Pro-Business? Research Shows GOP “PRO-BUSINESS” Policies HURT Business, KILLED Economic Growth

[Segami]

We hear it all the time, republicans are “Pro-business.” They promise if they’re elected, they’ll pass “business friendly” legislation. They claim that their policies will lead to economic growth and job creation. It’s time for a reality check. An analysis of all 50 states clearly shows the negative correlation between the GOP’s ‘pro-business’ policies and job creation and economic growth. In fact, the study shows that the more ALEC backed ‘pro-business’ legislation a state has in place, the worse that state performs, economically. Two separate studies confirm that the higher a state ranks on the GOP ‘business friendly’ policy charts, the worse it performs economically. University of Wisconsin Professor Menzie Chinn compared the ALEC-Laffer Economic Competitive Index to actual economic growth. For those not familiar with the ALEC index, it rates states based on ‘pro-business’ policies as identified by the American Legislative Exchange Council. As you might guess, anti-union, “right to work” states, states with the lowest taxes on businesses, states with the fewest regulations and environmental policies etc… rank the highest on their index. According to ALEC, the states at the top of the ‘pro-business’ list have the best economic outlook.


The results of Chinn’s analysis, however, showed that the higher a state scored on the ALEC-Laffer ‘pro-business’ index, the lower the state performed, in terms of real economic growth and job creation. Chinn’s comparison helps to confirm that right wing ‘pro-business’ not only don’t help business, they hurt it. Chinn’s study looked at the most current economic data, 2011 – 2013, a period when right wing state politicians like Michgan’s Rick Snyder and Wisconsin’s Scott Walker began shoving the ALEC agenda down the throats of their constituents.


And then there’s this study, released by the Iowa Policy Project (IPP). Using economic data from 2007 to 2012, the IPP study shows that the lower a state scores on the ALEC-Laffer index, the better it performs economically. Again, the study showed that the states that ALEC ranked as ‘less competitive’ outperformed the states ALEC ranked as ‘most competitive’. States that did not pass ALEC backed legislation performed better in terms of job growth, per capita income growth, and median family income growth, as well. Also of note, the states that ranked highest on the ALEC-Laffer index also ranked higher in terms of poverty. States that enforced ALEC policies saw poverty rates increase and median family income decrease. But wait, how can that be? Low wages, low taxes, fewer regulations, fewer worker’s rights and protections, fewer evil environmental policies… what’s going on here? Shouldn’t businesses be flocking to take advantage of the GOP’s corporate free for all? Doesn’t every business owner dream of operating in the kind of environment that allows for the outright exploitation of everything, from people to public property?

Apparently not.

The myth that low wages create jobs was decimated in July, when economic data showed that the 13 states that raised minimum wage are creating jobs at a considerably faster pace than the 37 states that refused to raise minimum wage. Average job growth in states that raised the minimum wage was 0.85 percent between January 2014 and June 2014. Average job growth in states that didn’t raise minimum wage was just 0.61 percent. So much for the lie that higher wages leads to job loss… Republicans have changed the name of their failed policies more times than we can count. Whether you call it trickle down economics, supply side economics, Reaganomics, “pro-business” or “business friendly” economics, the results of the policies are always the same. A few get richer, most get poorer. Businesses suffer from lack of customers, job growth becomes job loss and everyone loses.





cont'


http://www.addictinginfo.org/2014/08/11/pro-business-research-shows-gop-pro-business-policies-hurt-business-kill-economic-growth/

[Bandit]

1. Duhhhh

Almost every person on this forum has known this to be true for the last forty years. Clinton's years in Office proved this beyond any doubt, but the myth continues on in Republican LA LA Land.

[Segami]

2. "...Republicans have changed the name of their failed policies more times..

...than we can count. Whether you call it trickle down economics, supply side economics, Reaganomics, “pro-business” or “business friendly” economics, the results of the policies are always the same. A few get richer, most get poorer. Businesses suffer from lack of customers, job growth becomes job loss and everyone loses.

Is it really such a surprise to learn that businesses fair better in stable and healthy communities, the kind that are clean and safe, where students are educated and citizens earn a living wage? Is it a surprise to discover that communities that offer public services, like reliable transportation, police protection, trash pick-up and even a 24 hour fire department are more attractive to businesses, than those who offer big tax discounts?

[arcane1]

3. To them, "business" means multinationals, but they sell it like mom & pop stores.

It's amazing that the scam still works on anyone.

[Populist_Prole]

4. Key point: Excellent analysis

This makes them still able to sell the notion of "what's good for xyz company is good for you" to non-critical thinkers who focus mostly on their pet wedge issues. In this way, "jobs" are presented in an abstract. They never think through the evidence that shitty jobs replacing what were once good jobs was the result of decades of supply-siders getting their way.

[arcane1]

5. Exactly. In that paradgim, Walmart is a family-owned business just like Pop's Hardware

And most people who haven't been interested in economics will think the two are equivalent.

And, of course, the Walton family's obscene personal wealth makes them "job-creators" because Pop's income is the same as Pop's Hardware's income.

[Populist_Prole]

6. And they'll enthusiastically point out

What a HUGE employer Walmart is. A huge employer of barely getting by, underclass, citizens.

[arcane1]

7. The size of the CEO's wallet is more important than the size of the paychecks, apparently.

[ffr]

8. R's don't care. They think so long as they can get political favors they'll continue doing it.

Republis are simple minded individuals who can only see in black and white. There's no grey area for them at all. I know. I see this first hand. They donate to Republi politicians and demand as much as they possibly can that their employees tow the Republi line, despite the fact they've suffer when Republis are in office and benefit when Democrats are in office.

About the only thing keeping them in line is the 24/7 brainwashing they hear on RWNJ radio and TV.

[calimary]

9. Kicking and bookmarking for later.

Can't say I'm even a teensy bit surprised.

[Initech]

10. I really wonder how some of these companies..

Can afford to pay their CEOs 475 times what the average worker makes while maintaining to claim a profit. I would think these ridiculous salaries would hurt companies more than they would help them.

[justabob]

12. same here

That has always been my question, especially when those oh so important shareholders are mentioned. I'd bet most, if not all, shareholders would slash ceo and executive pay if they could. Conveniently, shareholders don't have any say at most companies. Its all such a sick joke.

[Spitfire of ATJ]

11. Proof is the way everyone is flocking into Ala-damn-bama for the jobs.