Economic Prospects by State

  1. Each state, regardless of its politics, is a subeconomy which is heavily linked to the federal economy; the economics of California and Texas, therefore, are not entirely independent of another. Therefore, the ability we have to categorically state that “X is better than Y” is very limited, because traditional metrics of economic health are not independent from state to state.
  2. Further, the definitions of “red state/blue state” are somewhat fluid. We know that California, since 1992, is a “blue state”; Texas became a “red state” in he late 1990’s. But a rather large number of states are fluid in their politics; is pre-2016 Michigan a “blue state”? Their national politics were certainly blue, but they switched governors from Dem to GOP almost every time they could.
  3. Even worse, that fluidity screws up time-based metrics. I can’t, for example, take a GDP growth chart and compare “blue” California and “red” Texas since 1980, because in 1980, California was very mixed politically and Texas was pure Democrat.
  4. And then on top of it all……governance policies at the state level are tend not to be “ideologically pure”. Almost all states have an “incubator” fund which helps fund new business; an incubator fund runs contrary to the “let the market decide” instincts of conservative economics. And on the other hand, we always see (and just did see, in the case of NY City and Amazon) left-leaning politicians tax abatements to attract new business; tax abatements are anathema to left-leaning economics.



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Kady M.

Kady M.


Free markets/free minds. Question all narratives. If you think one political party is perfect and the other party is evil, the problem with our politics is you.