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Archive for the ‘Rankings’ Category

At the risk of oversimplifying, libertarians want to minimize the level of government coercion is society. That’s why we favor both economic liberty and personal liberty. Simply stated, you should have the right to control your own life and make your own decisions so long as you’re not harming others or interfering with their rights.

That’s a philosophical or moral argument.

There’s also the utilitarian argument for liberty, and that largely revolves around the fact societies with more freedom tend to be considerably more prosperous than societies with lots of government.

I’ve repeatedly made this argument by comparing the economic performance of market-oriented jurisdictions and statist ones.

Let’s look at some new evidence. Based in Lausanne, Switzerland, the Institute for Management Development is a highly regarded educational institution that publishes an annual World Competitiveness Yearbook that basically measures whether a nation is a good place to do business.

So it’s not a measure of economic liberty, at least not directly. And the quality of governance matters for the IMD rankings (presumably based on something akin to the European Central Bank’s measure of “public sector efficiency“).

But you’ll notice a clear link between economic liberty and competitiveness.

Here are the top-10 nations. (you can look at the rankings for all nations by clicking here).

As you might suspect, there’s a strong correlation between the nations that are competitive and those that have smaller governments and free markets.

Indeed, three out of the top four jurisdictions (Hong Kong, Singapore, and Switzerland) rank in the top four for economic liberty according to Economic Freedom of the World.

And I’m happy to see that the United States also scores very highly, even if we only rank 17 out of 157 for economic freedom.

Indeed, every country in IMD’s top 10 other than Sweden is ranked in the top quartile of EFW.

You also probably won’t be surprised by the countries getting the worst scores from IMD.

Congratulations to Venezuela for being the world’s least competitive nation. Though that might be an overstatement since IMD only ranks 61 jurisdictions. If all the world’s countries were included, Venezuela presumably would beat out North Korea. And maybe a couple of other squalid outposts of statism, such as Cuba.

It’s also worth noting that Greece gets consistently bad scores. And I’m not surprised that Argentina is near the bottom as well (though it has improved since last year, so hopefully the new government will continue to move in the right direction).

By the way, it’s worth noting that economic freedom is a necessary but not sufficient condition for competitiveness. Jordan, for instance, ranks in the top 10 for economic freedom but gets a low score from IMD, presumably because the advantages of good policy don’t compensate for exogenous factors such as geopolitical risk and access to markets.

The moral of the story, though, is that free markets and small government are the recipe for more prosperity. And those policies are probably even more important for nations that face exogenous challenges.

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There’s no agreement on the most important variable for state tax competitiveness.

I’m sympathetic to the final option, in part because of my disdain for the income tax. And if an income tax is imposed, I prefer a simple and fair flat tax.

With that in mind, here’s a fascinating infographic I received via email. I don’t know if Reboot Illinois is left wing, right wing, or apolitical, but they did a very good job. I particularly like the map showing zero-income tax states (gray), flat tax states (red), and states with so-called progressive tax schemes (blue).

For what it’s worth, Illinois taxpayers should fight as hard as possible to preserve the state’s flat tax. If the politicians get the power to discriminate among income classes, it will just be a matter of time before all taxpayers are hit by higher rates.

Now let’s shift to the spending side of the fiscal ledger.

Like any good libertarian, I generally focus on the size of government. I compare France with Hong Kong and that tells me that big is bad and small is good.

But regardless of whether a government is large or small, it’s desirable if it spends money efficiently and generates some benefit. I shared, for instance, a fascinating study on “public sector efficiency” from the European Central Bank and was not surprised to see that nations with smaller public sectors got much more bang for the buck (with Singapore easily winning the prize for the most efficient government).

So I was very interested to see that WalletHub put together a report showing each state’s “return on investment” based on how effectively it uses tax monies to achieve desirable outcomes for education, health, safety, economy, and infrastructure, and pollution.

I’m not completely comfortable with the methodology (is it a state government’s fault if the population is more obese and therefore less healthy, for instance, and what about adjusting for demographic factors such as age and race?), but I nonetheless think the study is both useful and interesting.

Here are the best and worst states.

One thing that should stand out is that the best states are dominated by zero-income tax states and flat tax states.

The worst states, by contrast, tend to have punitive tax systems (Alaska is a bit of an outlier because it collects – and squanders – a lot of revenue from oil).

