Washington looks to North Dakota for economic, energy blueprint

posted at 8:31 am on July 14, 2012 by Rob Bluey

North Dakota isn’t your typical destination for members of Congress on a July weekend. But that’s where you’ll find members of the House Oversight and Government Reform Committee on Saturday. They’re gathering for a hearing on job creation.

No state has done a better job of creating jobs than North Dakota. It has the nation’s lowest unemployment rate at 3 percent and leads all states with the fastest-growing household income in America over the past few years.

It’s no secret what’s happening in North Dakota. The economic success is the result of an oil boom in the Bakken Shale Formation. It has helped North Dakota surpass both California and Alaska to become the second-biggest oil-producing state.

Members of Congress spent Friday in Oklahoma reviewing burdensome and unnecessary regulations on energy production. They’re heading to North Dakota in hopes of finding a blueprint for America’s energy future. It’s a good place to explore.

The state’s success is attributable to sensible regulations, the often-maligned fracking process and drilling that’s taking place on private lands. The Heritage Foundation and Institute for Energy Research recently visited North Dakota to produce a short video that highlights how the oil boom has changed the lives of local residents and others who have flocked to the state for work.

Susan Gordon moved from California with her daughter to open the WildcatZ Grill in Tioga, ND. “We saw the opportunity for both of us to come here and make something of it,” she said. “Back in California the opportunity wouldn’t have been such.”

North Dakota was one of only 14 states (and the District of Columbia) to experience a rise in household income between 2005 and 2010, according to the most recent Census data. The overall U.S. average during that time declined 4.4 percent.

Energy production is working in other states as well. Colorado, West Virginia and Wyoming rounded out the top five. See chart below and complete ranking of all 50 states.

North Dakota’s success is why lawmakers are meeting at North Dakota State University in Fargo to hear directly from job creators. Witnesses include a handful of energy executives.

It’s also an opportunity to remind Americans that President Obama rejected the Keystone XL pipeline, which could have benefited North Dakota. According to the committee, Bakken oil is transported on rail and by truck, which are more expensive and less safe than a pipeline.

Rob Bluey directs the Center for Media and Public Policy, an investigative journalism operation at The Heritage Foundation. Follow him on Twitter: @RobertBluey


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God help North Dakota if they start excepting Federal money for some stupid thing over the gas drilling going on there. I can just see Obama convincing the state to accept some grant money or something.. then here comes the strings. If you can’t beat them, join them and take over.

JellyToast on July 14, 2012 at 8:37 AM

North Dakota is prosperous? Not so much once DC is done with them.
They must be stealing from California, Illinois, and New York.

Ufdaubet on July 14, 2012 at 8:44 AM

They don’t need to travel (at our expense, no doubt) to see what to do to be prosperous like North Dakota.

Whatever they are doing in Washington right now, do exactly the opposite.

turfmann on July 14, 2012 at 8:49 AM

They should have invited the community organizer to come along with them to see how jobs are created and energy is produced.

tommer74 on July 14, 2012 at 8:49 AM

Probably there to look at ways to stifle the growth and jobs. Maybe some new fracking regs will do the trick. Gotta find a tree frog that needs saving.

Kissmygrits on July 14, 2012 at 8:55 AM

OH no. Don’t invite our president. He is the kiss of death:

http://www.freerepublic.com/focus/f-news/2906451/posts

esr1951 on July 14, 2012 at 8:56 AM

I’m sure it’s not escaping anyone’s notice that Washington D.C. is growing the fastest in median household income. Too much government!

GeorgiaBuckeye on July 14, 2012 at 8:58 AM

Wow…DC leads the pack in household income increase? Since the district is nearly all black and all of those residents have seen unemployment and decreases in assets and income, how much has Obama’s Kleptocracy exploded to offset that number and lead to a 10% increase in income?

Jaibones on July 14, 2012 at 9:01 AM

If we could get the government’s boot off the throat of the domestic energy industry, we could have an economic boom like North Dakota’s in every state. The recent discoveries of massive natural gas and oil shale deposits in the U.S. could not only help heal our national economy, they could also move us much closer to energy independence — if only we could get the incompetent and obstructive Obama administration out of the way.

AZCoyote on July 14, 2012 at 9:02 AM

I’m sure it’s not escaping anyone’s notice that Washington D.C. is growing the fastest in median household income. Too much government!

GeorgiaBuckeye on July 14, 2012 at 8:58 AM

Boy, that jumps out like a sore thumb doesn’t it. It’s a story in itself – an infuriating one considering that increase, rather than coming from drilling for oil, comes from “fracking” the taxpayer.

