Freedom in the 50 States Evaluated by Cato Institute

The 2016 report on Freedom in the 50 States by the Cato Institute evaluating the state of freedom through 2014 is now available.  The results of their evaluation of freedom based on fiscal policy, personal freedom, and regulatory policy are summarized in this map:

Cato provides the weightings they used for the evaluation of freedom and one can change those weightings to one's personal preferences to see how the rankings change.  But by Cato's weightings, the top ten freest states are ranked and graded as, with the party of the governor, the senate, and the house of the state added in order either as a D or an R in the year 2014:

1) New Hampshire, 0.3319, D, R, D
2) Alaska, 0.3265, R, R, R
3) Oklahoma, 0.2791, R, R, R
4) Indiana, 0.2778, R, R, R
5) South Dakota, 0.2754, R, R, R
6) Tennessee, 0.2646, R, R, R
7) Idaho, 0.2608, R, R, R
8) Florida, 0.2133, R, R, R
9) Iowa, 0.2048, R, D, R
10) Arizona, 0.1834, R, R, R

The 10 most authoritarian states with their negative scores are:

50) New York, -0.9763, D, D, D
49) California, -0.5026, D, D, D
48) Hawaii, -0.4904, D, D, D
47) New Jersey, -0.4285, R, D, D
46) Maryland, -0.4039, D, D, D
45) Connecticut, -0.2612, D, D, D
44) Illinois, -0.2554, D, D, D
43) Rhode Island, -0.1735, I (really D), D, D
42) Maine, -0.1500, R, D, D
41) Kentucky, -0.1489, D, R, D

It is interesting that the five most authoritarian states, New York, California, Hawaii, New Jersey, and Maryland are all more greatly deviant from the norm of freedom than is the freest of the states, New Hampshire.  If you value your freedom, it is particularly important to avoid these most negatively rated states.  New York is about three times more negative than New Hampshire is positive.  In fact, New York is almost twice as bad as either of the next two worst states, California and Hawaii.

If one were to move from New York to New Hampshire, the freedom score would increase by 1.3082.  Or if I were to move from authoritarian Maryland to where much of my family lives in Oklahoma, my score would improve by 0.6830, which is a substantial increase in freedom.  Or if you live in the Washington, DC area, living in Virginia offers a big improvement over living in Maryland by 0.5080.  If you have to live near New York City, Connecticut is substantially more free than is either New York or New Jersey.

Of the 10 most free states, all are controlled by Republicans, except two which had divided government in 2014.  Of the 10 most authoritarian governments, all were entirely controlled by Democrats in the governorship and the legislature, except the two least repressive of that set of the 10 worst, who had one of the three legs of the state government in the hands of Republicans.  It is not uncommon for libertarians to claim that the Republicans are every bit as anti-freedom as the Democrats, but these rankings make it clear that the Republicans are significantly better than the Democrats in most cases.  Indeed, one of the main reasons that the mean state freedom rankings are so much better than those of the most repressive states is because far more states are controlled by Republicans than are controlled by the more adamant deniers of individual rights found in the Democrat Party.

Skin Color Identifications and the Washington Redskins

A federal judge has ruled that the Washington Redskins cannot be allowed trademark protections for the name Redskins because that name is offensive to some native Americans of ancient stock and apparently to many Socialist Elitists.  This ruling was not impeded by the fact that one of the states of the union, Oklahoma, has a name meaning Home of the Red People, which was given to it by native Americans.

It is somewhat offensive by means of the omission of far more essential and important characteristics whenever anyone is identified by the color of their skin.  Despite this, federal government forms, forms for government contractors, many forms for sub-contractors of government contractors, and many forms of local governments all require that individuals be identified as black, Hispanic, white, Asian, or some other descriptors of groups indicating ethnic ancestry.  The black and the white descriptors are clearly both based on some crude approximation of skin color, just as redskins is.  On these federal forms, Reds are allowed to check a box with the somewhat more dignified identifier of Native American.  Asians are not forced to check a box that says Slanty-Eyed or Yellows.

It is not any of the government's business what my skin color is.  No law and no government action should ever be conditioned on the color of anyone's skin or on their ancestry.  There should be a complete separation of state and skin color.