By the way, if you’re a Republican, you can probably give yourself a small pat on the back. The so-called red states do a bit better than the so-called blue states.

P.S. WalletHub put together some fascinating data on which cities get a good return on investment (i.e., bang for the back) for spending on police and education.

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The Index of Economic Freedom, my favorite Heritage Foundation publication, was released today.

As one might predict, Hong Kong once again ranks as the jurisdiction with the most liberty to engage in mutually beneficial exchange, followed by Singapore. Other highly ranked nations include New Zealand, Switzerland, and Australia.

Chile deserves special attention since it is the highest-ranked nation from its region and also the highest-ranked nation from what is considered to be the developing world. Estonia also deserves plaudits for being the highest-ranked nation to emerge from the former Soviet Empire.

The United States, sadly, isn’t in the top 10.

Now let’s look at some of the details from the report, starting with the important observation that good policy produces good results.

…lasting prosperity is a result of a persistent commitment to limited government, strong private property rights, openness to global trade and financial flows, and sensible regulation. Together, these interrelated factors have been proven to empower the individual and induce dynamic entrepreneurial activity. …nations that have focused on improving their competitiveness and opening their societies to new ideas, products, and innovations have done a much better job of achieving the high levels of social progress.

Looking at specific data, the good news from a global perspective is that there’s never been more economic freedom.

…economic freedom has advanced for the fourth year in a row. The world average economic freedom score for 178 economies…recorded an overall average improvement of 0.3 point from the previous year. The global average economic freedom score of 60.7 is the highest recorded in the 22-year history of the Index.

To be sure, a global average of less than 61 percent means a barely passing grade. But that’s better than a failing grade.

Moreover, there’s been some noteworthy improvement in selected countries.

Hong Kong, Singapore, New Zealand, Switzerland, and Australia…earned the designation of “free” with scores above 80. …Ninety-seven countries, the majority of which are less developed, gained greater economic freedom over the past year; 32 countries, among them Burma, Germany, India, Israel, Lithuania, the Philippines, Poland, and Vietnam, achieved their highest economic freedom scores ever in the 2016 Index. …Score improvements in eight countries were significant enough to merit upgrades in the countries’ economic freedom status in the Index. Notably, Latvia became a “mostly free” economy for the first time.

But we also have some bad news.

Declining economic freedom was reported in 74 countries, including 19 advanced economies such as the United States, Japan, and Sweden. …Within the top five freest economies, Switzerland is the only economy whose overall score did not decline in the 2016 Index.

Indeed, I’m worried that Hong Kong’s score fell by a full point and Singapore tied for the 5th-biggest decline with a drop of 1.6 points. Those two jurisdictions are supposed to be role models!

And if you’re an American reader, you probably won’t be happy to learn that the United States has never had a lower score.

The United States continues to be mired in the ranks of the “mostly free,” the second-tier economic freedom category into which the U.S. dropped in 2010. Worse, with scores in labor freedom, business freedom, and fiscal freedom notably declining, the economic freedom of the United States plunged 0.8 point to 75.4, matching its lowest score ever.

You can see from this chart how policy has been moving in the wrong direction.

I don’t want to be overly glum. Only 10 nations rank above the United States and more than 160 jurisdictions get lower scores. And being “mostly free” is better than being “moderately free” or “mostly unfree.” Or, Heaven forbid, being a “repressed” nation such as Argentina, Venezuela, Cuba, or North Korea.

That being said, the trend is not in the right direction. Heck, America is only 1/10th of a point ahead of Denmark (though, to be fair, Bernie Sanders would be horrified to learn that the Danes have very pro-market policies once you get past their awful fiscal system).

One final comment. The much-vaunted BRICS have hit a speed bump.

Progress among the so-called BRICS nations (Brazil, Russia, India, China, and South Africa) has stalled, except in India, which improved by 1.6 points. Russia plunged 10 places in the rankings to 153rd, with its score deteriorating by 1.5 points. The rankings of the other BRICS countries—South Africa, Brazil, and China—declined to 80th, 122nd, and 144th, respectively.

By the way, India’s improvement is welcome news, but don’t break out the champagne. It still only ranks #123 in the world, which is not a recipe to become an Asian Tiger.

Indeed, the big lesson from the BRICS (as I’ve explained in my analyses of Brazil, South Africa, and China) is that a little bit of economic liberalization is a good thing and  can help save a huge number of people from destitution. But you don’t become a rich nation with “mostly unfree” policy.

