Open Thread

November 3rd, 2009 10:24 AM

For general discussion and debate. Possible talking point: middle-class families are fleeing blue states.

The likely reasons behind these troubling trends are things rarely discussed in "the narrative"--concerns like high costs, taxes and regulations making it tough on industries that employ the middle class. One clear culprit: out of control state spending. State spending in New York is second per capita in the nation (anomalous Alaska is first); California stands fourth and New Jersey seventh. Illinois is down the list but coming up fast. Over the past decade, while its population grew by only 7%, Illinois' spending grew by an inflation-adjusted 39%.

The problem here is more than just too-large government; it lies in how states spend their money. Massive public spending increases over the past decade in California, New Jersey, Illinois and New York have gone overwhelmingly into the pockets and pensions of public employees. It certainly has not flowed into such basic infrastructure as roads, bridges and ports that are needed to keep key industries competitive.

If the states are, as Justice Brandeis stated, the laboratories for democracy, what does this mean for the United States?