Rod on July 14, 2012 at 9:05 AM

Boy, that jumps out like a sore thumb doesn’t it. It’s a story in itself – an infuriating one considering that increase, rather than coming from drilling for oil, comes from “fracking” the taxpayer.

Rod on July 14, 2012 at 9:05 AM

Not just fracking us, but Flukeing us as well!

My first thought was, “Why would anyone in D.C. want to know how success was achieved?”

TugboatPhil on July 14, 2012 at 9:11 AM

You gotta be freaking kidding me. Washington thinks that a state with a ~700K is a model for the US. Fools, morons, and idiots. While I believe that the ND’s are doing just fine managing thier state, the problem is REGULATION, REGULATION, REGULATION. How about this for an economic model for Government – Get the Heck out of the way and let business do what they do and make money, grow and hire people.

triumphus04 on July 14, 2012 at 9:13 AM

I’m sure it’s not escaping anyone’s notice that Washington D.C. is growing the fastest in median household income. Too much government!

GeorgiaBuckeye on July 14, 2012 at 8:58 AM

The number of 100k+ jobs in the federal government started a fast climb under Bush and has most definitely continued under Obama.

The average household makes about 50 k….

can you say out of touch?

Salaries for Federal workers have soared since President Obama took office in 2009, with the number of workers making $150,000 or more doubling, according to USA Today (via the Atlantic).

For feds, more get 6-figure salaries
By Dennis Cauchon, USA TODAY

December 11, 2009

The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted.

CW on July 14, 2012 at 9:14 AM

Less regulations from the feral government all the way down to local zoning and permitting.

forest on July 14, 2012 at 9:17 AM

“The nine most terrifying words in the English language are: I’m from the government and I’m here to help.”

- President Reagan Aug. 12, 1986

http://www.youtube.com/watch?v=xhYJS80MgYA

Thank you God for giving us the imperfect fearless Conservative.

Reagan would be smiling about North Dakota. :-)

PappyD61 on July 14, 2012 at 9:23 AM

As a native Texan living in Texas I’m always encouraged when another state is competitive and doing well.

Maybe NC gets to jump on board the gas boom train too…

“Texas has added 60% of the nation’s net new jobs among job-positive states, since May of 2007. Other ways to think of that number: Texas is where three out of every five new jobs have been created.

Texas has added more new jobs than all other states combined, with room to spare…”

http://www.willisms.com/archives/2012/07/visualizing_tex.html?utm_source=feedburner&utm_medium=feed&utm_ca

Of course Texans made decisions and legislated those to diversify our economy and encourage business growth, which has upgraded our credit rating and helped us weather the recession to emerge quicker from that recession.

Competitive states can learn from each other…Of course Texas has an outspoken governor, so I can see why Washington DC might be a bit shy about asking us how we done it. I’m sure Tort Reform,common sense regulation & a value for States Rights/local control v Over-reaching Federal intrusion could have sumthin’ to do with that too.

And while DC has added Guvmint jobs…Texas has decreased Guvmint jobs (Data at above link)

One size solutions do not fit all…but we can learn from each other.

Good Luck North Dakota!

Conservative Solutions Work.

workingclass artist on July 14, 2012 at 9:28 AM

…that increase, rather than coming from drilling for oil, comes from “fracking” the taxpayer. Rod on July 14, 2012 at 9:05 AM

So funny!

Akzed on July 14, 2012 at 9:28 AM

“Politicians aren’t what’s made this country great.”

That guy is obviously a hater, and extremist.

EPA shutdown in 5….4….3….

PappyD61 on July 14, 2012 at 9:29 AM

Rob, many computer companies what dead with servers are moving in to ND because of…. the cold. It is easier to regulate servers for companies when you don’t have to keep AC on them 24/7 and it keeps the costs down.

That is another reason why ND is having luck with the small unemployment.

upinak on July 14, 2012 at 9:30 AM

You gotta be freaking kidding me. Washington thinks that a state with a ~700K is a model for the US. Fools, morons, and idiots. While I believe that the ND’s are doing just fine managing thier state, the problem is REGULATION, REGULATION, REGULATION. How about this for an economic model for Government – Get the Heck out of the way and let business do what they do and make money, grow and hire people.

triumphus04 on July 14, 2012 at 9:13 AM

Where does a crazy idea like yours leave room for the President, whose job in part consists of telling an inspiring story to the American people, which they need to hear in order to instill within them a sense of unity and purpose and optimism in tough times?

Bizarro No. 1 on July 14, 2012 at 9:31 AM

Which is why John Hoeven should be Vice President.

joepub on July 14, 2012 at 9:33 AM

I’m shocked Obama is allowing any new exploration or mining of carbon-based fuels. When he finds a way, probably using the EPA, he’ll stop it. He’ll say stopping it is the “right thing to do”, and fracking for oil is “not who we are as a country”.