P.S. While I’m a big fan of the Index of Economic Freedom, I’m an even bigger fan of Economic Freedom of the World. But both tell a very similar story about the relationship between good policy and good outcomes.

For more information, here’s the video I narrated on the recipe for growth and prosperity.

P.P.S. Even though my 2012 predictions for the Iowa Caucus were less than stellar, some folks have emailed to ask what I think will happen this evening.

For what it’s worth, here’s my best guess.

For the GOP:

Cruz                  28
Trump               27
Rubio                19
Carson               8
Paul                    7
Bush                   4
Christie               2
Santorum           2
Fiorina                1
Kasich                 1
Huckabee           1

For the Dems:

Hillary               55
Bernie               45

But don’t place any bets on this basis. After my near-perfect 2010 prediction (at least for the House), my predictions for the 2012 and 2014 elections were decent at best.

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Federalism is great for many reasons. When you have dozens of states with the freedom to choose different policies, you get lots of innovation and diversity, which helps identify policies that work.

You also can minimize the cost of mistakes. When a policy error occurs in one state (for example, government-run healthcare in Vermont), it quickly becomes obvious and the damage can be contained and maybe even reversed. But when a mistake is made nationally (such as Obamacare), it’s not as easy to pinpoint why the economy is weakening and fixing the error thus becomes more difficult.

And it should go without saying that federalism is desirable because it facilitates and enables competition among jurisdictions. And that limits the power of governments to impose bad policy.

These are some of the reasons why I’m a huge fan of the Tax Foundation’s State Business Tax Climate Index. It’s a rigorous publication that calculates the good and bad features of every state’s tax system. It then add together all that data to generate a very helpful ranking of the nation’s best and worst state tax systems.

And since that’s what people care most about, let’s cut to the chase and look at the states at the top and the bottom of the Index.

There are a couple of things which should be obvious from these two lists.

First, it’s a very good idea to be part of the no-income-tax club. It’s no coincidence that 7 out of the top 10 states don’t have that pernicious levy.

Second, perhaps the biggest lesson from the states in the bottom 10 is that it’s basically impossible for a state with a big government to have a good tax system.

Third (and here’s where I’m going to be a contrarian), I’m not sure that Wyoming and Alaska really deserve their high rankings. Both states use energy severance taxes to finance relatively large public sectors. And while it’s true that energy severance taxes don’t do as much damage to a state’s competitiveness as other revenue sources, I nonetheless think there should be an asterisk next to those two states.

So I actually put South Dakota in first place (though I realize I’m implicitly incorporating government spending into the equation while the Tax Foundation is only measuring the tax environment for business).

Now that we’ve hit the main highlights, here’s some explanatory information from the Index.

…the Index is designed to show how well states structure their tax systems, and provides a roadmap for improvement. …The absence of a major tax is a common factor among many of the top ten states. …This does not mean, however, that a state cannot rank in the top ten while still levying all the major taxes. Indiana and Utah, for example, levy all of the major tax types, but do so with low rates on broad bases. The states in the bottom 10 tend to have a number of afflictions in common: complex, non-neutral taxes with comparatively high rates.

And here’s some details about the Index’s methodology.

The Index…comparing the states on over 100 different variables in the five major areas of taxation (corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and property taxes)… Using the economic literature as our guide, we designed these five components to score each state’s business tax climate…The five components are not weighted equally… This improves the explanatory power of the State Business Tax Climate Index as a whole. …this edition is the 2016 Index and represents the tax climate of each state as of July 1, 2015, the first day of fiscal year 2016 for most states.

Here’s a map showing the ranking of every state.

Top-10 states are in blue and bottom-10 states are in orange. At the risk of repeating myself, notice how zero-income tax states rank highly.

The Wall Street Journal editorial page combed through the report for highlights. The biggest success story in recent years is North Carolina, which joined the flat tax club.

…North Carolina, which in 2013 slashed its top 7.75% income tax to a flat 5.75% and its corporate rate to 5% from 6.9%. The former 44th is now ranked 15th.

Given Martin O’Malley’s horrible record in Maryland, I’m surprised that he hasn’t picked up more support from crazy lefties in the Democratic Party.

As Governor of Maryland from 2007 to 2015, Democrat Martin O’Malley increased some 40 taxes including the corporate rate to 8.25% from 7% and the sales tax to 6% from 5%.

