One of the great things about living in America is that to some extent, each state has it’s own entity. Don’t like the particular laws of one state and you can move to another. Fed up with your local economy, or your local tax burden, and you can vote with your dollars by moving to another state.
When we look at migration patterns across America, we find that people are fleeing Blue States and flowing into Red States.
Why? You probably didn’t need a study to confirm this, but when it comes to how well government functions, the Redder the better.
The ten most financially sound states in the country are all heavily Republican, while all but one of the ten worst states are heavily Democratic. That’s according to a ranking of states in a new report from the Mercatus Center at George Mason University
The report — “Ranking the States by Fiscal Condition” — used official government data to measure the states’ ability to pay short-term bills and meet longer-term obligations, such as public pensions or health care costs, using five separate measures.
Cash solvency, for example, measures a state’s ability to pay its immediate bills. Budget solvency measures whether states will end the year with a surplus or deficit. Long-run solvency looks at a state’s ability to meet long-term spending commitments. Service-level solvency measures a state’s ability to respond to a demand for increased spending. And trust fund solvency measures unfunded pension liabilities and state debt.
The report also provides an overall ranking of the states. And while Mercatus makes no mention of the states’ political leanings, every state in the top 10 except for Florida is solidly red, meaning those states voted for the Republican in each of the past four presidential elections (see table). And Florida has had a Republican governor since 1999, and the state House and Senate are both controlled by Republicans.
The conservative approach of lower taxes and limited government is a winner, while big-spending liberalism invariably leads to financial ruin.
Well, that settles that!
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