• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • The Real Two Americas

    The Wall Street Journal has a great editorial today comparing the economic policies and fortunes of Ohio and Texas. Ohio currently ranks 47th out of 50 in economic competitiveness according to the American Legislative Exchange Council. It is a “closed shop” state, which means workers can be forced to join a union whether they wish to or not. They have the third highest corporate tax rate and sixth highest income tax. As a result Ohio has lost 200,000 manufacturing jobs since 2000 and their 2007 unemployment rate was 6%.

    By contrast Texas has no income tax. It is a “right to work” which means it has laws that make union organizing more difficult. When GM announced plans for a new plant to build hybrid cars they chose Texas. Texas has gained 36,000 manufacturing jobs since 2004 and their 2007 unemployment rate was 4.5%

    So John Edwards was right after all: there are two Americas … just not the two he thought there were. On the one hand, are states like Ohio that suffer under high taxes and cumbersome work rules that make capital investments and entrepreneurship difficult. On the other hand, you have stats like Texas that keep taxes low, unions week, and regulation to an absolute minimum. To stay competitive in the 21st century, America is going to have to emulate Texas at the federal level if it does not want to bleed jobs like Ohio.

    Posted in Economics [slideshow_deploy]

    Comments are closed.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×