And here’s some good news from an unexpected place.

The trophy for most-improved this year goes to Illinois, which jumped to 23rd from 31st… The Tax Foundation notes that the leap occurred “due to the sunset of corporate and individual income tax increases”… First-year Republican Governor Bruce Rauner has let the income-tax rate lapse to 3.75% from 5% and the corporate rate to 7.75% from 9.5%, though Democrats are trying to push them back up.

Given how the tax hike backfired, let’s hope the Governor holds firm in this fight.

Now let’s return to some of the analysis in the Tax Foundation’s Index. Here’s some of the academic evidence on the importance of low tax burdens.

Helms concluded that a state’s ability to attract, retain, and encourage business activity is significantly affected by its pattern of taxation. Furthermore, tax increases significantly retard economic growth when the revenue is used to fund transfer payments. …Bartik (1989) provides strong evidence that taxes have a negative impact on business startups. He finds specifically that property taxes, because they are paid regardless of profit, have the strongest negative effect on business. Bartik’s econometric model also predicts tax elasticities of –0.1 to –0.5 that imply a 10 percent cut in tax rates will increase business activity by 1 to 5 percent. …Agostini and Tulayasathien (2001)…determined that for “foreign investors, the corporate tax rate is the most relevant tax in their investment decision.” …Mark, McGuire, and Papke (2000) found that taxes are a statistically significant factor in private-sector job growth. Specifically, they found that personal property taxes and sales taxes have economically large negative effects on the annual growth of private employment. …the consensus among recent literature is that state and local taxes negatively affect employment levels. Harden and Hoyt conclude that the corporate income tax has the most significant negative impact on the rate of growth in employment. Gupta and Hofmann (2003)…model covered 14 years of data and determined that firms tend to locate property in states where they are subject to lower income tax burdens.

The message is that all the major revenue sources – income, sales, and property – can have negative effects.

Which explains, of course, why it’s important to control state government spending.

And one final point to make is that we should do everything possible to shrink the size of the central government in Washington and transfer activities to the private sector or states. This isn’t because states don’t make mistakes, but rather because competition between states will produce far better results than a one-size-fits-all approach from Washington.

P.S. A study from German economists finds that decentralization limits economically harmful redistribution outlays.

P.P.S. And a study from the IMF reveals that decentralized government is more competent and efficient.

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This century has not been good news for economic liberty in the United States.

According to Economic Freedom of the World, America has dropped from being the 3rd-freest economy of the world in 2001 to the 12th-freest economy in the most recent rankings.

Perhaps more important, our aggregate score has fallen from 8.20 to 7.81 over the same period.

So why has the U.S. score dropped? Was it Bush’s spending binge? Obama’s stimulus boondoggle? All the spending and taxes in Obamacare? The fiscal cliff tax hike?

I certainly think all those policies were mistaken, but if you dig into the annual data, America’s score on “size of government” only fell from 7.1 to 7.0 between 2001 and 2012.

Which means economic freedom in the United States mostly declined for reasons other than fiscal policy. In other words, our score dropped because of what happened to our scores for trade policy, monetary policy, regulatory policy, and property rights and rule of law.

That triggered my curiosity. If America is #12 in the overall rankings, how would we rank if fiscal policy was removed from the equation?

Here are the results, showing the top 25 jurisdictions based on the four non-fiscal policy factors. As you can see, the United States drops from #12 to #24, which means we trail 14 European nations in these important measures of economic freedom.

If you look in the second column, you’ll notice how many of those European nations have double-digit increases when you look at their non-fiscal rankings compared to their overall rankings.

This is for two reasons.

First, their fiscal scores are terrible because of high tax rates and a stifling burden of government spending.

Second, these same nations are hyper-free market on issues such as trade, regulation, money, rule of law and property rights.

In other words, the data back up points I’ve made about policy in nations such as Denmark and Sweden.

In an ideal world, countries should have free markets and small government. In Northern Europe, they manage to get the first part right. Which is important since non-fiscal factors account for 80 percent of a nation’s overall grade.

Now let’s return to the issue of America’s decline.

Here are the non-fiscal rankings from 2001. As you can see, the United States was #5 at the time, scoring higher than even Singapore and Hong Kong. And the U.S. was behind only three European nations back in 2001.

