Red State, Low Unemployment; Blue State, High Unemployment

Unleash Prosperity Hotline
Issue #354
08/23/2021
1) Red State, Low Unemployment; Blue State, High Unemployment

More evidence that everything Democrats touch, they break.

Here are the latest unemployment numbers by state. Notice that seven states have jobless rates above 7% — and sure enough, all of them are blue states.

Eight states have unemployment rates under 3.5% – which is considered full employment – and seven of the eight are completely controlled by Republicans – house, senate and governor. On average, red states have unemployment rates one-and-half-percentage points lower unemployment. (As regular readers of the HOTLINE know, this wide red state-blue state differential has been going on now for almost a year and a half.)

A special shout out to one of our favorite governors, Pete Ricketts of Nebraska for having the lowest unemployment rate in the nation.

Blue states like California, New York, and Illinois are FINALLY starting to see some decent job growth because they FINALLY have reopened their businesses. This development has the New York Times gloating that a new study finds that blue states that continue to pay the $300 a week bonus unemployment benefits “have not hurt job growth.” Talk about junk science. These blue states would have to create hundreds of thousands of new jobs above the national trend for many months to come anywhere close to catching up with red states.

2) Cities That Were Supposed To Be Broke Are On A Spending Spree

Remember earlier this year when Congress rushed through its $1.9 trillion Blue State Bailout bill masquerading as a “stimulus package?” We now know the impetus for that emergency bill – that cities and states were running out of money to pay for basic services – was another lie. 

As we pointed out in objecting to that bill six months ago, the economy was ALREADY roaring back and a Blue State bailout wasn’t necessary to maintain vital services. 

The website SiliconValley.com reports on what really happened to the stimulus bonanza that went to supposedly cash-depleted California cities. “A funny thing happened on the way to municipal meltdown. Boozing, gambling and shopping boosted California’s tax coffers. Property values surged. And the federal government stepped in with a mighty $8.2 billion in stimulus funds.”

https://www.siliconvalley.com/2021/08/21/municipal-meltdown-recedes-as-stimulus-funds-gush-into-cities-state-auditor-says/

California’s state auditor puts it this way: “Actually, city revenues are pouring in. … Our analysis shows that the vast majority of California cities will receive more stimulus money than they lost during the pandemic.”

Amazingly, cities are seeking a second round of bailout money. Jill Oviatt of the League of California Cities, claims “with our economies still fragile, an ongoing pandemic, and wildfires threatening our communities throughout the state, we will continue to advocate for funding so that all of our cities are able to recover.” Does she mean “recover” from their ongoing spending binge. 

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