Good economic news in US mainly limited to red states
With Friday’s Big Meh™ of a jobs report, there is still good economic news to be found — provided you’re lucky or smart enough to live in a state with a Republican governor.
But if you live in a Democrat-run state? Fuggedaboudit, as our Deep Blue New Yorker friends might say.
Last week, the Foundation for Economic Education (FEE) released a report that they say the “picture painted here is clear.”
According to FEE, ten states have already returned to pre-lockdown unemployment rates, or very close to them. The ten states are Nebraska (2.3%), Utah (2.6), New Hampshire (2.9), South Dakota (2.9), Idaho (3.0), Vermont (3.0), Alabama (3.2), Oklahoma (3.5), Montana (3.6), and Georgia (3.7).
Those are great numbers even without a pandemic. As FEE says:
Many different factors influence unemployment rates, but there’s one glaring thing these 10 states all have in common: Republican governors. Generalizing, GOP-led states had lighter government lockdowns on their economies and reopened sooner. So, too, except for Vermont, these states have all prematurely terminated the ongoing supplemental unemployment benefits that can pay unemployed households up to $25/hour.
Now get ready for the ten states with the worst unemployment figures.
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They are: Arizona (6.6%), Louisiana (6.6), Pennsylvania (6.6), Washington, DC (6.7), Illinois (7.1), Hawaii (7.3), New Jersey (7.3), California (7.6), New Mexico (7.6), New York (7.6), and Nevada (7.7).
Please note that the least bad of the bad states, Arizona, has an unemployment rate nearly double that of the least good of the good states.
Can you guess what almost all of the worst-performing states have in common?
FEE notes:
With the exception of Arizona, these states struggling with high unemployment all have Democratic governors (or mayor, in the case of DC). Generally speaking, they had longer and harsher government restrictions on their economies than the top 10 states. And, except for Arizona, all of these bottom-ranking states continued to offer residents expanded payouts to stay on unemployment benefits.
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The lockdown states were almost all run by Democrats. Their response to the pandemic has been to kill jobs in order to stop the pandemic and their results in doing that have been abysmal too. It is one of the reasons people are fleeing California and New York for Texas and Florida.
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