The Economy Really Is Worse in Blue States. But Why?

[Chris]

The Economy Really Is Worse in Blue States. But Why? is a good study because it presents the complexities of economic recovery.

Seven months into the coronavirus crisis, the states with the most severe unemployment in the country all seem to have one thing in common: They vote blue....



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...Theory 1: It’s the Shutdowns

One obvious possibility is that blue states are struggling with higher unemployment because they’ve been more aggressive about fighting the pandemic....



Verdict: Public health restrictions might be weighing on the economy in some states, but that’s not nearly the whole story....

...Theory 2: It’s About the Industries That Dominate Different States

Blue states may also be in deeper economic trouble because they are more reliant on service industries that have been broadly hurt by the pandemic....



Verdict: Yes, when your major industries are decimated by a plague, it tends to hurt the local economy.

...Theory 3: It’s All the People Working From Home

You might assume having lots of professionals capable of working from home would be good for a state’s economy right now. But in some ways, it might be counterproductive, since white-collar employees who log into a virtual office on Zoom aren’t spending money buying lunch or getting their clothes dry-cleaned near their actual, brick-and-mortar offices....

Verdict: It probably isn’t a huge cause for their woes, but the number of white-collar professionals who are permanently WFH isn’t necessarily helping blue states economically either.

...Theory 4: Could It Be the Unemployment Benefits?

Some conservatives might be tempted to assume that blue states’ more plentiful unemployment benefits are keeping people from returning to work....



Verdict: No, the safety net is not turning into a hammock....

[Peter1469]

Lockdowns are the primary reason.

[MMC]

The Economy Really Is Worse in Blue States. But Why? is a good study because it presents the complexities of economic recovery.

The Demos are also raising taxes in their states and cities. Causing more people problems.

[Chris]

Lockdowns are the primary reason.

Yes I'd agree that's the most obvious and primary cause though types of industry and working from home have an effect.

Thought I reported on theory two elsewhere but cannot find it. NY, for example, has more face-to-face jobs than say TX.

[MMC]

The Economy Really Is Worse in Blue States. But Why?

Democrats!


Except For Locked-Down Blue States, America’s Economic Recovery From COVID-19 Is Amazingly Strong

The nation’s corporate media have mostly downplayed or ignored the U.S. economy’s remarkable performance following the COVID-19 lockdowns earlier this year.

In just five months, the unemployment rate has fallen by 45 percent from its April peak of 14.7 percent, and the economy has also regained just over half of the 22.2 million jobs lost in March and April. This is a far better performance than most economists expected. Media outlets far and wide, and even the Congressional Budget Office, originally predicted that it would take ten years for the economy to fully recover.



The government’s Bureau of Labor Statistics (BLS) told us on Oct. 2 that the nation’s seasonally adjusted unemployment rate in September was 7.9 percent (down from 8.4 percent in August), and that the economy added 661,000 jobs during the month.



Recent government data tells us we are seeing two recoveries. Most states have seen moderate to significant improvements in conditions since April, but ten states, in particular, have not.



While August’s jobless rate was 8.4 percent, the following ten states, according to the BLS’s Sept. 18 detailed report, turned in results above 10 percent. Most of the laggards were well above that double-digit threshold:


California: 11.4 percent
Hawaii: 12.5 percent
Illinois: 11.0 percent
Massachusetts: 11.3 percent
New Jersey: 10.9 percent
New Mexico: 11.3 percent
Nevada: 13.2 percent
New York: 12.5 percent
Pennsylvania: 10.3 percent
Rhode Island: 12.8 percent


These states have one thing in common: Their governors have imposed severe pandemic-related restrictions on economic activity, and they have been either been extraordinarily reluctant to or have directly refused to lift them, despite COVID-19’s diminishing mortality threat.


These ten states have just under one-third of the country’s population. Their combined population-weighted unemployment rate in August was 11.4 percent. This means the unemployment rate for the rest of the nation was below 7 percent.


That most of the rest of the U.S. economy is recovering far more robustly is a testament to the fact that Trump hasn’t caused the lagging states’ woes......snip~


https://thefederalist.com/2020/10/14...zingly-strong/

[Cotton1]

The Economy Really Is Worse in Blue States. But Why? is a good study because it presents the complexities of economic recovery.

Theory 3 is a good one and it does make a difference. Before I retired I was spending $30-50 per day on parking , gas , breakfast , lunch , dry cleaning etc. Multiply that by my co workers and many others it adds up.

[Cotton1]

In addition, rule #11 of the "48 laws of power" states " keep someone dependant on you and you control that person or people". Thats why the blue states have no problem with a bad economy. A large number of their base is all about "gimme". You dont ever hear the BLM movement asking what tbey can do for others and often ever what they can do for their own self.
Its about what can we do for them.

https://alexanderemmanual.medium.com...0you.%E2%80%9D

" Make people depend on you for their happiness and prosperity and you have nothing to fear. Never teach them enough so that they can do without you "

[MisterVeritis]

The Economy Really Is Worse in Blue States. But Why? is a good study because it presents the complexities of economic recovery.

Was there a discussion of the Democrat Party base rioting, looting, committing arson and murders in the top Democrat-run cities?

[Chris]

Was there a discussion of the Democrat Party base rioting, looting, committing arson and murders in the top Democrat-run cities?

No that wasn't included.

[MMC]

And make no mistake the Democrats and Biden will continue to keep their states on Lockdown. Regardless of Trump winning the election.