For what it’s worth, America’s score has fallen primarily because of a significant drop in the trade category (from 8.7 to 7.7) and a huge drop for rule of law and property rights (from 8.7 to 7.0).

In other words, it’s not good for prosperity when a nation begins to have problems such as protectionism and politicized courts.

P.S. The erosion of America’s score for non-fiscal factors is particularly disappointing since improvements in those factors have played a big role in protecting the world from the negative economic consequences of more spending and taxes.

P.P.S. I think this is an example of correlation rather than causation, but the above rankings for non-fiscal economic liberty seem somewhat similar to the rankings I shared last week looking at overall societal freedom.

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I’m a huge fan of the Fraser Institute’s Economic Freedom of the World.

I always share the annual rankings when they’re released and I routinely cite EFW measures when writing about individual countries.

But even a wonky economist like me realizes that there is more to life than economic liberty. So I was very excited to see that Ian Vásquez of the Cato Institute and Tanja Porčnik of the Visio Institute have put together The Human Freedom Index.

Here’s their description of the Index and some of the key findings.

The Human Freedom Index… presents a broad measure of human freedom, understood as the absence of coercive constraint. It uses 76 distinct indicators of personal and economic freedom… The HFI covers 152 countries for 2012, the most recent year for which sufficient data is available. …The United States is ranked in 20th place. Other countries rank as follows: Germany (12), Chile (18), Japan (28), France (33), Singapore (43), South Africa (70), India (75), Brazil (82), Russia (111), China (132), Nigeria (139), Saudi Arabia (141), Venezuela (144), Zimbabwe (149), and Iran (152).

Hong Kong and Switzerland are the top jurisdictions.

Here’s the Freedom Index‘s top 20, including scores on both personal freedom and economic freedom.

The United States barely cracks the top 20. We rank #12 for economic freedom but only #31 for personal freedom.

It’s worth noting that overall freedom is strongly correlated with prosperity.

Countries in the top quartile of freedom enjoy a significantly higher per capita income ($30,006) than those in other quartiles; the per capita income in the least-free quartile is $2,615. The HFI finds a strong correlation between human freedom and democracy. Hong Kong is an outlier in this regard. The findings in the HFI suggest that freedom plays an important role in human well-being

And here are some notes on methodology.

The authors give equal weighting to both personal freedom and economic freedom.

One of the biggest challenges in constructing any index is the organization and weighting of the variables. Our guiding principle is that the structure should be simple and transparent. …The economic freedom index receives half the weight in the overall index, while safety and security and other personal freedoms that make up our personal freedom index receive the remaining weight.

Speaking of which, here are the top-20 nations based on personal freedom. You can also see how they scored for economic freedom and overall freedom.

To be succinct, Northern European nations dominate these rankings, with some Anglosphere jurisdictions also getting good scores.

It shouldn’t be a surprise to learn that nations with economic freedom also tend to have personal freedom, but there are interesting exceptions.

Consider Singapore, with ranks second for economic freedom. That makes the country economically dynamic, but Singapore only ranks #75 for personal freedom.

Another anomaly is Slovenia, which is in the top 20 for personal freedom, but has a dismal ranking of #105 for economic freedom.

By the way, the only two nations in the top 10 for both economic freedom and personal freedom are Switzerland and Finland.

I’ve already explained why Switzerland is one of the world’s best (and most rational) nations. Given Finland’s high ranking, I may have to augment the nice things I write about that country, even though I’m sure it’s too cold for my reptilian temperature preferences.

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There’s an old saying that states are the laboratories of democracy. But since I’m a policy wonk, I focus more on the lessons we can learn from the states about public policy.

Such as the importance of limiting the destructive nature of taxes.

Such as the economic benefits of not having an income tax.

Such as the horrible consequences of adopting an income tax.

Such as the negative effects of excessive compensation of bureaucrats.

Such as better job creation in states with less government.

But it’s always good to have more data and evidence.

So I was very interested to see that the Mercatus Center at George Mason University has a new report that ranks states based on their fiscal solvency.

Here are some of the details.

Budgetary balance is only one aspect of a state’s fiscal health, indicating that revenues are sufficient to cover a desired level of spending. But a balanced budget by itself does not mean the state is in a strong fiscal position. State spending may be large relative to the economy and thus be a drain on resources. …How can states establish healthier fiscal foundations? And how can states guard against economic shocks or identify long-term fiscal risks? Before taking policy or budgetary action, it is important to identify where states may have fiscal weaknesses. One approach to help states evaluate their ongoing fiscal performance is to use basic financial indicators that measure short- and long-run fiscal position.

