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Economy
Red states are outperforming blue states economically
2020-10-04
[Washington Examiner] States run by Republican governors on average have economically outperformed states run by Democratic governors in recent months.

The difference in economic growth is likely due to the pathway of the coronavirus pandemic in the first few months and the economic restrictions imposed by Democratic governors.

Overall, Democratic-run states, particularly those in the Northeast and Midwest, had larger contractions in gross domestic product than Republican-run states in the Plains and the South, according to the latest state GDP data for the second quarter of 2020, released by the Commerce Department on Friday. Of the 20 states with the smallest decrease in state GDP, 13 were run by Republican governors, while the bottom 25 states with the highest decrease in state GDP were predominantly Democratic-run states.

Furthermore, the average unemployment rate across Republican states was 6.5% in August, compared to an average of 9% in Democrat states, according to an analysis of unemployment data by the Heritage Foundation, a conservative think tank.

Republican-controlled Utah had the second-lowest unemployment rate in the country in August at 4.1%, and the second-lowest GDP drop, at just over 18% in the second quarter. Nevada, run by Democrats, had the highest unemployment rate, at 13.2%. It was closely followed by Democratic-run Rhode Island, 12.8%, and New York, 12.5%. New York also had a GDP loss of 30%, putting it at 44th in the nation.

"The GDP data confirms that blue states are severely underperforming red states, even if there are some outliers for sure," said Stephen Moore, one of President Trump’s top economic advisers.

"It’s pretty clear blue states with the most severe lockdown had the most damage done to their economies," said Moore, who is also a contributor to the Washington Examiner.

He added that the Democratic strategy for containing the virus and keeping the economy afloat did not appear to be working, based on the latest economic data.
Posted by:Besoeker

#9  Liberals still won’t believe red states are in a better financial position than blue ones. Since they won’t be persuaded, we’ll have to wait until reality mugs them.
Posted by: trailing wife   2020-10-04 22:39  

#8  Sad thing is this is creating a migration away from the Blu states into the Red, and unfortunately they are bringing the very poison with them that destroyed their old states: progressivism and leftism.

You are welcome, your voting habits and political policies are NOT.
Posted by: Theager Borgia1057   2020-10-04 19:47  

#7  /\ Precisely. There is no [free-]market mechanism here just as there was none in the CCCP.
Posted by: Clem   2020-10-04 11:28  

#6  The federal reserve misprices via debt almost as badly as the USSR mispriced using price controls.
Posted by: Bright Pebbles   2020-10-04 11:23  

#5  It might behoove some to seek employment at the local grocery store, where they will have first dibs on food.
Posted by: Clem   2020-10-04 10:03  

#4  The line to get into the government-run supermarket, which can mean a wait of eight or 10 hours, was short, just two hours long.

This would run afoul of our basic Constitutional precept that Karen Won't Stand In Line. "I'd like to speak to the Commissar, please."
Posted by: Matt   2020-10-04 09:56  

#3  An open economy vs central planning. Who what have thought? Power before all else!
Posted by: Procopius2k   2020-10-04 09:36  

#2  /\ What food is available is often found only in government-run stores

You mean like Chinese product stuffed, Super Walmart stores ?

US consumers purchase the Chinese made junk. China pockets the money and buys US Government treasury notes (our national debt), along with corn and soy beans. A global money laundering scheme of sorts. Little wonder no one appears to be looking into the Wuhan incident in a serious manner.

No tipping of the apple carts please.

* Failed to mention, all of these transactions are taxed and tariffed at multiple levels.


Posted by: Besoeker   2020-10-04 09:29  

#1  Short related article, let's call it the Democratic 'end game.'

Cuba’s Economy Was Hurting. The Pandemic Brought a Food Crisis.

HAVANA — It was a lucky day for the unemployed tourism guide in Havana.

The line to get into the government-run supermarket, which can mean a wait of eight or 10 hours, was short, just two hours long. And better yet, the guide, Rainer Companioni Sánchez, scored toothpaste — a rare find — and splurged $3 on canned meat.

“It’s the first time we have seen toothpaste in a long time,” he said, sharing the victory with his girlfriend. “The meat in that can is very, very expensive, but we each bought one simply because sometimes in an emergency there is no meat anywhere.”

Cuba, a police state with a strong public health care system, was able to quickly control the coronavirus, even as the pandemic threw wealthier nations into crisis. But its economy, already hurting from crippling U.S. sanctions and mismanagement, was particularly vulnerable to the economic devastation that followed.

As nations closed airports and locked down borders to combat the spread of the virus, tourist travel to Cuba plummeted and the island lost an important source of hard currency, plunging it into one of the worst food shortages in nearly 25 years.

What food is available is often found only in government-run stores that are stocked with imports and charge in dollars. The strategy, also used in the 1990s, during the economic depression known as the “special period,” is used by the government to gather hard currency from Cubans who have savings or get money from friends or relatives abroad.
Posted by: Besoeker   2020-10-04 09:22  

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