/screw Obama and the hybrid he road in on

Paul-Cincy on July 14, 2012 at 9:39 AM

good post. There’s something similar happening in S. Texas at the Eagle Ford Shale area. They are having big problems–but great problems–they can’t build houses/roads/support fast enough to take care of the influx of workers and their families. I hear they are going gangbusters down there.

http://www.eaglefordshale.com/

ted c on July 14, 2012 at 9:39 AM

from the link:

The Eagle Ford Shale (EFS) is quite possibly the largest single economic development in the history of the state of Texas. The play had more than a $25 billion dollar impact on the local South Texas economy in 2011.

The play is located in South Texas and produces from various depths between 4,000 and 14,000 feet. The EFS takes its name from the town of Eagle Ford Texas where the shale outcrops at the surface in clay form.

ted c on July 14, 2012 at 9:40 AM

ND is a right to work state
http://www.nrtw.org/rtws.htm

Hope they stay that way…economies of right to work states do better.

“Real GDP declined in 38 states in 2009, and overall GDP for all states declined by -2.14%.
Here’s a comparison of right-to-work states vs. forced unionism states for real economic growth rates in 2009:
Right-to-work states: -1.66%
Forced unionism states: -2.42%
All states: -2.14%
In other words, the decline in economic growth growth in forced unionism states (-2.42%) was 0.76% worse in 2009 than the decline in right-to-work states (-1.66%). Further, of the ten states that experienced positive growth in 2009, only two were forced unionism states (Alaska and W. Virginia) and eight were right-to-work states (Nebraska, N. Dakota, S. Dakota, Arkansas, Louisiana, Virginia, Oklahoma and Wyoming). The three top states with the highest growth in 2009 were all right-to-work states: Oklahoma (6.6%), Wyoming (5.4%) and North Dakota (3.9%).”

http://4.bp.blogspot.com/_otfwl2zc6Qc/TOgEJGbB6HI/AAAAAAAAOqQ/9UsdNrmW5nw/s1600/states.png

workingclass artist on July 14, 2012 at 9:42 AM

So, all Mississippi, Alabama, West Virginia Arkansas and Kentucky need to do is discover oil, or shale gas deposits and they’ll be rich!

All the best for North Dakota — I’ve told my son he should move out there for a couple of years — but it’s hardly a replicable economic development strategy. Also, note that resource-based development in places like Venezuela and Louisiana – has not necessarily broad broad-based prosperity.

urban elitist on July 14, 2012 at 9:42 AM

“North Dakota has an unemployment rate well below the national average? We need to fix that…”
–Obama

Liam on July 14, 2012 at 9:43 AM

I’m sure it’s not escaping anyone’s notice that Washington D.C. is growing the fastest in median household income. Too much government!

GeorgiaBuckeye on July 14, 2012 at 8:58 AM

Are you saying that Obama is effectively the CEO of a rapidly growing, greedy enterprise that doesn’t produce anything and makes money on the misery of others by charging exorbitant fees and taxes on their income??

Paul-Cincy on July 14, 2012 at 9:44 AM

Forgot to add a /snark to my last.

Liam on July 14, 2012 at 9:44 AM

Not to worry…Obama will sign a few executive orders…and the Californication of North Dakota will commence.

coldwarrior on July 14, 2012 at 9:45 AM

ted c on July 14, 2012 at 9:40 AM

http://www.oaoa.com/news/dip-90646-economy-permian.html

workingclass artist on July 14, 2012 at 9:55 AM

“North Dakota has an unemployment rate well below the national average? We need to fix that…”
–Obama

Liam on July 14, 2012 at 9:43 AM

Perfect.

98ZJUSMC on July 14, 2012 at 9:55 AM

Forgot to add a /snark to my last.

Liam on July 14, 2012 at 9:44 AM

Not necessary.

98ZJUSMC on July 14, 2012 at 9:56 AM

Boy, that jumps out like a sore thumb doesn’t it. It’s a story in itself – an infuriating one considering that increase, rather than coming from drilling for oil, comes from “fracking” the taxpayer.

Rod on July 14, 2012 at 9:05 AM

That is Funny!

Seriously, we are a long way from where we want to be. Assuming we want a Flat or Fair tax system and a removal of about 1/3 of Government, including the EPA, there needs to be path set forth for this goal to be achieved.

As an aside, notice how the EPA is not so much guarding the environment, but an governmental copy of Gores carbon credits exchange?

