long term economic growth.

ALEC Right to Work (for Less) Battle in Missouri Heats Up

More disturbing news from the midwest.  Michigan, Wisconsin, Missouri?

First of all – let’s start with a recap of information from a report that was issued a few months ago – about the effect of implementing ALEC policies in your state. (my emphasis)

ALEC/Laffer claim that wage suppression policies (anti-union “right-to- work” laws and the lack of a state minimum wage law) lead to greater job creation and prosperity; in actuality, such laws reduce wages and benefits but have little to no effect on job growth (see Chapter 6).

These policies entail cutting or eliminating progressive taxes, suppressing wages, and cutting public services. The evidence and arguments cited to support the beneficial effects of these policies range from deeply flawed to nonexistent. In actuality, the book provides a recipe for economic inequality and declining incomes for most citizens and for depriving state and local governments of the revenue needed to maintain public infrastructure and education systems that are the underpinnings of long-term economic growth. ALEC’s policy prescriptions don’t work.
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The Doctor is Out to Lunch

ALEC’s Recommendations Wrong Prescription for State Prosperity

This year marks the fifth anniversary of Rich States, Poor States: The ALEC-Laffer State Economic Competitiveness Index. First published in 2007, this report written by Dr. Arthur Laffer and others and published by the American Legislative Exchange Council (ALEC) purports to be a guide to state policies that promote economic growth. It seems an opportune time to assess how well their measure of a state’s Economic Outlook in 2007 actually performed: Did it accurately predict the economic performance of states over the next several years?

If the states following the prescriptions of Laffer and company succeeded in generating more income for their residents than the states who failed to subscribe to their policies, they should have higher incomes and lower poverty rates. The opposite is the case. The more a state’s policies mirrored the ALEC low-tax, regressive taxation, limited government agenda, the lower the state’s per capita income and median family income throughout the period 2007-2010, and the higher the poverty rate. Not only that, but the better a state did on the ALEC Outlook Ranking, the worse it did in terms of the change in the poverty rate and the change in median family income from 2007 to 2010 — that is, poverty increased and family income decreased in the best ranking states.

To read the rest of this brilliant refutation of ALEC policy as conceived by Art Laffer–he of the “trickle down” theory–you are encouraged to click here