What is more, I am not white.  I am too healthy to be white and I am not a ghost.  So stop offending me by calling me white.  If you cannot think of any way to describe me but as white, then have the common decency to say nothing at all about me.  That would be a proper admission that you were either not interested in me or you knew nothing about me.  It is your right to know nothing about me and it is your right to be uninterested in me.  I am fine with that.  But do not call me names implying I am an insubstantial ghost.

Now, back to the Washington Redskins.  I am fine with this judge's ruling provided it is based on a general principle that government will not identify any individual by their skin color or some general approximation to it.  Unfortunately, our governments and the Socialist Elitists who mostly control them do not recognize moral and political principles in most cases.  They do not feel compelled to act consistently upon a rational and coherent moral and political code of principles.  This case on the trademark protections of the Washington Redskins name is a case in point.  Until and unless the government treats this issue as a general moral and political matter of principle, I will continue calling the Washington Redskins, the Washington Redskins and Oklahoma, Oklahoma.

Employment Growth or Contraction By State Since December 2007

It is very interesting that if one plots the number of jobs created in Texas since 2008 against the change in the number of jobs in all other states combined, one gets an astounding story of job creation in one state that does little to prevent the creation of jobs:

There is no contest.  Texas added jobs without ever dropping below the number of jobs in December 2007 despite the Great Recession.  It has now added 1.44 million jobs, while the remainder of the nation has yet to recover all the jobs lost since December 2007!

[The oil and gas industry in Texas, which Obama has fought and tried to suppress, is responsible for a large part of the Texas jobs creation success.]  

But some of those other states did add jobs and some lost a particularly large fraction of the jobs they had in December 2007.  Let us see which states are relative winners and which are relative losers.  I will use BLS seasonally adjusted Establishment Data on non-farm payrolls which excludes public administration.  I am going to break the states into three groups.  The first group is the one that created more jobs over the 7 year period than would be needed to keep up with the average population growth of the country over the 10-year period of the last census.  That population growth rate was about 0.9%, so 7 x 0.9% = 6.3%.  The next group of states managed some kind of job growth, though as we will see that job growth was most commonly pathetic.  The final group of states are those which still have fewer jobs now than they had in December 2007.  I have simply taken the non-farm non-public administration jobs in December 2014 and divided by the number of such jobs in December 2007.  Thus, North Dakota had 32.24% more such jobs in 2014 than in 2007.

The heroic states with more created jobs than average population growth from Dec 2007 to Dec 2014:

North Dakota, Texas, and Oklahoma certainly benefited from both business-friendly state governments and the shale oil boom.  Alaska benefited from high oil prices.  Obama did nothing but hurt the jobs creation in these states.  The District of Columbia benefited from the inexorable growth of the federal government and the many well-paid lobbyists located there.  Gov. Rick Parry of Texas has some real bragging rights in his bid for the Republican presidential nomination due to the record of Texas during his long term as governor.  Of the five states and DC which created jobs in excess of population growth, only those jobs in DC were created by Obama and his socialist cronies.

The states that could not keep up with population growth, but at least did not actually lose jobs:

Massachusetts, New York, and California on this list certainly benefited from the huge out-pouring of Federal Reserve money propping up the largest financial institutions largely located in these states.  Note that the bottom 12 states in this group did not even manage a 1% growth of jobs in 7 years!  Both Virginia and Maryland, despite being benefited by the growth of the federal government by their proximity to DC, managed virtually zero private job growth at 0.6% and 0.15%, respectively.  Six of the bottom 9 states in this group voted for Obama twice, so they deserved no better.  Scott Walker, Republican governor of Wisconsin has little to brag about in terms of job creation in his state in his presidential bid.  Democrat Gov. Martin O'Malley of Maryland has still less to brag about.

Finally, we have the states that actually lost such jobs in the 7-year period of the Great Recession and its supposed recovery:

Of these 17 job losing states, 11 of them voted for Obama twice.  That is certainly a fair indicator of an anti-business mentality in those states.  Only Idaho, Florida, Arizona, and Nevada on this list appear in many lists of business-friendly states.  Republican Gov. Chris Christie of New Jersey has only a 3.06% job loss in seven years to talk about.

