Red state economies in the black, while blue states still lag
According to the Congressional Budget Office, the federal government posted a $293 billion deficit in the first fiscal quarter of 2013, setting the Obama administration up for a record fifth-year of trillion dollar deficits. But while the fiscal condition of the Democratically controlled federal government is still atrocious, Republican controlled states are now swimming in surpluses.
Thanks to a Republican governor committed to developing its natural resources, not punishing entrepreneurs who do, Texas legislators are facing an $8.8 billion surplus over the next two years. To the east,Republican governors Bill Haslam of Tennessee and Rick Scott of Florida have also turned recession deficits into budget surpluses.Moving north, Michigan’s Gov. Rick Snyder, Iowa’s Gov. Terry Brandstad, and Indiana’s out-going-Gov. Mitch Daniels, also can now all boast surpluses in the hundreds of millions of dollars. All of these governors managed to turn their state’s fiscal situation around through spending cuts, not tax hikes. Now their budgets are in the black and their economies are growing.
Things do not look as good in Democrat-controlled states. Illinois, who massively raised taxes on the rich, still has a $5.9 billion stack of unpaid bills. California, who also raised taxes on the rich, was supposed to post a small surplus this year. But tax collections are coming in at 10.8 percent below budget projections. As a result, the state is now projected to be $1.9 billion in the red by the end of this fiscal year.
...It is just another example of what a huge mistake voters made in supporting Obama and the Democrats in November. Their economic policies and fiscal incompetence will make us all poorer. Republicans should be be pointing out how their polices are working in the laboratories of democracies known as states. It is clear that Democrats with their big spending ways lead to deficits and decline. Their control freak regulatory environment leads to less business activity. We need to find a way to get that message out in the blue states too so they will stop voting for loser policies like Obama's.