The Reality of Right vs. Left in the Midwest

BY KEVIN DEUTSCH

The recent New York Times editorial by Professor Lawrence R. Jacobs misrepresents how Republican Governor Scott Walker of Wisconsin and DFL Governor Mark Dayton of Minnesota have led their states through the economic recovery. Jacobs compares the two Midwestern states, which elected governors from different parties in 2010, as a sort of case study for why progressive policies work.

Professor Jacobs seems to overlook the fact that Wisconsin was hit by the recession much harder than Minnesota was, and suffered longer. Wisconsin’s peak unemployment rate was 9.2% in July 2009 and January 2010, while Minnesota’s peak unemployment was 8.3% in June 2009. After June 2009, Minnesota began its recovery, a full six months before Wisconsin did. The states have actually been recovering at almost the same rate. Wisconsin’s unemployment rate has been falling—on average—by about 0.058% per month of recovery, and Minnesota’s unemployment rate has been falling—on average—by about 0.066% per month of recovery. I would like to point out that Minnesota’s recovery began under Tim Pawlenty, a Republican governor, and Wisconsin’s recovery began under Scott Walker, another Republican.

Despite raising taxes on its residents to account for an increase in spending, Minnesota has had massive budget deficits under Mark Dayton. In coming years, Minnesota will need to spend more on debt service, and will probably need to make difficult cuts. On the other hand, Wisconsin has had balanced budgets under Scott Walker. This is because Walker and the Republican legislature reined in out-of-control public sector pensions. Because Wisconsin’s spending is now under control, it will be better able to provide for its residents in the future. In fact, Wisconsin has seen an unprecedented budget surplus this year. This will mean the state government can cut taxes, and let Wisconsinites decide what to do with their own money. With more money left in the pockets of taxpayers, consumer spending should increase in Wisconsin, catalyzing the recovery there.

Perhaps fiscal responsibility is better than spending on services you can’t afford.