It is very clear that the federal government and very many of the state and local governments need very badly to become more business-friendly if Americans are ever going to be able to enjoy plentiful and good jobs again.  This does not mean doing things to favor businesses.  It just means they need to get out of the way and let free Americans in the private sector create jobs and provide great products and services.

School Choice Programs Produce Better Education Results than More Dollars

Vicki E. Alger of the Independent Institute has a very interesting, article on the lack of correlation of spending with educational results and the scramble to seek more tax money for education.  She points out that school choice programs seem to be a more important factor in improving the education of children in the school lunch program.  Because the most interesting results in her article are buried deep into it, I will quote them here:

Based on public-school results from the 2011 National Assessment of Educational Progress (NAEP), the average nationwide reading and math performance among low-income eighth grade students was pitiful, with a 48% proficiency rate in both subjects.

The big spenders paid more for worse results. In Nebraska, which spent nearly $8,000 per student, a mere 39% of disadvantaged eighth-graders scored proficient or better in reading and math. For the approximately $7,000 a year Illinois spent on instruction, its low-income eighth-graders did no better than the national averages in reading and math.

States that spent less per pupil tended to have better educational outcomes. More than 45% of low-income students in Idaho—with its relatively puny $4,100 per pupil spending—tested proficient in reading and math. Low-income students in stingy Arizona, which spent $4,200 per pupil on instruction, had 51% proficiency rates in both subjects. And students in penny-pinching Oklahoma, which spent around $4,300 per pupil, achieved a 53% proficiency rate in reading and 52% in math.

 One of the most striking differences between these two sets of states is the availability of parental-choice programs. Unlike Nebraska or Illinois, both higher-scoring Arizona and Oklahoma have parental-choice scholarship programs that enable parents of disadvantaged students to choose the schools they think are best, including private schools. Schools have to compete for students, which forces them to improve their performance.

Congratulations are due to my home state of Oklahoma!  To be sure, it is one of many of my home states, but it is the one where I graduated from high school in a two-year period between moving there and leaving the state for college.  Nonetheless, I have considerable family there.

Nonetheless, I am sure that the educational bar for proficiency is much too low and that in general it is likely to be too generously assessed.  Even so, the results are clearly terrible.  Government-run schools are a disgrace for the most part.  Even when they are good at the basics, they tend to be awful Big Government indoctrination centers.

A Clearly Rational Federal Court Decision Against the IRS Rule to Offer Subsidies on Federal ObamaCare Exchanges

Among the cases challenging the IRS rule that subsidies for individuals and tax penalties for non-complying individuals and companies would be administered in all fifty states and the District of Columbia, is the case brought by Scott Pruitt, the Attorney General of the state of Oklahoma.  Oklahoma and 35 other states did not choose to establish PPACA or ObamaCare exchanges, as the PPACA law tried to get them to do by taxing every American, but only allowing individual subsidies in those states establishing an ObamaCare exchange.  Non-complying states were to be penalized with taxes and the loss of any partial return of that tax money in the form of subsidies.  That this was the intent was very clear to those who followed the progress of the PPACA legislation through Congress.

Of course, it was also very clear that PPACA was a revenue bill which violated the constitutional requirement that it originate in the House of Representatives.  It is further clear that the only justification for the collectivist claim that the collective gets to dictate how every American maintains his or her body's and mind's health is based on a claim of collectivist ownership of everyone's mind and body.  This is a very clear and certain violation of the American Principle of a very limited government dedicated only to the protection of the equal, sovereign right of each and every individual to life, liberty, and the pursuit of happiness.  I for one am exceedingly furious that the government considers me its slave by depriving me of self-ownership and the right to pursue my own happiness.

United States District Judge Ronald A. White of the Eastern District of Oklahoma ruled on 30 September 2014 that "the IRS Rule is arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law, pursuant to 5 U.S.C. [paragraph] 706(2)(A), in excess of statutory jurisdiction, authority, or limitations, or short of statutory right, pursuant to 5 U.S.C. [paragraph] 706(2)(C), or otherwise is an invalid implementation of the ACA, and is hereby vacated."

