06-06-2016, 06:28 PM
(06-06-2016, 05:44 PM)Benton Wrote: Honestly, I doubt anyone here is going to dig back through and find out what Daveri and Tabellini were basing their research off of. But, so far, Kansas is proving that to be incorrect. They have radically different policies than both contiguous and similar size or located states, but their growth has been worse.
No it doesn't. Read what I quoted - there are many moving parts and factors in economic success. To say tax cuts failing to generate growth in KS somehow obliviates the widely held economic view that higher taxes = lower growth is simply wrong.
KS unemployment sits at 3.8%, considerably above the national average of 5.0%. Labor force participation sits at 68.0%, 11th nationally. "Trickle down" is not literally your boss paying you more because his taxes are lower, but hiring more people because the business has more after-tax....and the expected job growth then, indirectly, raises wages through supply & demand. In the case of KS, there just wasn't room for unemployment to go down much (i.e. job growth), and indeed job growth has lagged.
It's little more than faux-conservatism which implements massive stimulus (in this case, tax cuts) without offsetting budget cuts. In that regard, the policy is closer to Keynesian economics and liberal fiscal policy than true fiscal conservatives. Long story short, Brownback's solution focused on the wrong thing, a thing that wasn't a problem. He blew out the budget deficit with little upside.
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