Wisconsin Was Never A Safe Blue State

“Wisconsin is proof that politicos have short memories. In 2004, Democratic presidential candidate John Kerry carried Wisconsin by just 0.4 percentage points — making it the closest state in the country. Four years earlier, it had been even closer — Democrat Al Gore won the Badger State by just 5,708 votes, or 0.2 points.

But Democrat Barack Obama really connected with Wisconsin voters, winning the state by 14 points in 2008 and 7 points in 2012. Going into 2016, that contributed to a sense that Wisconsin was a safe bet for Hillary Clinton — part of the mythical “blue wall.” It had, after all, voted Democratic in seven consecutive presidential elections by that point.”

“Conventional wisdom says that Clinton lost Wisconsin because she infamously did not visit the state at all during the final seven months of the 2016 campaign. But that’s probably not true; Clinton devoted a lot of effort to winning Pennsylvania and still lost there, for instance. Instead, Wisconsin probably got redder in 2016 for the same reason that Pennsylvania and other Midwestern states did: demographics. The one-time home of progressive stalwarts like Robert “Fighting Bob” La Follette and Victor Berger could not escape the modern reality that white people without a bachelor’s degree — who make up 59 percent of Wisconsin’s population age 25 and older — have become more and more Republican, especially in the Trump era.”

Study Says Foxconn Deal Cost Wisconsin $20 Billion in Lost Economic Growth

“In a recent paper on the issue, my Mercatus Center colleagues Matthew Mitchell and Michael Farren did the math and found that “the $3.6 billion in taxes needed to fund the subsidies will likely decrease Wisconsin’s long-run GDP by about $20 billion over the 15-year life of the handout. And this estimate doesn’t include the local utility infrastructure, and federal subsidies that total another $1.4 billion.” These numbers are harder to sell to taxpayers than the la-la land ones we hear about before every big subsidy deal.”

“A new paper in the Journal of Economic Perspectives by Cailin Slattery of Columbia University and Owen Zidar of Princeton University looks at state and local business tax incentives and finds yet again that narrow, firm-specific tax breaks aimed at attracting businesses and boosting employment aren’t the way to go. The study shows that larger, more profitable companies are more likely to get bigger handouts. The largest deals benefit the recipients, according to their research, but not the overall state economy.”

“This study is only one of many on the topic. They all find that these narrowly targeted subsidies don’t work as advertised and are typically counterproductive. Unfortunately, a slogan like “subsidized projects aren’t worth the money you pay for them” doesn’t make for a great sound bite at ribbon-cutting ceremonies.”