Bulletchaser on July 14, 2012 at 10:06 AM

All the best for North Dakota — I’ve told my son he should move out there for a couple of years — but it’s hardly a replicable economic development strategy. Also, note that resource-based development in places like Venezuela and Louisiana – has not necessarily broad broad-based prosperity.

urban elitist on July 14, 2012 at 9:42 AM

Agree that diversification should develop.

Texas began to diversify our economy with a competitive boost in micro electronics and technology, and legislating to grow business…boosting international trade was a priority of then Agriculture Commissioner Rick Perry which more than doubled from 1991-2001. Texas has been the #1 exporter for 9 years in a row.

After the dotcom bust Texas adjusted to boosting manufacturing which is a lot of what we export today.

http://texaspolitics.laits.utexas.edu/9_3_3.html

workingclass artist on July 14, 2012 at 10:11 AM

Probably there to look at ways to stifle the growth and jobs. Maybe some new fracking regs will do the trick. Gotta find a tree frog that needs saving.

Kissmygrits on July 14, 2012 at 8:55 AM

Why do these liberals assume every state in the Union should be just like either NY or CA ?

arrrrgh!

workingclass artist on July 14, 2012 at 10:17 AM

Why do these liberals assume every state in the Union should be just like either NY or CA?

arrrrgh!

workingclass artist on July 14, 2012 at 10:17 AM

Two words, one phrase – “control freaks”

Bizarro No. 1 on July 14, 2012 at 10:19 AM

workingclass artist on July 14, 2012 at 10:11 AM

I have a love/hate relationship with Texas. What I like is that they have diversified their economy (also, Austin, the Admiral Nimitz Museum in Fredricksburg and Hayes Carll).

What I don’t like is that they pretend that their low-tax business environment is based in fiscal virtue rather than the fact they were lucky enough to sit on an ocean of oil and that poor people in Texas have ludicrously bad eduction and health care (also, their faith-based, public education system).

I hope that ND will strike a balance. And get us some good music.

urban elitist on July 14, 2012 at 10:21 AM

workingclass artist on July 14, 2012 at 10:17 AM

Never been to CA or NY huh? Good, stay away from them.. it pollutes the mind.

upinak on July 14, 2012 at 10:22 AM

Also, note that resource-based development in places like Venezuela and Louisiana – has not necessarily broad broad-based prosperity.

urban elitist on July 14, 2012 at 9:42 AM

I think it has less to do with resource-based development than governments in place that can facilitate or confound the process. North Dakota seems to be in the resource-based development business and doing ok.

Venezuela is a country that has suffered at the hands of a dictator that has stiffled the promise of prosperity. Louisiana is constrained by edicts such as the one the Obama administration put on them after the BP spill.

Louisiana suffered from both Katrina and horrific Democrat administrations in the last decade which exaserbated the problem. Mississippi suffered the same disaster and is still listed in the top ten, an amazing feat in itself.

itsspideyman on July 14, 2012 at 10:23 AM

The northern portion of the Keystone pipeline, that would also run to ND, is not to be built by the Obama Administration. It must be a coincidence that Warren Buffett owns at last report 26% of the railroad that transports the oil in ND.

amr on July 14, 2012 at 10:25 AM

What I don’t like is that they pretend that their low-tax business environment is based in fiscal virtue rather than the fact they were lucky enough to sit on an ocean of oil and that poor people in Texas have ludicrously bad eduction and health care (also, their faith-based, public education system).

urban elitist on July 14, 2012 at 10:21 AM

wow, a little jealous?

And TX healthcare is the same as the rest of the country (since you are talking medicare/medicaid).

And talking about someone with horrible educations.. lets talk about inner city kids who can’t even spell, do simple math, or have any life skills other than how to rob a store.

So… does being a hypocrite fit into your standard of meme-ism?

upinak on July 14, 2012 at 10:25 AM

If we could get the government’s boot off the throat of the domestic energy industry, we could have an economic boom like North Dakota’s in every state. The recent discoveries of massive natural gas and oil shale deposits in the U.S. could not only help heal our national economy, they could also move us much closer to energy independence — if only we could get the incompetent and obstructive Obama administration out of the way.

AZCoyote on July 14, 2012 at 9:02 AM

I appreciate your gusto, but that is a bit of a stretch.

Kermit on July 14, 2012 at 10:28 AM

Plus ND has a great resource for old trucks.

Bmore on July 14, 2012 at 10:30 AM

I have a love/hate relationship with Texas. What I like is that they have diversified their economy (also, Austin, the Admiral Nimitz Museum in Fredricksburg and Hayes Carll).

