Tax and Spend vs. Tax Cuts and Trickle Down

In the Social Sciences, it's pretty hard to run an experiment like the physical sciences. When I was in the chemistry lab, I could hold all the variables constant save one, perhaps changing from one stereoisomer to another or increasing the concentration of the reactants or adding an enzyme. In the social sciences, that is, in the real world, there are so many variables involved, and indeed, the ethics of dealing with people, makes it very difficult to control the factors involved to really call it an experiment. Nevertheless, social scientists, economists and politicians are experimenting all the time and telling us how the world should operate.

That's why I think it's so interesting to look at what's going on in Minnesota and Wisconsin. In case you have forgotten what they look like, I've included a map:

They are right next door and share a common border, so they share a common environment. Both states shared a common heritage of a century of midwestern progressive politics. But in 2010, Scott Walker was elected Governor in Wisconsin, and started down a road of Conservatism that has delighted the Republican party and led to his presidential run in the 2016 race. It has also led to Wisconsin's slide to 44th in job growth¹ amongst the 50 states.

In Minnesota, right next door, Mark Dayton has been pursuing the kind of tax and spend policies that Republicans love to pan, a la The Donald, but it has been leading to job growth in Minnesota's favor. Dayton is the great-grandson of the founder of the department store which became Target, and was coined a "failed" single term senator, and came home to run the state to the left.

In the two states, you have the two parties, operating to their respective core beliefs. On the right, Wisconsin, starve the government, cut-taxes, cut government job, restrict workers rights, bolster business options, restrict labor bargaining. On the left, Minnesota, raised the minimum wage, increased taxes on the top 2% of wage earners, increased expenditures for education and infrastructure, and funding for state level of the Affordable Care Act.

There is one difference between the two: Dayton isn't going anywhere. He has no ambition for higher office. Walker, of course, has his sights on the oval office; more than that, his hat's in the ring. He's already stomped on Wisconsin. Now he wants to walk all over the whole country.

Interestingly enough, republicans in Wisconsin are starting to rebel. The budget shortfall is starting to worry them, and they are balking at any more tax cuts. Walker is still pushing, and is dead set against raising taxes or fees. How low can you go?

^{1. Daily Beast Article 07.10.15 "Scott Walker Gets Schooled By His Neighbor" ↩}