What do bitter Rust Belt states have in common?
posted at 10:59 am on May 17, 2008 by Ed Morrissey
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The Wall Street Journal takes a closer look at the commonalities between states identified as “bitter” by Barack Obama, and finds one thread that runs through their economies. Jeff Durstewitz notes that Pennsylvania, Ohio, and Michigan all have state governments that overtax and overregulate, and protect unions at the expense of workers and jobs:
In the firestorm touched off by Barack Obama’s comments about those who “cling to” guns and religion out of economic resentment, most analysis missed a crucial point: The “bitterness” felt in the so-called Rust Belt is mainly a product of high-tax, highly unionized states.
While there are pockets of prosperity in Pennsylvania, upstate New York, Ohio and Michigan, a good deal of this area is economically depressed. That’s not because of Washington’s policies (or lack thereof). These policies aren’t killing Texas, North Carolina, Georgia, Arizona, Nevada and Florida.
While southern states do have problems, their governments generally don’t smother economic growth by layering on ever-rising taxation, regulation and expenses. They don’t permit workers to be forced to join closed-shop unions. No one in D.C. – Obama, Clinton, McCain or Superman – can fix the Rust Belt’s self-inflicted wounds.
No one doubts that these states have had a rougher time with their economies than the nation as a whole, but as this column points out, that should focus attention on what makes these states different from those experiencing more success. They have ossified their economic philosophies, thanks to political classes held in thrall by Big Labor and liberal regulators, and now act surprised when investors place their resources in states with better flexibility and more freedom. Rather than looking for federal bailouts, these states should tend to their own back yards and revamp their entire approach to business and investment.
Instead, Barack Obama offers them the hair of the dog. In his San Francisco remarks, his point was that voters in these states mistrust government solutions, and so they bitterly cling to bigotry, guns, and God. He wants to roll out even more government intrusion and redistributionism, which non-urban voters in these states rightly see as the source of their problems and not the solution to them. They want less government and more private-sector investment, and they want both state and federal governments to stop taxing them to death to support failing programs centered on the urban areas of their states.
Barack Obama promises them more of the same old failed approach. They’re not bitter; they’re just far more experienced than Obama with these policies.
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Ah, but the cities are where the *cool people* are, so that’s where the main sewer media focus their attention. Doesn’t hurt that the MSM workers have all adopted the ‘cool new socialism’ values that go along with it….
This cannot end well. We have to figure out a way to talk to each other again.
Mew
acat on May 17, 2008 at 11:07 AM
And of course telling the truth ab out this will only have the left crying about the bitter Wall Street Journal.
thekingtut on May 17, 2008 at 11:08 AM
I really wish the term “Rustbelt” would become unacceptable to use. It’s such a smear.
MayBee on May 17, 2008 at 11:13 AM
Obama is an extemporaneous disaster…blaming his pending loss in Kentucky on Fox News, emails, and the fact that Kentuckians don’t know him, since Hillary is from the “nearby” state of Arkansas. Last time I checked the map, Illinois was close to Kentucky.
God, please, don’t punish us with this fellow.
eaglesdontflock on May 17, 2008 at 11:16 AM
I appreciate having blogs to read on Saturday, but c’mon Ed! Six posts already? Enjoy your weekend some :)
fiatboomer on May 17, 2008 at 11:17 AM
That should be a joke. Major Garret almost sounds like an Obama campaign-aide. BOR want to cut him slack on ANYTHING - he badly want him on his show.
Anita on May 17, 2008 at 11:35 AM
I’m so glad someone finally said it.
I know numerous people besides me who thought of moving back home to the Midwest only to find that the “cheap” real estate is largely a mirage: the property taxes on a home in Wisconsin comparable to mine, for instance, would be nine times what they are in California.
This is why these states are sinking; in a way, they resemble their northern neighbor, Canada, in regulation and taxes and scorn for entrepeneurship.