What I don’t like is that they pretend that their low-tax business environment is based in fiscal virtue rather than the fact they were lucky enough to sit on an ocean of oil and that poor people in Texas have ludicrously bad eduction and health care (also, their faith-based, public education system).

I hope that ND will strike a balance. And get us some good music.

urban elitist on July 14, 2012 at 10:21 AM

You truly are clueless. California has the oil bonanza but fails to capitalize on it, AND their education is inferior to Texas’ BTW, California is truly rolling these days, rolling around the bowl and down the hole.

Kermit on July 14, 2012 at 10:31 AM

urban elitist on July 14, 2012 at 10:21 AM

Diversified?

Medicine – check
Computer and software industry (Hightech)- check
Areospance – Check
Private space – check
chemicals – check
Agriculture – check
Steel – check
Auto – check

Kermit on July 14, 2012 at 10:34 AM

The northern portion of the Keystone pipeline, that would also run to ND, is not to be built by the Obama Administration. It must be a coincidence that Warren Buffett owns at last report 26% of the railroad that transports the oil in ND.

amr on July 14, 2012 at 10:25 AM

YEP, amr, one of those dirty little secrets.

The oil is being moved anyway, but rail cars that are statistically 8 times more likely to contaminate the environment.

Not laying the pipleline has done NOTHING to stop the drilling or movement of oil. There are already 35,000 miles of pipeline that criss-cross Nebraska.

So who does not having a pipeline help? Burlington Northern, owned by …… Warren Buffett.

itsspideyman on July 14, 2012 at 10:35 AM

Kermit on July 14, 2012 at 10:31 AM

Well Kermit, when the people are bunny humping tree huggers who love silica more so than the energy that it takes to make the silica parts they so love, do you really think Cali is going to change?

The only hope for ND are for people like the urban idiot to stay away and not bring their social righteousness and lack of moral indignation and change the stage.

upinak on July 14, 2012 at 10:37 AM

‘Tis indeed odd, and terribly misleading, to include D.C. in that graph. We all know why they lead the pack – gubmint jobs, gubmint largesse, and the entire “Corpse”, er Corp of Federal workers, the numbers of whom have multiplied exponentially under Dear Leader. The gobsmackingly inept POTUS needs to hire legions to mask his multitude of shortcomings and that usually includes his equally incompetent Leftist pals.
D.C. and its ‘burbs are a cesspool of political cronyism.
BTW … Just what does D.C. produce besides toxic manure?

Meanwhile …
Just watch as King Barack the Growth-Slayer finds a way to screw over N. Dakota, just like he has done to Arizona, Texas, Oklahoma, W. Virginia, etc., etc. – Nauseating beyond the ability to remain hydrated.
BTW … when will Barry turn the water back on to CA’s Central Valley? Close to election day so that thousands of illegals can vote?
Just Curious
~(Ä)~

Karl Magnus on July 14, 2012 at 10:38 AM

itsspideyman on July 14, 2012 at 10:35 AM

Strawman argument. Then you have to make the argument that Obama’s decision on coal doesn’t hurt BNSF (Buffett) which hauls 40$ of it.

Don’t worry, there are changes going on the in the pipeline biz with existing pipelines.

However, Keystone XL could still be of good use.

Kermit on July 14, 2012 at 10:40 AM

upinak on July 14, 2012 at 10:37 AM

Silica? as in computer chips?

Computer industry left Cali in the lat 90′s for Korea, and has since moved to China.

BTW, very pure petrochemicals are required in computer and all “high tech” manufacturing. Most of the manufacturing techniques were originally from petrochemical company R&D of ways to use new products and this was back in the 50′s & 60′s.

Kermit on July 14, 2012 at 10:45 AM

Kermit on July 14, 2012 at 10:45 AM

I never said the silica (computer chips) were made there, I just mentioned they were addicted to it, and anything that is attached to them.

But don’t tell urban about how oil makes computers… it might make her head explode from all the thinking required.

upinak on July 14, 2012 at 10:49 AM

Any bets that new regulations will be created that will hose North Dakota?

sadatoni on July 14, 2012 at 10:53 AM

upinak on July 14, 2012 at 10:25 AM

Jealous — hey, don’t I wish that DC was sitting on a pool of black gold so I wouldn’t have to pay any taxes, either. But, it wouldn’t make me virtuous, it would make me lucky.

On health care:

More than a quarter of Texans lack health insurance, the highest rate in the nation, placing a crushing burden on hospitals and doctors who treat patients unable to pay.

Those costs are passed to the insured. Insurance premiums have risen more quickly in Texas than they have nationally over the last seven years. And when compared with incomes, insurance in Texas is less affordable than in every state but Mississippi, according to the nonprofit Commonwealth Fund.