Judge Ronald A. White provided a very rational decision, which is very much appreciated in light of the three judge panel in King v. Burwell who decided that they would not help the plaintiff destroy the PPACA by ruling in accordance with the language of the law.  No, instead they decided on the basis of how they claimed Congress intended the law to work while not considering the actual history even of constraints on Congress in forcing the states to comply with handing control over health care insurance to the federal government.  Neither did they consider the actual discussions and trades within Congress needed to acquire even sufficient Democrat votes to pass the bill.  Similarly, the dissenting judge on the three judge panel that vacated the ObamaCare subsidies and tax penalties in Halbig v. Burwell for the District of Columbia Court of Appeals exercised a similar flight of fancy in interpreting the PPACA.

The Honorable Ronald A. White read the bill as written and said that if Congress had intended the bill to operate otherwise, it would have written the bill differently.  What is more, if Congress decides that the application of the law as written is not what it wants, then Congress can readily pass legislation to change the law.  This is exactly the way a rational person would expect laws to be applied.  Neither the IRS nor the federal courts are the legislative body and neither has the constitutional power to enact or to change laws.  How the 3-judge panel of the 4th Circuit Court that decided the King v. Burwell case could have decided that the law was ambiguous is incredible.  What is more, if it were ambiguous, then it is up to Congress, not the IRS, to eliminate any such ambiguity.  Ridiculous consequences would result from any other principle and the People would lose all power to control any government operating as the 4th Circuit Court ruled government should work.

Unfortunately, the entire District of Columbia Circuit Court decided to rule on Halbig v. Burwell and the Democrat appointed judges are now in the majority on that Circuit Court.  They will hear the case in December.  What is more, the decision by the Honorable Ronald A. White will be appealed to the entire 10th Circuit Court on which 7 of the 12 judges were appointed by Democrats.  The case of Indiana v. IRS is also yet to be decided.  Given the otherworldly ability of Democrat-appointed judges to misinterpret clear English and to ignore the history of the passage of this law, the People of the United States may not be relieved of the ObamaCare tyranny.

But, the state of Oklahoma, Governor Mary Fallin of Oklahoma, Attorney General Scott Pruitt of Oklahoma, and the Honorable Ronald A. White of the United States District Court for the Eastern District of Oklahoma have all proved themselves Heroes for in their efforts to preserve the rights of the individual in this desperate fight to protect self-ownership against the brutal onslaught of ObamaCare.

Revised State Real GDP Changes in 2013

According to the U.S. Bureau of Economic Analysis, the percentage change of real GDP in 2013 was:

Now recall that real GDP is under-corrected for inflation due to the government insistence in leaving such volatile, but clearly more rapidly increasing cost, items such as food and energy are not included in the cost of living index.  Then also recall that one should really be looking at real per capita GDP since that tells us whether our standard of living is actually increasing.  If the GDP increases by less than the rate of growth of the population, then our standard of living actually falls.  The average US population growth rate was 0.9% from 2001 to 2010, so real GDP increases of 0.9% provides a stagnant standard of living.

New York state which is running ads nationally claiming to be the second best job creator state in the nation clearly underperformed in 2013 with a state GDP that grew by a mere 0.7%.  The state of Maryland, whose Governor O'Malley believes himself ready to run for the presidency, had a 0.0% growth rate.  Yes, preventing the growth of one's own state's GDP now qualifies a politician well for the Democrat Party nomination for the presidency!

Most of the high growth states in the US are in the center of the nation.  The Dakotas, the Rocky Mountain states, Nebraska, Oklahoma, Texas, and West Virginia are the heroic states for those who wish to earn a living.

The 2011 State Business Tax Climate Index from the Tax Foundation

Kail M. Padgitt, of the Tax Foundation produced the 2011 State Business Tax Climate Index in October.  The report evaluates the effects of state taxes of the following types with the relative weighting following as a percentage:

• Individual Income Tax, 29.64%
• Sales Tax, 25.16%
• Corporate Tax, 19.35%
• Property Tax, 14.57%
• Unemployment Tax, 11.28%

The results of the evaluation are shown in the map below by rank:

In the scoring, the average was set at 5.00 on a scale of 10.00.  I have made up two tables giving the score of each state assigned by the Tax Foundation Study and its rank for 2011 and the rank for 2010.  To this I have added my calculated growth in the state's Gross State Product from 2005 to 2008.  I have also indicated the party in control of the governor's office, the State House, and the State Senate in 2010.