PattyJ on May 17, 2008 at 11:44 AM
I expect Ohio Valley voters to continue clinging to whichever lever doesn’t have Obama’s name next to it, and mainly because of the reasons mentioned in the post. I’m not so sure about the upper midwest Great Lakes states, where things are usually more leftist. Why that’s so, I don’t know. PattyJ seems to be sick of the high taxes, and hopefully some others are too.
forest on May 17, 2008 at 12:02 PM
Ah, yes, but Chicago, you see, is not close to Kentucky, and Chicago is all that matters to most people here in Illinois. If it’s south of I-80, it doesn’t count.
Buford Gooch on May 17, 2008 at 12:04 PM
As in my previous post, it isn’t the state that’s leftist, it’s just the urban areas.
Buford Gooch on May 17, 2008 at 12:06 PM
You make great points Ed I wish Republicans would make this arguement, loudly.
Theworldisnotenough on May 17, 2008 at 12:11 PM
I came to AZ in the 70s. I left MI, part of the rust belt. It was over taxed, and over regulated and extremely pro union then. It is now the same X 10… I moved to AZ to get away from the madness. Now in AZ we have refugees from MI,IL,MN,OH,WI,PA, NY,NJ, and of course CA. All coming here to escape the taxes, regulation, and pro-union mind set…And guess what we hear from our new residents. WELL, THE WAY WE DID IT IN (insert former state here, say MN) WAS THIS WAY!!!! You see, the very reason they left THEIR SHANGRI LA, they want to turn my SHANGRI LA INTO!!!!
pueblo1032 on May 17, 2008 at 12:24 PM
Buford,
I don’t doubt that the urban areas are more liberal, but aren’t the property taxes PattyJ was complaining about levied by local municipalities or school districts? That’s the way it works around here, but it could be a statewide thing up there for all I know.
forest on May 17, 2008 at 12:25 PM
Obama never said he was running on experience. I believe it was unjustifiable hope and unspecifiable change.
Barack Obama. Status Quo you can bet on.
BKennedy on May 17, 2008 at 12:29 PM
Oh come on now. First you claim that the rust belt states are all local problems, and then somehow use that as a hammer to bash Obama, who is a running for a federal position? That doesn’t even make sense.
As a native of Pittsburgh and former citizen of Cleveland, I will agree the rust belt states have a real problem: they’ve hooked themselves to older industries which are either becoming obsolete or being moved out of the country. And no new industries (technology, health care, etc) have moved in to take their places.
And that has nothing to do with labor unions or taxation. Witness the rapidly rising cities of the west coast, which do have the newer industries, and yet are union friendly.
“Scorn for entrepeneurship” is laughably stupid. Of course these places are desperate for new industries. But the workshop isn’t there because all the young or higher skilled people have moved away. And the manufacturing jobs likely aren’t coming back.
e-pirate on May 17, 2008 at 12:30 PM
Oops meant “work force.”
e-pirate on May 17, 2008 at 12:34 PM
. . . and run by the democrat party.
Everyone in Michigan complains bitterly about how bad everything is and yet they keep voting democrat.
rockhauler on May 17, 2008 at 12:47 PM
It’s like the question I often ask as to why black folks are such a strong voting bloc for democrats. If black folks are so distrusting of the government (and they should be), then why do they vote for the party that thrusts MORE government upon all of us? IT.MAKES.NO.SENSE.
SouthernGent on May 17, 2008 at 12:54 PM
As you know, Philadelphia and Pittsburgh to a lesser extent, control PA’s state government, too often at the expense of the non-urban areas. Most folks in smaller towns and rural areas would agree with your analysis, Ed. Most non-urban folks are losing patience with being required to subsidize people whose values they cannot respect, and practices they find reprehensible.
petefrt on May 17, 2008 at 12:55 PM
Is that what they’re saying? That’s kind of funny. They blamed Obama’s loss in Pa. on the fact that Hillary was “from” Pennsylvania (because her grandfather apparently owned a cabin in Scranton at some point in time). Hillary is not “from” Pennsylvania . . . or Kentucky . . . or Arkansas . . . or even New York. She was born and raised in the Chicago area. (Thanks a lot, Illinois).
AZCoyote on May 17, 2008 at 1:32 PM
Right on, Ed. Also, if I remember correctly (citations anyone), polling data indicates Republicans, in general, report themselves much happier than Democrats. Talk about Leftist projection. Or, to put it another way, who’s really suffering from “false consciousness”?