That has taken a toll, as nearly a third of the state’s children did not receive an annual physical and a teeth cleaning in 2007, placing Texas 40th in a state ranking by the fund. Over the last decade, infant mortality rates have risen in Texas while declining nationwide, according to the Centers for Disease Control and Prevention.

Seniors, despite guaranteed Medicare coverage, also are suffering, as nearly 1 in 5 ends up back in the hospital within a month of being released, one of the highest readmission rates in the country and a leading indicator of systemwide problems.

And, if your best argument for a Texas education is that it’s no worse than inner city public schools, you’re making my case for me.

Kermit on July 14, 2012 at 10:34 AM

You truly are clueless. California has the oil bonanza but fails to capitalize on it, AND their education is inferior to Texas’ BTW, California is truly rolling these days, rolling around the bowl and down the hole.

Kermit on July 14, 2012 at 10:31 AM

California’s oil production for 50% more people. It is a mess, but both sides share equally, given their intransigence and rule-by-ballot-initiative approach. It’s worth noting that until Proposition whatever — the tax one — California’s public education system was widely regarded as the nation’s finest, on through the university system

I think I said diversified.

urban elitist on July 14, 2012 at 10:53 AM

Computer industry left Cali in the lat 90′s for Korea, and has since moved to China.

They’ll be surprised to hear that in San Jose.

urban elitist on July 14, 2012 at 10:55 AM

urban elitist on July 14, 2012 at 10:53 AM

LOL… you really are very, ignorant. You never mentioned the type of healthcare. And most people don’t have “healthcare” cause they do not want it. Why force people to have something they don’t want? Oh, that is right.. because you think that everyone should have it whether they want to or not.

And as for urban and suburban public schools… where do you live again? Or are you going to be a prude and pretend? Come on, say where you live (hell just give a state), and then we can talk.

And BTW, what does this have to do with ND and their oil?

upinak on July 14, 2012 at 10:59 AM

This, at first blush, would seem to be a good thing but I don’t trust The Won not to gather information and immediately formulate a way to cut ND off at the knees.

Cindy Munford on July 14, 2012 at 10:59 AM

They’ll be surprised to hear that in San Jose.

urban elitist on July 14, 2012 at 10:55 AM

Have you ever been to San Jose? Talk about a waste of urban sprawl.

upinak on July 14, 2012 at 11:00 AM

Boy, that jumps out like a sore thumb doesn’t it. It’s a story in itself – an infuriating one considering that increase, rather than coming from drilling for oil, comes from “fracking” the taxpayer.

Rod on July 14, 2012 at 9:05 AM

It’s even more significant when you consider that their populations are about equal. 601K for D.C. and 684K for ND.

Oldnuke on July 14, 2012 at 11:05 AM

urban elitist on July 14, 2012 at 10:55 AM

No they won’t I’ve been there to liquidate such plants. In ’98 there was not room for new manufacturing, by 2002 it was a “Ghost Town”

Kermit on July 14, 2012 at 11:09 AM

urban elitist on July 14, 2012 at 10:53 AM

How many had just moved to Texas and their healthcare plan was not portable from state to state?

How many have HSA’s and elect not to buy insurance?

How many have plenty of cash and do not need insurance?

Kermit on July 14, 2012 at 11:11 AM

blink on July 14, 2012 at 10:59 AM

Whenever the dumba$$ snowbirds who have live in Florida decide not to be luddites and drilling is back on in Eastern GoM, Mobile and Pennsacola are going to boom!

Kermit on July 14, 2012 at 11:12 AM

Kermit on July 14, 2012 at 11:11 AM

just wait till it talk about where is supposedly lives.

I am thinking east coast.. Mass probably, or NY, NH or RI.

upinak on July 14, 2012 at 11:14 AM

Speaking of really ignorant urban elitists, I have to leave now to drive to New Orleans.

Kermit on July 14, 2012 at 11:16 AM

urban elitist on July 14, 2012 at 10:21 AM

Texas schoolkids perform better than kids in all the other border states, including California.

CA and TX are good states to compare, because they are both large border states with similar demographics. Houston is now the most ethnically diverse big city in the nation.

TX children have better test scores than CA children by the most universal measure, NAEPS. TX also has a higher literacy rate than CA. But CA spends far more per kid on education. Where is the money going? To public employee pension funds, not to the children. That’s pretty dumb.

juliesa on July 14, 2012 at 11:16 AM

It’s worth noting that until Proposition whatever — the tax one — California’s public education system was widely regarded as the nation’s finest, on through the university system

I think I said diversified.

urban elitist on July 14, 2012 at 10:53 AM

CA spends more money per child than most states, but ranks well below other states that spend less. It’s HOW you spend the money. it’s being funneled to retired teachers who taught kids that are now grown. Todays kids are getting screwed by yesterday’s teachers.

