Thursday, May 10, 2012

Business Friendly States Vs. Unfriendly State Politicians

Through no effort of my own, I somehow got on Florida Governor Rick Scott's email mailing list. I usually just dump it immediately but an email I received today caught my eye. The email claimed that Florida was voted the second best state to do business in (Texas was first). I went on explore this claim and came across the following interesting statistics and situations from a variety of sources:

- Chief Executive Magazine did indeed rank Florida as the second best state to do business in. They attributed this business friendly status to business and tax reforms put forth by the state.

- Scott attributes this friendly business atmosphere identified by the magazine as helping Florida add 140,000 private sector jobs to its state economy over the past year.

- The ten best states for business are:

  1. Texas
  2. Florida
  3. North Carolina
  4. Tennessee
  5. Indiana
  6. Virginia
  7. South Carolina
  8. Georgia
  9. Utah
  10. Arizona
Nine out of the ten of these states have Republican governors.

The ten worst states for business are:

  1. California
  2. New York
  3. Illinois
  4. Massachusetts
  5. Michigan
  6. New Jersey
  7. Connecticut
  8. Pennsylvania
  9. Oregon
  10. Hawaii

Seven of these ten have Democratic governors and I know from personal experience that New Jersey politics have long been dominated by Democrats in the state government.

- If I look at Bureau Of Labor Statistics results and take the arithmetic average of the ten best states to do business in, the latest average unemployment rate is 7.97%, below the national average.

- If I take the arithmetic average of the ten worst states to do business in, the latest average unemployment rate is 8.25%, above the national average.

- According to the Chief Executive Magazine findings, Texas and Florida had the largest net population migration into their states over the past ten years or so while New York and California combined had a net migration out of their states of over three million people in the same time frame.

- Florida's unemployment rate has come down by over two percentage points in the past year, better than just about every other state and better than the national average while the Texas unemployment rate has consistently remained below the national average throughout the past five years.

- Scott points out in this email, information that has been published in other, non-biased communications vehicles, that the last Florida state budget that was approved was balanced by not raising taxes but was also able to increase k-12 education funding by $1 billion.

- As a Florida resident, I pay no income tax at all, the state sales tax is 7% which is the same rate I paid in my former state (New Jersey) and my Florida property taxes have come down every year for the past five years.

- Despite all of this good tax news, Florida schools have improved considerably over the past five years even though historically they were among the worst. Florida has 13 of the top ranked 100 U.S. high schools as measured by U.S. News and World Report and other sources have also reported how much the schools have improved 
(http://www.tampabay.com/news/education/article960721.ece), the state government increased school funding by a billion dollars in the latest budget, and state crime levels are at their lowest rate since statistics first started being kept in 1971 (http://www.clickorlando.com/news/FDLE-Florida-crime-rate-dipped-slightly-in-2011/-/1637132/12244340/-/k3jfsy/-/index.html).

So what have learned from all of these statistics:
  1. The cost of government, and the associated taxes, has gone down in Florida while the quality of life and government services (e.g. education, law enforcement, etc.) has improved.
  2. Republican led states tend to have better environments for business, which should lead to better lives and employment opportunities for state citizens.
  3. Democratic led states tend to have worse environments for business, which should lead to lesser lives and employment opportunities for state citizens.
  4. The best states for business have an average unemployment rate that is less than the unemployment rate in the worst states for businesses.
  5. Republican led states tend to grow in population while Democratic led states tend to shrink in population.
Seems like some states have figured out how to oversee an economy that grows the population, keeps the tax burden under control, implements efficient and effective basic government services, and provides a business environment that grow the private sector of the economy. Unfortunately, Obama and the rest of the Washington political class have been unable to learn these simple lessons.

Where well run states keep taxes under control, Washington wants to constantly raise taxes and fees.

Where well run states support a productive business environment, Washington keeps generating hundreds and hundreds of new and unneeded regulations every year, which inhibit economic growth and add to the uncertainty of business planning and expansion.

Where well run states provide valued services to its citizens in an economic manner, Washington programs never seem to attain their goals while wasting trillions of dollars of wealth in the process.

Many states could teach Washington how to operate effectively and efficiently. Unfortunately, it appears most of the politicians in Washington are drop outs when it comes to being schooled by the top state governments.


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http://www.unitedstatesofpurple.com/

The United States of Purple is a new grass roots approach to filling the office of President of The United States by focusing on the restoration of freedom in the United States, focusing on problem solving skills and results vs. personal political enrichment, and imposing term limits on all future Federal politicians. No more red states, no more blue states, just one United States Of America under the banner of Purple.

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Please visit the following sites for freedom:

http://www.cato.org/
http://www.robertringer.com/
http://realpolichick.blogspot.com/
http://www.flipcongress2010.com/
http://www.reason.com/
http://www.repealamendment/



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