Dean Baker loses his mind again in trying to prove that Democratic economics are better than Republican economics. He writes today that Wisconsin’s economy, led by a Republican governor, is “unimpressive” compared to neighboring Minnesota, which is led by a Democrat. I find the difference between the two states “unimpressive,” but judge for yourself.
He tells us that Wisconsin’s Republican unemployment is 3.0 percent, while Minnesota’s Democratic unemployment is a mere 2.9 percent. I am much less impressed by one tenth of one percent than he is.
He then tells us that Republican Wisconsin’s 5.0 percent wage increase in the past year doesn’t matter because “these numbers are extremely erratic.” He doesn’t tell us what wage increase was experienced in Democratic Minnesota last year because he doesn’t pay attention to erratic numbers.
I would suggest that month-to-month numbers are indeed very erratic. Numbers for an entire year? It may be very convenient to think so.
He does tells us that over the past eight years Wisconsin’s Republican wages rose 24.7 percent, while Minnesota’s Democratic wages rose a stratospheric 24.9 percent. Again, I am much less impressed by, in this case, two tenths of one percent than he is. It amounts to a difference of eight tenths of one percent which, in my book, is nothing more than a rounding error.
All of this, in my view, matching economic performance was accomplished while Democratic Minnesota raised taxes and Republican Wisconsin reduced taxes, which he cheerfully states is a point in Democratic Minnesota’s favor.
Because raising taxes is a good thing, even when the economy performs the same as one which reduced taxes. Let’s hear it for Democratic economics.
And, by the way, it doesn't seem to occur to Mr. Baker to consider the effect on the two tenths of a percent difference of wage increase between the states made by tax increase in one state and tax decrease in the other. Republican Wisconsin wages went up slightly less, but their taxes went down. Democratic Minnesota saw a slightly higher wage increase, but their taxes went up. Who came out ahead?
He does say that the Rub Wisconsin doesn't count unemployed people in order to drive down their stats. Um... doesn't everyone do that? The Feds do, right?
ReplyDeleteOh and investing in education and infrastructure is normally a good thing, right? But "investing in education" is often obfustication for salaries /pensions /etc, which is usually a large percentage of the cost involved. Coincidentally, these would be union members, usually voting democratic.