Blue State Meltdown?

First, please read this excellent analysis from John Rubino of  You might follow that up with his useful investment advice related to the same subject:  here.

Rubino’s point:  The mostly likely (and significant) victim of the Tea Party victory this fall is the failing socialist agenda in their not-so-secret Blue State lairs.  The short list, of course, includes:  California, Illinois, New York, although we might include New Jersey, Massachusetts, Rhode Island, Wisconsin, and many others.   Here’s a good interactive guide from Forbes.

To be sure, leftward leaning politics isn’t the sole criteria, but it’s a darned good one for measuring the likelihood of imprudent political behavior and, thus, of eventual failure. 

Many have suggested that the conservative Tea Party agenda will be facing an uphill battle in the new year, bringing as it will the supposed “politics of no” to the forefront.  We’ve seen early glimpses of this in the recent lame-duck treatment of the “Bush Tax Cut” extension debate.

The Democrats, predictably, are trying to link Republican reluctance to extend unemployment benefits and their insistence on preserving tax cuts for the highest income earners as uncaring and cruel treatment of the working poor at the behest of the greedy capitalist class.

Of course, they care not a whit whether or not their policies actually work or are sustainable in any way.  Surprisingly, some have been rather forthcoming of late, stating that, in regards to progressive taxation, “they don’t care if it hurts the economy, it’s simply a matter of fairness”.

Which, of course, completely and utterly ignores the plight of the working poor in this country who will always disproportionately share the pain of any economic downturn.

And that, of course, is the crux of the problem in the Blue State quagmire.  Having run the fullest course of “compassionate”, “redistributive”, “social engineering”, these states are now about to realize what happens when you actually run out of other people’s money.

The Tea Party victory, you’ll note, rather diminishes their chances of a federal-level bailout.  They might well be on their own, as they should.  As we’ve had reason to wonder, of late, why should Germany subsidize ridiculous behavior in Greece?  Here, the citizens of Wyoming (and others), having been prudent and productive, have no reason whatsoever to support California foolishness.

You simply don’t keep giving drugs to an addict and expect them to change.  We do get in the habit of pacifying children (errr, greasing squeaky wheels), but those habits only encourage more bad behavior.

It’s true, the Tea Party faithful will attract a lot of heat in the liberal press this coming year, but it won’t be nearly as deadly as the sort of attention and social unrest that will be fomenting in the Blue States.

Harry Tuttle


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