Here are some of the findings.

The five dimensions (or indexes) of solvency in this study—cash, budget, long-run, service-level, and trust fund—are…combined into one overall ranking of state fiscal condition. …States with large long-term debts, large unfunded pension liabilities, and structural budgetary imbalances continue to hover near the bottom of the rankings. These states are Illinois, New Jersey, Massachusetts, Connecticut, and New York. Just as they did last year, states that depend on natural resources for revenues and that have low levels of debt and spending place at the top of the rankings. The top five states are Alaska, North Dakota, South Dakota, Nebraska, and Florida.

And here’s a map so you can see the rankings of each state. Dark green is good and yellow is bad.

I’m shocked and amazed to see California, Illinois, and New York near the bottom of the list.

Here’s the same information, but in a table so you can see the specific scores for each state.

So what should we learn from these rankings?

According to an editorial from Investor’s Business Daily, there are some very obvious lessons.

What do the most fiscally sound states have in common? Good weather? Oil? Blind luck? Or is it conservative policies such as keeping taxes low, regulations reasonable and spending under control? …There’s only one factor these fiscal winners and losers share in common. And that’s their political leanings. …if you look at the 25 best-performing states, only three could be considered reliably liberal. …There’s only one factor these fiscal winners and losers share in common. And that’s their political leanings. Of the top 10 states in the Mercatus ranking, just two — Florida and Ohio — voted for the Democratic presidential candidate in the past four elections, and just one — Montana — has a Democratic governor. Even if you look at the 25 best-performing states, only three could be considered reliably liberal.

Now let’s shift from policy lessons to political implications. There are several governors and former governors running for President.

Based on the Mercatus ranking, can we draw any conclusions about whether these candidates are in favor of taxpayers? Or do they support big government instead?

We’ll start with the current governors.

Kasich – Ohio ranks surprisingly high on the list, particularly given the Ohio governor’s expansion of Obamacare in the state. Maybe the state’s #7 ranking is due to fiscal restraint by his predecessors.

Christie – New Jersey ranks low on the list, and this isn’t a surprise. The relevant question is whether Christie can argue, based on some of the fights he’s had, that the state legislature is an insurmountable impediment to pro-growth reforms.

Jindal – The governor of Louisiana has proposed some big reforms, but the state’s #35 ranking doesn’t give him any bragging rights on fiscal policy (though the state is leading the way on education reform).

Walker – Thanks to his high-profile fight with unionized bureaucrats, Walker has a very strong reputation. But his state doesn’t rank very high, and he can’t blame the legislature because it’s GOP-controlled as well. But perhaps the low ranking is a legacy of the state’s historically left-wing orientation.

What about former governors?

Well, there’s probably not much we can say because we don’t have long-run data. There was a similar Mercatus study last year, but that obviously doesn’t help with the analysis of governors that left office years ago.

Nonetheless, here are a few observations.

Bush – I’m very suspicious of politicians who express an openness to tax hikes, and Bush is in that group. But he did govern Florida for a couple of terms and never flirted with imposing an income tax. And former governors, particularly from recent history, presumably can take some credit for Florida’s relatively high ranking.

Pataki – Since New York is one of the worst states, Pataki has guilt by implication. But he did lower a few taxes during his tenure, and you also have the same issue that exists with Christie, which is whether a governor should be blamed when the state legislature is hostile to good policy.

Perry – It’s hard to argue with the success Texas has enjoyed in recent years, and Perry (like Bush) never even hinted at the imposition of a state income tax. Though the #19 ranking shows that there are issues that should have been addressed during Perry’s several terms in office.

Huckabee – There aren’t many conclusions to draw about Arkansas and Huckabee. He’s been out of office for a while and the state is in the middle of the pack.

The bottom line is that the Mercatus study is very helpful in identifying well-governed (and not-so-well-governed) states, but the newness of the project means we can’t make any sweeping statements about governors because of limited data.

Fortunately, the Cato Institute for years has been publishing a Report Card that grades governors based on fiscal policy. So fans (or opponents) of different candidates can peruse past issues to see the degree to which governors pushed policy in the right or wrong direction.

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