Limited Government Policies Lead to Economic Growth

By John Hendrickson

State Representatives and their clerks watch Iowa House 2017 Opening Day remarks.

Iowa expanded its Republican majority in the House and flipped the Senate.
Photo credit: Jacob Hall

Policymakers at both the state and federal level will be confronted with a number of crucial issues, especially concerning the economy. The economy, lackluster economic growth, and jobs were some of the central issues in the 2016 election. Many Americans, especially those in the middle-class, believe they are being left behind as they struggle amidst economic uncertainty. The victory of Republican Donald Trump in the presidential election and the numerous Republican victories at the state level demonstrate that voters support a change in economic policy. This means that limited-government policies such as tax, spending, and regulatory reform will be advancing across the nation.

Economist Stephen Moore, writing in The Washington Times, discussed an interesting fact about the characteristics of some of the states that supported Hillary Clinton: “Of the ten blue states that Hillary Clinton won by the largest percentage margins — California, Massachusetts, Vermont, Hawaii, Maryland, New York, Illinois, Rhode Island, New Jersey, and Connecticut — every single one of them lost domestic migration (excluding immigration) over the last ten years (2004-14). Nearly 2.75 million more Americans left California and New York than entered these states.”

The reason for the population loss in these blue states is the liberal economic policies that have dominated them. These blue states, as Moore argues, all have high rates of taxation and regulation, generous welfare benefits, and “environmental extremism.” “The whole left-wing playbook is on display in the Hillary [blue] states . . . So much for liberalism creating a worker’s paradise,” argued Moore. Whether on the federal or state level, the liberal/progressive economic policies of high taxation, more spending, and excessive regulation have had poor economic results.

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