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September 26, 2014

Facts Undisputed: Republican Governors Are Better at State Economies

By Economy Watch

Lately, amounting evidence throughout the United States has begun to suggest that Republican governors could be the balm for state economies. In the fourth quarter of 2013, nine of the ten states in the US defined as the fastest growing economic areas were run by Republican governors.

Low Taxes and Fewer Regulations

North Dakota, currently within the midst of an oil-fracking boom, showed the most impressive growth in the study with 8.4% increased GDP during the last three months of last year. The remainder of the top five included West Virginia, followed by Wyoming, then Louisiana, and finally Nevada. Only West Virginia, which is still defined as one of the poorest states within America, currently has a Democratic governor out of all 10 states making the top of the list.

Growth Throughout the United States

The factors, which contribute to some states experiencing faster growth than others, are obviously quite complicated. They may extend beyond simply the realms of political control. The health of the economy on a broader scale for the United States also plays a significant role.

For example, many of the top performers in the country so far are located within the Southwest and the South. These regions, previously underdeveloped, have recently had their economies improved by a booming growth in populations. Furthermore, states like North Dakota (a northern mountain state, we know) have seen benefits in the form of exploiting raw materials such as oil. On the other hand, many of the states that are growing more slowly, such as New York and Massachusetts, are far older. By having more time to settle, the states typically have more money than the national average, and higher amounts of residents with degrees.

These two states for example, have higher taxes than high economic growth states. New York for instance, is sitting on tons of oil shale but their Democratic governor says no to fracking despite fracking creating thousands of jobs all over North Dakota and Texas. This is a regulation that is preventing thousands of new jobs from being created in the state of New York. This is why New York and California are seeing hard working Americans leave those states in the dust.

Of course, the disparity in growth throughout different states could also be attributed to tax levels and regulations as already stated. Taxes in the South are far lower, prompting many businesses to set up shop. In the region, there are fewer unions, and the states are lightly regulated.

Facts Undisputed

Despite the different factors that may be contributing to the change in economic health throughout the United States the Republican influence can't be ignored. The advantages that the Republicans have brought to states are not just the coincidences of a single quarter. Since the end of the huge recession that took place in 2009, Republican-led states have been achieving more economically.

Between 2010 and 2013, seven of the ten most economically impressive states, were all run by republican governors. Once again, North Dakota showed the highest growth, at 16.7%, while Texas (7.1%) came in shortly after, followed by Nebraska (6.3%), South Dakota (6.3%), and finally Utah (5.8%).

According to the data that has been freshly exposed by the Bureau of Labor Statistics, six of the ten states that have been performing the worst economically were run by Democrats. A state by state comparison of GDP advancement throughout the country would certainly suggest that the Republican parties have the strength to help states thrive economically.

Courtesy Economy Watch

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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Item Reviewed: Facts Undisputed: Republican Governors Are Better at State Economies Rating: 5 Reviewed By: Econ Matters