, 2015

Pop quiz: What do the most fiscally sound states have in common? Good weather? Oil? Blind luck? Or is it conservative policies such as keeping taxes low, regulations reasonable and spending under control?

A new report from George Mason University’s Mercatus Center ranks all 50 states based on 14 measures designed to determine whether states can pay their short-term bills and meet their long-term obligations — debt, pension liabilities and such. The data go through 2013.
The best-run states have enough cash to pay its current bills, enough revenue coming in to meet its fiscal year needs, a cushion for economic shocks, and management long-term liabilities.
The worst states, in contrast, have “tens, if not hundreds, of billions of dollars in unfunded liabilities — constituting a significant risk to taxpayers in both the short and the long term.”

The editorial HERE ends with the following IBD conclusion:

There’s only one factor these fiscal winners and losers share in common. And that’s their political leanings. Of the top 10 states in the Mercatus ranking, just two — Florida and Ohio — voted for the Democratic presidential candidate in the past four elections, and just one — Montana — has a Democratic governor. Even if you look at the 25 best-performing states, only three could be considered reliably liberal.

At the other end of the list, just two of the 10 lowest-ranked states — Kentucky and West Virginia — have voted for the Republican in the past four presidential elections. And while four of them have Republican governors, they all are in solid blue states and all were elected to clean up messes left by their Democratic predecessors.

It’s also worth noting that these same states consistently show up at the top and bottom of other lists that measure business friendliness, tax burden and economic freedom.

In fact, six of the 10 worst-performing states in the Mercatus ranking — California, New York, Illinois, New Jersey, Massachusetts, and Connecticut — are also states with the heaviest tax burdens and rated the least business friendly, according to rankings from the Tax Foundation and Chief Executive magazine.

It would appear, then, that abiding by a philosophy of limited government, lower taxes and fewer regulations leads to growth, prosperity and fiscal soundness. So why is this lesson so hard for people to learn?


Eileen Norcross, Senior Research Fellow,
Mercatus Center
at George Mason University

New research by Eileen Norcross for the Mercatus Center at George Mason University ranks each US state’s financial health based on short- and long-term debt and other key fiscal obligations, including unfunded pensions and health care benefits. The study, which builds on previous Mercatus research about state fiscal conditions, provides information from the states’ audited financial reports in an easily accessible format, presenting an accurate snapshot of each state’s fiscal health.

With new spending commitments for Medicaid and growing long-term obligations for pensions and health care benefits, states must be ever vigilant to consider both the short- and long-term consequences of policy decisions. Understanding how each state is performing in regard to a vari­ety of fiscal indicators can help state policymakers as they make these decisions.



Well, well.  Liberalists love their data spin on other things like climate control but look here… a research study that actually in facts, figures, and analysis tells the truth about what we here at Hardnox have contended all along…”the liberal approach bankrupts not helps cities.”   Vindication  but unlike liberals we won’t rub the other sides’ face in the mud.  

Wait—He@*!*@ Yes I will.                           –Push Back time …

You Democrats and Republican liberalists are bankrupting our country with your hate and fraudulent schemes of Political Correctness…


About Uriel

Retired educator and constitutionalist
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2 Responses to Research Proves What Reasonably Intelligent Citizens Already Knew

  1. Kathy says:

    But Uriel, you’ll confuse them facts when they’ve already drawn their own conclusions.

    The cost of O’care alone is killing us, then you add in the costs incurred because of the illegals it gets worse. The feds need to quit ‘helping’ us so much.

    • Uriel says:

      Lol Kathy. I have seen a LOT of well meaning help over the years. It rarely does anything but enable or cripple the one helped. Even in addicts the tough love of personal battle is the only Real measure of success.