Dumb.

juliesa on July 14, 2012 at 11:21 AM

The last paragraph of this story illustrates why Obama killed the Keystone. Who/what hauls the oil out of ND? Trucks driven by Teamster Union drivers and Burlington Northern trains owned by Obama’s BFF Warren Buffett.

Pay to Play-It IS The Chicago Way!

Nahanni on July 14, 2012 at 11:25 AM

What I don’t like is that they pretend that their low-tax business environment is based in fiscal virtue rather than the fact they were lucky enough to sit on an ocean of oil and that poor people in Texas have ludicrously bad eduction and health care (also, their faith-based, public education system).

I hope that ND will strike a balance. And get us some good music.

urban elitist on July 14, 2012 at 10:21 AM

Texans (White,Black and Hispanic) score higher than the national ave. K-8th and has a lower drop-out rate than the national ave. The scores data is 4th & 8th grade scores for Math,Reading and Science.

Rand study:
http://www.rand.org/pubs/issue_papers/IP202/index2.html

Iowahawk in his takedown of Krugman:

“Similarly, The Economist passes on what appears to be the cut-’n’-paste lefty factoid du jour:

Only 5 states do not have collective bargaining for educators and have deemed it illegal. Those states and their ranking on ACT/SAT scores are as follows:

South Carolina – 50th
North Carolina – 49th
Georgia – 48th
Texas – 47th
Virginia – 44th

If you are wondering, Wisconsin, with its collective bargaining for teachers, is ranked 2nd in the country…”

NAEP scores:
http://iowahawk.typepad.com/iowahawk/2011/03/longhorns-17-badgers-1.html

workingclass artist on July 14, 2012 at 11:26 AM

….and that poor people in Texas have ludicrously bad eduction and health care (also, their faith-based, public education system).

urban elitist on July 14, 2012 at 10:21 AM

Right. Not like that District of Columbia education system — which spends more per pupil than any of the states and graduates (much less sends on to college) fewer ‘students’ than any of the states.

Solaratov on July 14, 2012 at 11:32 AM

Louisiana actually ranks 4th in oil production, and their federal offshore production produces more oil and any other state which means that most of the Gulf’s offshore service industry is based in Louisiana. Tell me why Louisiana isn’t doing better economically than it is.

blink on July 14, 2012 at 11:24 AM

Because the state is run by a small cadre of rented politicians and influential executives who care nothing about economic diversification, public education, general health or anything except perpetuating their wealth and power. This is, by the way, a bipartisan, though largely conservative effort, and very similar to Venezuela’s (and other resource-rich countries).

urban elitist on July 14, 2012 at 11:33 AM

urban elitist on July 14, 2012 at 10:53 AM

Do you even have a clue as to why Prop 13 was passed? How about I give it to you. California progressive regulations on property and home building was driving up valuations of property faster than inflation. Taxing authorities were raising the taxes so fast that it was becoming impossible for the middle class and seniors to pay the taxes and the government was then taking their properties on tax liens.

BTW California had already shifted a fair portion funding for school districts to the state level because of a law suit that claimed dispartate effects using property taxes as the primary funding mechanism. The effect of the suit was to equalize funding by screwing the whole system. This led to the proposition that schools be funded yearly at 48% of state revenues. That hasn’t worked out well either.

Finally, I taught in lower socio-economic school districts in Southern California for 25 years. The problem wasn’t Prop 13 or funding the problem was teachers. I taught the same students that others taught and complained about. I never had trouble with them and they performed in my classroom. The issue was expectations. I told them they could do well, pushed them to do well and did everything to ensure they could do well. It meant having my classroom open to them when they needed help and not demanding my duty free times like the whiners did. I also gave them my e-mail and phone number so they could get help after school. I never had a problem with crank calls or bad emails. The students repaid my trust with respect.

You are totally clueless about the problems in education.

chemman on July 14, 2012 at 11:34 AM

urban elitist on July 14, 2012 at 11:33 AM

So, where is it you live again so you can tell everyone else that their children are stupid due to their education system?

Come on Urban, grow a pair.

upinak on July 14, 2012 at 11:35 AM

You are totally clueless about the problems in education.

chemman on July 14, 2012 at 11:34 AM

that would be due in part to a crappy education urban received.

BTW nice to see you. :)

upinak on July 14, 2012 at 11:36 AM

Urban elitist: poor children have better education in TX than they do in CA. Minority kids in TX do better than CA minority kids. There is less of a gap in performance between minority and white kids in TX.

