2014 Election Observations

The day after election day, the sun rose in the sky, as it always does. I didn't see it, as it was overcast and rainy in my area.

As I watched the election returns from around the country, I thought about citizens from around the world who live in countries which have never seen a peaceful transfer of power. While our nation's elections certainly can't be described as “peaceful,” at least our nation's usual transfers of power have not been accompanied by gunfire and deaths.

As with most elections, I like to say “I voted for a bunch of losers... Some of which won.”

I guess it's my way of saying that no candidate is perfect. I'm not perfect. My friends and family aren't perfect. In fact, the only ones I know who are “perfect” are the “church ladies,” if only in their own minds. And, I love them for it.

For me, this year's election results were mixed. I was very pleased that most of Minnesota's voters didn't punish our state's success by voting out the Democrats responsible for it. Unfortunately, some in Minnesota, and many in other states weren't so enlightened.

I was very pleased that all of Minnesota's top officers were reelected, despite the fact that Governor Mark Dayton had pushed through “a record $2.1 billion tax hike," at a time when seemingly all Republicans were calling for more tax cuts (for the wealthy) to get our economy moving. Oh, I forgot, Governor Dayton's tax hikes were targeted toward the wealthy. The top 1% of earners will pay most of the new taxes, the middle class was left unscathed. While Republicans like to call such hikes “punishing success,” Governor Dayton didn't see it that way.

During this election cycle, I did hear one or two Republicans repeat the phrase they've used for as long as I can remember "He raised our taxes." The fact is, most Minnesotans did not see a tax hike. The very wealthy did. And, the wealthy are still doing just fine.

Governor Dayton's predecessor, Tim Pawlenty, had carefully groomed himself for a Presidential bid. He cut taxes (for the wealthy). He cut spending on damn near everything, including Minnesota's schools (although the cuts were sometimes called “slowing the rate of growth” of spending). Every year was full of drama, as Governor Pawlenty cut spending (and programs) to balance the budget, rather than raising taxes. Sometimes, “creative accounting” methods had to be used. These included delaying payments, and “borrowing” (stealing) funds designated for schools.

In contrast, Governor Dayton promptly “spent” the money raised by the new taxes. Some was used to balance the state's budget, without the need to cut valuable programs (and without the drama of previous years). The rest was used to repay the money “borrowed” (stolen) from the state's school districts, and to invest in Minnesota's future. In addition to investing in some public-private development projects, Minnesota invested in K-12 education, including state funded all-day kindergarten. The state also invested in higher education, to help ensure Minnesota's future success.

By contrast, Governor Scott Walker of Wisconsin took the opposite tact. Like former Minnesota Governor Tim Pawlenty, Governor Walker aspires to be President. He has chosen to cut state programs, rather than even considering raising taxes. He added another nail to the coffin for Wisconsin's middle class by abolishing Civil Service collective bargaining rights for most of Wisconsin's (middle class) public employees. He cut state funding for K-12 education by more than 15% . While Minnesota embraced “Obamacare,” and expanded its Medicaid coverage, Governor Walker rejected both ideas. Minnesota had some of the lowest premiums in the nation for insurance policies purchased on its state exchange, Wisconsin's premiums were much higher.

Minnesota's already low uninsured rate improved under Governor Dayton, and Minnesota is, once again, investing in its future.

Wisconsin's economic growth has lagged Minnesota's economic growth.

While two, four, or even ten years, may not be enough time to properly evaluate the long term consequences of the “invest” versus the “cut” strategies of Minnesota and Wisconsin (or the strategies of our nation's other states), I like Minnesota's prospects much more than I do those of Wisconsin.

Minnesota and Wisconsin have elected two very different Governors. I know that a policy of cuts, as championed by former Presidential hopeful, Governor Tim Pawlenty, was not beneficial for Minnesota. But, perhaps, Governor Walker can make it work in Wisconsin.

I doubt it. But, it is an interesting experiment to test an unproven economic theory. And, no matter what the outcome, I'm confident Governor Walker will declare it to be a success during his Presidential campaign.

I prefer to see my state, and our nation, move forward.

Successful businesses are constantly investing in their futures. Businesses which are constantly “cutting” may see some temporary “success,” but typically they're in a fatal downward spiral.

I believe that the same holds true for our states, and our nation. Minnesota is growing. Wisconsin's downward spiral has yet to be stemmed.

Time will tell.