Here are two charts for you to look at. the first is the unemployment rates for Wisconsin for the last several years, the second is Minnesota. You will notice that no matter how good or bad the economy was overall, Minnesota could almost always boast an approximately one point lower unemployment rate.
Here’s the wager. In the coming year, the taxes are likely to go up in Minnesota, while the taxes will go down in Wisconsin. I will bet that if this trend continues, with Wisconsin reducing taxes and Minnesota raising taxes, the unemployment situation will be reversed, with Wisconsin having a lower rate, and being able to maintain that lower rate, within two years.
Taxes take money out of the economy, and even when governments claim to spend on the economy, they keep some of the money, and spend some of it on projects not helpful to the economy. This money lost to the economy fosters an environment which is likely to increase unemployment.
What will these charts look like two or three years from now? Will my prediction come to pass?
Care to make a wager?