Dr. Charles G. Waugh on May 17, 2008 at 1:42 PM
..Son of a B?
Reaps on May 17, 2008 at 1:42 PM
They forgot one other thing these states have in common. The flight of highly educated young people from those states as the unions, high taxation, and regulations force college grads like myself to flee PA and set up shop in North Carolina.
unseen on May 17, 2008 at 1:57 PM
Captain, not sure that your analysis is entirely on target. You’re comparing different types of economies- ones based on manufacturing (Michigan, Pennsylvania) to those that are more service or tech driven (Texas, Nevada, Arizona) and with much lower standards of living (deep south).
One thing we know about Detroit is that breaking unions and/or other reforms won’t save the auto industry from the incredible stupidity of its executives. So you may be right that government policies could be improved, there’s no reason to think it would turn the situation around anytime soon. Not as long as China continues to kill off American manufacturing jobs at a brisk rate.
bayam on May 17, 2008 at 1:59 PM
Those gutter balls he rolled were no accidents.
whitetop on May 17, 2008 at 2:03 PM
.
bayam, having lived or worked in most of these states, I can tell you the standard of living is not lower in Texas, Nevada, or Arizona, or the deep south, but in fact is higher. Also, manufacturing is alive and well (and kicking the midwest’s butt) in the states you mentioned, mainly due to low or no union activity.
Think_b4_speaking on May 17, 2008 at 2:07 PM
forest,
Yes, municipalities determine property taxes in WI, so there is variability. But all are higher than CA’s tax, which is statewide.
Can you imagine $9000 in property taxes for a small bungalow in a suburb of Milwaukee? That’s why people think twice about moving there. Of course, the media always say it’s the sun that draws people to places like Las Vegas and Arizona–because they don’t want to disparage the concept of a high tax socialist paradise.
PattyJ on May 17, 2008 at 2:20 PM
e-pirate on May 17, 2008 at 12:30 PM
If it weren’t for the public sector and agriculture, you wouldn’t know what a union was in California. How is this union-friendly?
cthulhu on May 17, 2008 at 2:23 PM
I live in Indiana and I think that a lot of the problems here are with the state and local governments. They shun anything new. They hope for a bygone era that was not half as good as they think it was.
Property taxes are a huge issue here and slow job growth. But the unions still have sway in some industries and they just blame the foreigners.
Up at Bloomington GE finally closed. The state waived their taxes for a decade. The local government built and maintained their road. And still they closed. Most of the work force will go on pension right away, the rest will receive benefits until they are retrained and have new jobs.
Now if I lose my job, I am just SOL.
No, this place needs to change.
Terrye on May 17, 2008 at 2:42 PM
GE is selling its appliance division, which is a big employer in Louisville KY. Obama decided he was too busy to campaign in Louisville to give his don’t worry, be happy speech. But Michelle will be there Monday. Wonder if she will “Yes we can” the folks there.
And bayam, suggest you visit Tennessee-you know, the one with fairly low property taxes and no income tax. The Williamson County suburb of Metro Nashville is the 4th highest per capita income county in the nation. Major manufacturers are moving plants into Tennessee and keeping other facilities that were once scheduled for closing. In Nashville, the new Whole Foods Market was recognized as the 2nd highest contributer in the nation to the Whole Foods charity drive.
The Metro unemployment rate dipped for the past two months, and housing prices have increased even in a slow market.
Surely something is wrong there.
eaglesdontflock on May 17, 2008 at 2:53 PM
I have invested a good amount of mental energy examining that question. Another that perplexed me was why so many black people are socialists?
Here is my preliminary analysis.
Black people do not trust the “government” but the government does not mean Democrats. Democrats “look out” for black people, i.e. pander relentlessly and that is what matters, results do not. And “governmnet” is a generic catchall for racist white people in the black lexicon. The concepts of Federalism have almost no place in black political thought. And understanably so. The President ended slavery the federal government gauranteed civil rights, etc. So the government is a legitimate body to “help” black people. And as long as Democrats can wear the cloak of “helping” black people with the power of government they are seen as natural allies. And what alot of black people hate to admit is that the identify black people (and themselves) with welfare. So welfare reform is anti-black, and those evil Republicans just want to “hurt” black people instead of Democrats that want to “help” black people.