The highest ranked three states, South Dakota, Alaska, and Wyoming, stand out from the other states with their high scores.  The second set of three states, Nevada, Florida, and Montana, also enjoys some significant separation from the other states.  Then New Hampshire and Delaware stand out a bit also.  Beyond that, very small differences in state scores can mean changes of several rank positions, until you get to the bottom 7 positions beginning with Maryland.

Do high taxes discourage the growth of the state Gross State Product (GSP)?  The top 10 ranked states grew by an average of 17.59% from 2005 to 2008, while the bottom ten states grew by 13.36%.  Low taxes provided a 4.23% growth rate advantage to the low tax states in that three year period.  Let us do the math to find the effect this difference in growth would have over 5 three year periods:  1.1759 to the fifth power is 2.248, while 1.1336 to the fifth power is 1.8720.  The difference is that the low tax state economies become 2.25 times larger, while the high tax economies become 1.87 times larger.  Such growth differences matter to the quality of the People's lives.

Let us examine if there is any difference in tax ranking that correlates with the party holding power in the states.  Of course, the 2010 powers that be were not likely to have instantly changed many state taxation traditions, so the duration of control by a given party is also important.  But to keep things simple, we will just consider the party in power in 2010.  Besides, according to Judge Napolitano on Fox Business on Sunday, there is only one party, the Big Government Party, so we should find equality in this tabulation if he is right.  For the top 10 states in the business tax ranking, counting 1 for each case of control of a governorship, house, or senate, the Republicans score 17 and the Democrats score 11.   For the bottom 10 states, those with the worst business taxes, the score is Republicans 6, Democrats 24.  Sorry Judge Napolitano, but on the matter of the business tax climate, it appears that it matters quite a bit which party controls a state.

Of course, there are exceptions.  For instance, Arizona was controlled in all three state government components by Republicans and yet it was in the 34th position and had actually fallen from the 28th position in 2010.  Bad Republicans in Arizona!  I will also chide Oklahoma, where much of my family lives and where I graduated from high school.  Oklahoma has generally been a Republican state for a couple of decades now, but it ranked only 30th among the states.  With Texas (13), Colorado (15), and Missouri (16) on its borders, it is surely losing many businesses to those nearby states with much higher rankings.  In rankings that consider the regulatory environment as well, Oklahoma does better in the ranking, but still there is a clear need for improvement here.

Speaking of the border effect, the state of Maryland is pursuing an insane high tax strategy as well.  It is ranked 44, but Delaware (8), Virginia (12), and Pennsylvania (26), and even West Virginia (37) are all on its borders and offer better business tax climates.  This is why Northrop Grumman, with large operations in Maryland, just moved its headquarters to Virginia which just improved its ranking by three positions.  Virginia was chosen as the #2 best state for business by CNBC, who picked Texas #1.  Virginia's governor says Virginia is coming after Texas and will take over the #1 spot.  Maryland is not in the race and couldn't give a fig.  Maryland's expertise is in suckling at the teats of the federal pig and living off the taxpayers from across the entire country.

Looking at the map above, it is very noticeable that New Hampshire, Delaware, Virginia, Florida, Texas, and Indiana are each states that have much better business tax climates than any of the states on their borders.  They are each sucking in businesses from the nearby states and helping their homegrown businesses to succeed in the most effective manner: by not putting burdens on them with high taxes.  States using limited time tax incentives or offering training to the employees of industries the state has picked as winners are not as effective in growing businesses and jobs as those who leave all this to the private sector.  Dell Computer had a four-year special tax break from the state of North Carolina for a facility, for instance, and has now announced that it is leaving the state when the four years are up.  This is not surprising.  North Carolina is ranked #41, so it makes sense for Dell to go back to Texas at a #13 ranking or maybe move that facility to Florida with its #5 ranking.

