Thursday, May 21, 2009

It's Not Coincidence. It's Correlation!

It's not an accident that during this recession, the states with the highest unemployment rates and largest deficits are the states that also have the highest taxes. This is not coincidence. It is correlation!

This has been proven again and again for countries as well. Europe has historically had higher taxes than the United States, with their cradle-to-grave welfare states, but they have also historically had unemployment rates significantly higher than the United States. This may be changing, however. With the United States substantially shifting its tax burden, and increasing both its debt load and its welfare spending, it will suffer the same fate: crushing tax burdens on its citizens, and chronically-high unemployment! That is not a prescription for prosperity! It's a formula for economic malaise!