But I have hope for the future. I spend a great amount of time communicating conservative policy positions, to as many people as I can. I give them a choice between two policy choices and they choose 9 out of 10 conservative position. I then welcome them to the GOP. Sometimes the light goes on, sometimes they are disgusted that they were tricked into being conservative. I also know alot of conservative black people, too many of us have acquired a college degree or specialized knowledge and are now miccle class. We want lower taxes, we want a better economy because we are investing in the stock market more. Then I articulate the argument against illegal immigration. That bubble has yet to burst but when it does… I can tell you the black representatives in LA are looking over thire shoulders. Should Hispanics brea ka little to hard for McCain you just might see a large shift in voting habits.
Enough rambling.
Theworldisnotenough on May 17, 2008 at 4:02 PM
Unions were necessary in the 1910s & 20s, but workers are treated much better today, & there is a robust middle class that didn’t exist back then. Todays unions are too demanding, too shortsighted, & too political.
jgapinoy on May 17, 2008 at 4:21 PM
GDP by state:
http://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP_per_capita_%28nominal%29
If any of these states were highly dependent on the US auto industry, jobs would be moving out as well- unions or not.
Anyway, the list of states with higher taxes and strong union laws is highly selective: New York and Massachusetts aren’t exactly bad places to live or work.
bayam on May 17, 2008 at 6:05 PM
Rhode Island has the same problems but havn’t seemed to notice.
jeanie on May 17, 2008 at 8:39 PM
You missed the key words entirely. It was standard of living not GDP and I think you meant GSP anyway by the looks of your link.
Guardian on May 17, 2008 at 8:53 PM
Re: Front page picture. My 7 year old had his birthday party today at a bolling alley. Even the 5 yr olds did better than Barak.
Clark1 on May 17, 2008 at 9:05 PM
If you were starting a manufacturing business or expanding a manufacturing business, would you start/expand it in Michigan, Ohio, Pennsylvania, Illinois, Wisconsin or Minnesota?
Not a chance - heavy tax rates, high property taxes, labor laws are skewed towards unions, wages are high, etc.
That says it all.
Dr. Bob on May 17, 2008 at 9:48 PM
Cap’n:
In a typical election you would have a point. Unfortunately, this will not be a typical election.
The economy has not yet cratered completely, but should just in time for the general election. Obama, unfortunately, will be the next President.
Whether or not the GOP becomes irrelevant for the next 40 years depends upon someone with integrity and gonads standing up and saying enough.
See here:
Note that he really is prescribing a free market solution - letting the markets resolve the situation in lieu of more government intervention.
It just means that some lobbyists are going to have to be ignored for awhile.
How hard could that be?
olddeadmeat on May 17, 2008 at 11:01 PM
The best campaign strategy seems to be to just ask Obama what he thinks of people and post it on the Web
Saves alot of cash
EricPWJohnson on May 17, 2008 at 11:42 PM
What do bitter Rust Belt States have in common?
POSTVILLE, IOWA
Can you get over this “hometown to the world”?
50% of the children being educated at the expense of citizen taxpayers are ILLEGAL ALIENS.
The town’s employer Agriprocessors is f*cking the nation.
Ew, ground human fingers in the beef. How difficult can it be for Americans to boycott products of AGRIPROCESSORS?
Meanwhile, note well that the Bush presidency waited 8 years to make moves against employers of illegal aliens. Then in the show, they also cover their tracks of having neglected to prosecute employers violating child labor laws. So 18 juveniles were arrested amongst the illegal alien employees at this plant, being deported so that the Bush record on “no child left behind” looks clean. This is disappointing!
How Iowa goes, goes the nation. The Rust Belt has its share of carpetbagger employers of illegals as does the Sun Belt, the Bible Belt, or any other belt Americans wear. The stupid argument that prosecution is futile needs a good belt whoopin’ across the ass.
maverick muse on May 18, 2008 at 8:38 AM