Don't Mess with Texas

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Krugman messes with Texas. Now that the budget battles have moved to the states, he shows how Texas, which has become the bell weather state for America, has dealt with its budget crisis. Krugman argues that the spending cuts, forced on the state because of its decision to keep taxes, especially for the rich, very low, will be harmful to the states future. Texas is being short-sighted. I would make a more general point. Its decision to cut Medicaid by over 20%, which is funded partly by state taxes, will be followed by many other southern states. In fact, one of the reasons that healthcare reform was resisted by those arguing for "states rights" was because the bill extended Medicaid coverage to more low-income workers. In the south that meant to minorities, and it has been one of the reasons why Tea Partiers, who claim not to be racist, have been against healthcare reform.

The data on taxes and educational achievement that Krugman provided for Texas are typical of those in the south. Taxes in the south are low and they are generally regressive. Sales taxes are a major source of state revenue and the tax incidence falls heavily on those with low incomes since they spend most of their earnings. The best way to maintain this arrangement is to keep the population dumb and happy. The underfunded education system cooperates in two ways. Conservative legislatures are deeply involved in curriculum and the schools provide one of the major sources of entertainment with good football teams and pretty cheerleaders. The news media and the mega churches are part of the same system. It would be unfortunate for America, and for the world, if the south continues to provide the direction in which this country is heading.