In December New Jersey had a 9.1% unemployment rate. In May the last month reported it was 9.4%. A 3 tenths of a percent increase. Rhode Island a near by state with an Independent Governor was at 11.5 in December and in May was at 10.9%. Delaware another state near New Jersey had a December rate of 8.5 and in May it was down to 8%. Delaware has a Democratic Governor. The next state to look at is Pennsylvania. It had a Democratic Governor till January and then went Republican. It has gone from 8.5% to 7.4% one of the best records around. Finally for this batch we come to New York. In December it had an unemployment rate of 8.2. It is now 7.9%. Again the Governor is a Democrat. This seems to indicate tat the Governor doing the worse on jobs is Chris Christi of New Jersey.

Another tea party state group are Wisconsin and Michigan. Michigan is somewhat of a special case as are Ohio and Indiana to lesser extent as they are all major recipients of major federal auto stimulus. Wisconsin has gone from 7.5% to 7.4% over the period. Illinois with a Democratic Governor has gone from 9.2% to 8.9%. Michigan which went Republican in January and received the most auto stimulus went from 11.1 to 10.3%. Minnesota which went from Republican to Democrat in January went from 6.9% to 6.6%. Ohio went from 9.5% to 8.6%. Finally Indiana an Republican state went from 9.5% to 8.2%. Republicans will say that this indicates that Republican Governors are doing well. I think it shows that President Obama successfully restarted the Mid-Western economy with the GM bailout.

Republicans often call California, Oregon, and Washington the Left Coast California was hit hard by the recession it unemployment rate in January was 12.5% now it is down to 11.7%. California went Democrat in January. Oregon has gone from 10.6% to 9.3%. Washington goes from 9.3% to 9.1%. Looking to the east Florida another coastal state 12% to 10.6%. That implies sun belt state were hit harder and are bouncing back.

California may give us an interest example of just how much sales tax holds back sales. As of July 1 the sales tax rate goes down 1%. I think that will heat up the economy. This is a tax cut that primarily benefits consumers and low income people. If it does what I expect it will be a good example of the harm the “fair tax” would do.

Wisconsin, Michigan, New Jersey, Michigan, Ohio, and Indiana among others have set up major lay offs of teachers and other government employees. I expect this will result in higher unemployment in all these states. This growth in unemployment will be larger then could be justified by the government employees laid off as many people in private support jobs will also be laid off. This will be a particularly hard drag on the Middle-West economy.

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