Economic Freedom and the Presidential Election

The Pacific Research Institute in association with Forbes produced the U.S. Economic Freedom Index, 2008 Report by Lawrence J. McQuillan, Michael T. Maloney, Eric Daniels, and Brent M. Eastwood and I have been intending to discuss it for some time. Then I thought that it might be interesting to correlate it with the results of the presidential election, which can now be done.

The report says, "Economic freedom is the right of individuals to pursue their interests through voluntary exchange of private property under a rule of law. This freedom forms the foundation of market economies. Subject to a minimal level of government to provide safety and a stable legal foundation, legislative or judicial acts that inhibit this right reduce economic freedom."

They set up 35 indices including such factors as tax rates, state spending, occupational licensing, environmental regulations, income redistribution, right-to-work and prevailing-wage laws, tort reform, and many others. They then assumed that people want to be free, so they search out locations, governments, and situations where freedom reigns. So they made migration their metric for deciding which index among the 35 they had set up as possible good indicators of economic freedom they would use to rank the states for economic freedom.

The formula for the Index is: Index = (0.2313 x Fiscal Score) + (0.2159 x Regulatory Score) + (0.1894 x Judicial Score) + (0.1208 x Government Score) + (0.2426 x Welfare-Spending Score)

The net migration score for the 20 freest states was 27.36 people per thousand. For the 20 most economically oppressed states the net migration score was 1.17 per thousand. For every one place improvement in state rank, a state's net migration per 1,000 people typically increased about one person.

The results of this economic freedom study are given below with the presidential popular vote result for each state, as State, Economic Freedom Score, 2008 Rank, 2004 Rank, 1999 Rank, McCain Vote %, Obama Vote %.

South Dakota, 14.54, 1, 15, 5, 53%, 45%
Idaho, 14.81, 2, 4, 1, 61%, 36%
Colorado, 14.91, 2, 14, 45%, 53%
Utah, 15.16, 4, 5, 3, 63%, 34%
Wyoming, 15.39, 5, 9, 4, 65%, 33%
Nevada, 15.70, 6, 12, 20, 43%, 55%
Oklahoma, 16.74, 7, 6, 18, 66%, 34%
New Hampshire, 17.07, 8, 7, 6, 45%, 55%
Virginia, 17.07, 9, 3, 2, 47%, 52%
Kansas, 18.06, 10, 1, 10, 57%, 41%
Georgia, 18.22, 11, 19, 12, 53%, 46%
North Dakota, 18.56, 12, 18, 21, 53%, 45%
Montana, 18.56, 13, 21, 26, 50%, 47%
Arkansas, 18.82, 14, 23, 15, 59%, 39%
Missouri, 18.90, 15, 10, 13, 50%, 49%
Alabama, 19.03, 16, 25, 11, 61%, 39%
South Carolina, 19.08, 17, 13, 16, 54%, 45%
Wisconsin, 19.15, 18, 38, 37, 43%, 56%
Mississippi, 19.28, 19, 28, 9, 57%, 43%
Delaware, 19.61, 20, 8, 7, 37%, 62%
Arizona, 19.78, 21, 11, 25, 54%, 45%
Iowa, 19.88, 22, 16, 24, 45%, 54%
Indiana, 19.92, 23, 14, 22, 49%, 50%
Hawaii, 19.92, 24, 35, 39, 27%, 72%
Nebraska, 19.93, 25, 20, 23, 57%, 41%
Minnesota, 20.92, 26, 44, 43, 44%, 54%
Illinois, 21.16, 27, 46, 36, 37%, 62%
Florida, 21.16, 28, 22, 30, 49%, 51%
Tennessee, 21.18, 29, 26, 19, 57%, 42%
Oregon, 21.24, 30, 29, 41, 42%, 56%
Texas, 21.32, 31, 17, 8, 55%, 44%
Lousiana, 21.36, 32, 40, 31, 59%, 40%
Massachussetts, 21.72, 33, 41, 47, 36%, 62%
Maryland, 21.73, 34, 27, 35, 38%, 61%
Maine, 21.81, 35, 30, 42, 41%, 58%
North Carolina, 21.87, 36, 24, 17, 49%, 50%
Washington, 21.92, 37, 31, 40, 41%, 58%
West Virginia, 22.55, 38, 32, 32, 56%, 43%
Connecticut, 22.66, 39, 48, 46, 39%, 60%
Kentucky, 22.71, 40, 39, 29, 58%, 41%
New Mexico, 22.82, 41, 37, 28, 42%, 57%
Vermont, 22.87, 42, 36, 34, 32%, 67%
Michigan, 23.08, 43, 34, 27, 41%, 57%
Ohio, 23.34, 44, 43, 33, 47%, 51%
Alaska, 23.38, 45, 33, 38, 62%, 36%
Pennsylvania, 23.88, 46, 45, 45, 44%, 55%
California, 23.89, 47, 49, 44, 37%, 61%
New Jersey, 23.94, 48, 42, 48, 42%, 57%
Rhode Island, 24.18, 49, 47, 49, 35%, 63%
New York, 27.39, 50, 50, 50, 37%, 62%

