Great news for the residents of Michigan! The solution to what ails us has been discovered! What pray tell might it be? Tax hikes. Yes, it’s true. Turns out that Michigan has been a tax-cutting haven for the past 2 decades and that’s the reason our economy has stagnated.

Don’t believe me? Perhaps you’ll believe this new study out that says exactly that – http://www.masb.org/drake-report.aspx. It’s a leftist financed report designed to trump up support for more big government as our salvation. It certainly convinced this reporter who seems to wholeheartedly endorse its findings – http://www.mlive.com/lansing-news/index.ssf/2014/05/rick_haglund_are_you_happy_mic.html#incart_2box.

I could spend time going through the report and refuting its findings point-by-point but I have to tell you the weather is absolutely stellar outside today so that just seems like a waste of precious time.

As always, we can easily discount these ideological commercials dressed up as research quite easily. Ask yourself, what makes an economy grow? Is it higher taxes and more infrastructure spending? Would that spending result in reversing Michigan’s drop in per capita income from 18th to 35th as the report states?

Of course not. It is the expansion of wealth and productivity that results in economic growth. No sane economist would ever equate redistributing income through higher taxes as the way to grow an individual’s per capita income.

Does a quality infrastructure and education system affect an area’s economy? Absolutely. Is throwing more money at it the solution? Absolutely not. There are far too many extenuating circumstances involved here beyond the scope of a blog post to attempt to break down all of the factors involved. The key here is efficiency, not quantity.

A little research will show that Michigan hasn’t suffered from a lack of comparative investment in social engineering. Academia has profited quite handsomely in Michigan over the years. Michigan teachers rank 2nd in the nation in salary with the cost of living factored in.

The roads? A disaster. Michigan requires much more for transportation infrastructure compared to a southern state without the freeze/thaw cycles and road salting and plowing expenses. However, Michigan also allows higher commercial weight limits that lead to premature destruction of the road surfaces. Does the trucking industry benefit more by higher weight limits than the penalty incurred by poorer quality road surfaces?

Let history be your guide. The European example has shown that a system heavily weighted toward redistributive practices which require high levels of government efficiency in order to expand growth fail. The American economic engine has proven that enabling the private sector rather than the public sector results in far greater wealth creation. Period.

People may not agree with the status of societal issues with reduced public spending, but the facts are clear with regard to economic growth. The left will continue to try to sell the concept that government redistribution is preferable to private investment. Not if you want results. Unfortunately, the communist plank of equality of outcome has been a tried and true failure and just doesn’t sell on main street.

Need more proof? Take a look at the hotbed of socialist type policies and witness its rejection – http://www.ft.com/cms/s/0/fd3975ce-e424-11e3-8565-00144feabdc0.html#axzz32m4I61Vp. Turns out that confiscatory tax policy followed by austerity after the system crashes isn’t so popular.

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