another trickle-down failure

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In an educational episode reminiscent of the conservative economic failure in Kansas, Scott Walker has demonstrated that trickle-down is also a failure in Wisconsin:

In Minnesota, progressive taxes and social spending have created more and better-paying jobs than next-door neighbor Wisconsin has created through tax and spending cuts.

In January 2011, two new governors took office in the neighboring states of Minnesota and Wisconsin. Minnesota's new governor, Democrat Mark Dayton, had campaigned largely on a platform of taxing the rich to provide the services the state needed. By contrast, Wisconsin's new governor, Republican Scott Walker had pledged to cut taxes in order to create jobs. Over the course of the past seven years, these two governors have taken their states on vastly different trajectories: Minnesota to the left, and Wisconsin to the right.

"Now, nearing the completion of those second terms, the merits and problems of these two philosophies of governance can be tallied more definitively," the piece continues, citing a new report from the Economic Policy Institute. "As Wisconsin's and Minnesota's lawmakers took divergent paths, so did their economies," the report states, and "Minnesota's economy has come out ahead:"

Over the past seven years, hourly wages in Minnesota have increased by 2.4 percent over inflation, while wages in Wisconsin rose by just 0.3 percent after inflation. Minnesota, where job growth has been stronger than Wisconsin, also outpaced Wisconsin in reducing unemployment. And Minnesota also has enjoyed strong growth in median household income as compared with Wisconsin--which helps explain the reduction in Minnesota's poverty rates. In Wisconsin, however, poverty has worsened.

How did Minnesota do it? In large part, thanks to Democratic control of both the statehouse and the governor's office in 2013 and 2014, the state enacted an impressive array of progressive policies. Minnesota raised its minimum wage and expanded labor protections. Dayton also expanded Medicaid, and the federal dollars that came with that expansion helped create more health-care jobs. The administration also strengthened the social safety net, expanding paid sick and family leave and strengthening unemployment insurance. [...]

Minnesota has seen its population increase through people moving into the state, while Wisconsin has had more residents leave than new residents arrive.

Robert Kraig (executive director of the advocacy group Citizen Action of Wisconsin) has some choice comments:

With the results from the two states, "You really have a complete debunking of the whole conservative economic program," says Kraig, "and I think a proof that what it's really about is enriching the one percent and large corporations. The idea that it's going to help average people by encouraging business is clearly being debunked by the results of these policies once you actually implement them."

Will they ever learn?

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This page contains a single entry by cognitivedissident published on May 17, 2018 10:17 AM.

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