Now That You're Unemployed, How 'Bout Becoming an Ewok Chief?
The first installment of 2010 U.S. Census data--released on Tuesday--contained
better news for Republicans than Democrats, with population changes
translating into more House seats for red states like Texas and fewer
seats for blue states like Massachusetts. But what do the numbers tell us about the state
and direction of our economy?
A number of economists ... are worried about the lack of inflation and income growth in the United States. Fewer workers could drive up salaries. What's more, fewer new Americans might help slow government spending. That may curtail the rising US federal debt, which many think will soon cause interest rates to jump and hold down US GDP growth.
Growth tends to be stronger where taxes are lower. Seven of the nine states that do not levy an income tax grew faster than the national average. The other two, South Dakota and New Hampshire, had the fastest growth in their regions, the Midwest and New England.
Altogether, 35 percent of the nation's total population growth occurred in these nine non-taxing states, which accounted for just 19 percent of total population at the beginning of the decade.
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Uri Friedman
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