Of the top 25 freest states by economic freedom ranking, McCain won 16 of the states. In the most oppressed 25 states, he won only 6 states. The voters who consistently pursue restrictions upon our individual economic freedoms, were fairly consistent in choosing the socialist Obama. Of the six states that gave McCain 61% or more of the vote, five were ranked in the top 16 by economic freedom index and four were ranked in the top 7 by economic freedom. The other state was Alaska, whose people think of themselves as being self-reliant and independent, but who are massively on welfare. It will be interesting to see if those states voting for Obama tumble in future economic freedom rankings.

The states of Idaho, Utah, Wyoming, New Hampshire, and Virginia have consistently had top ten rankings in all of the three evaluations in 1999, 2004, and 2008. Until this election, all of these states had voted Republican in the last several presidential elections. Now that New Hampshire and Virginia have defected to the socialist candidate, I expect to see them fall out of the top 10. Indeed, they are barely hanging in there now, both having lost position steadily since 1999. There are other states whose economic freedom ranking has steadily fallen also: Ohio, Michigan, Vermont, New Mexico, Kentucky, North Carolina, Texas, Tennessee, and Delaware, where I have ordered them from most oppressive to least oppressive. Of the 11 falling states, 8 are already ranked 29 or worse.

There are a few steadily improving states as well. These are Nevada, North Dakota, Montana, and Hawaii. Then there is one state which has been remarkably consistent: New York. It has ranked dead last as the most oppressive state of all in each of the last three evaluations. Most of us will realize that this means it is ranked #50, but for Mr. Obama's sake, I will point out that the last rank is not 57. 57 is the number of Heinz varities, Mr. Obama.

South Dakota at number 1 has no corporate income tax, no personal income tax, no personal property tax, no business inventory tax, and no inheritance tax. Companies are moving into the state. In 2007, the Small Business Survival Foundation ranked South Dakota the best business climate for entrepreneurs. Forbes magazine says Sioux Falls is the best smaller metro area for business and careers. The Milken Institute says it has a low cost of doing business.

The freest states are in the Great Plains and the Rocky Mountain states, while the most oppressed are in the Northeast. South Dakota, North Dakota, Minnesota, Wisconsin, and Illinois have all made major improvements in economic freedom in the Upper Midwest. But, Indiana has fallen somewhat and Michigan and Ohio are both very bad and falling. The fact that Indiana and Ohio have fallen may say a lot about why they voted for Obama and these states may be hard for the Republicans to win in the future given their poor attitude toward economic freedom.

The states with the biggest drops were Texas, Alaska, Delaware, North Carolina, and Arizona. Again, these rapid drops may be a harbinger of future defections to the socialist Democrats of Texas and Arizona and the continued loss of North Carolina.

Among those states having values which have given rise to more economic freedom, the Republicans should find states it will be particularly beneficial to try to swing into the Republican column before the next election. Among these states are Colorado, Nevada, New Hampshire, Virginia, Wisconsin, Delaware, Iowa, Indiana, Minnesota, Illinois, and Florida. OK, maybe Illinois will have to wait until they do not have a socialist Native Son in the presidency. A determined and consistent effort in these states might well provide a big payoff in the next election or two. Meanwhile, the Republicans should make a strong effort to improve the economic liberty of Texas and Arizona, so they will not lose them in the future. They should do the same in North Carolina in an effort to recover it.