These are the facts. CA has all the money and puts out less educated kids.

Dumb.

juliesa on July 14, 2012 at 11:38 AM

upinak on July 14, 2012 at 11:36 AM

Thanks.

chemman on July 14, 2012 at 11:39 AM

It’s worth noting that until Proposition whatever — the tax one — California’s public education system was widely regarded as the nation’s finest, on through the university system

I think I said diversified.

urban elitist on July 14, 2012 at 10:53 AM

7 of the top 20 (nationally) scoring highschools were in Texas (CA had 2)

#1 and #2 were in Dallas Texas (DISD) and are part of the public school magnet system with a high percentage of minority students.

http://apps.washingtonpost.com/local/highschoolchallenge/schools/2011/list/national/

workingclass artist on July 14, 2012 at 11:46 AM

Tell me why Louisiana isn’t doing better economically than it is.

blink on July 14, 2012 at 11:24 AM

Cause the entire Gulf Region has been stymied by the Federal Government?

Oh…and it takes a while to recover after a hurricane like Katrina.

Galveston is still re-building from Ike.

workingclass artist on July 14, 2012 at 11:50 AM

More than a quarter of Texans lack health insurance, the highest rate in the nation, placing a crushing burden on hospitals and doctors who treat patients unable to pay.

Those costs are passed to the insured. Insurance premiums have risen more quickly in Texas than they have nationally over the last seven years. And when compared with incomes, insurance in Texas is less affordable than in every state but Mississippi, according to the nonprofit Commonwealth Fund.

That has taken a toll, as nearly a third of the state’s children did not receive an annual physical and a teeth cleaning in 2007, placing Texas 40th in a state ranking by the fund. Over the last decade, infant mortality rates have risen in Texas while declining nationwide, according to the Centers for Disease Control and Prevention.

Seniors, despite guaranteed Medicare coverage, also are suffering, as nearly 1 in 5 ends up back in the hospital within a month of being released, one of the highest readmission rates in the country and a leading indicator of systemwide problems..

urban elitist on July 14, 2012 at 10:53 AM

Odd…..but your little article fails to mention the illegal alien effect on the health system in Texas (and the other border states).
Perhaps it might enable more American ‘children and seniors’ to get “adequate health care” if everyone was asked to present proof of citizenship upon entry to an emergency room. Those who are illegal would be trucked to the border – by ambulance if necessary – and put into a Mexican hospital.
The increased cost of fuel to truck illegal aliens back to their homeland for treatment would be more than offset by the savings in treatment costs for people who have no right to be here or claim to charitable treatment.

Solaratov on July 14, 2012 at 11:52 AM

chemman on July 14, 2012 at 11:34 AM

excellent summary btw

workingclass artist on July 14, 2012 at 11:53 AM

So, all Mississippi, Alabama, West Virginia Arkansas and Kentucky need to do is discover oil, or shale gas deposits and they’ll be rich!

All the best for North Dakota — I’ve told my son he should move out there for a couple of years — but it’s hardly a replicable economic development strategy. Also, note that resource-based development in places like Venezuela and Louisiana – has not necessarily broad broad-based prosperity.

urban elitist on July 14, 2012 at 9:42 AM

Pennsylvania has this and yet has only recently started to turn it around because the previous Dem administrations wouldn’t take it out of the ground. Now that Repubs are in charge the development is underway.

Having the resource and taking advantage of it are two different things, and apparently which side of the aisle you sit on determines whether you will take advantage of it. So far the leftists won’t bother.

And, yes, there is broad-based prosperity because when you bring people into a state they need lots of goods and services. When energy costs are low, lots of businesses move into the state. It’s states like ND where manufacturing will start to grow because energy and hard-working people will be readily available.

Since Obama doesn’t have any better ideas for “broad-based prosperity” this will do just fine. I’m not sure any of us think that federal stimulus money for “teachers, cops, and firefighters” will grow the economy. I’m willing to bet ND won’t need any federal dollars for the new teachers, cops, and firefighters they will need with all the revenue they are generating.

goflyers on July 14, 2012 at 11:55 AM

Only 5 states do not have collective bargaining for educators and have deemed it illegal. Those states and their ranking on ACT/SAT scores are as follows:

South Carolina – 50th
North Carolina – 49th
Georgia – 48th
Texas – 47th
Virginia – 44th

If you are wondering, Wisconsin, with its collective bargaining for teachers, is ranked 2nd in the country…”

NAEP scores:
http://iowahawk.typepad.com/iowahawk/2011/03/longhorns-17-badgers-1.html

workingclass artist on July 14, 2012 at 11:26 AM

In other words, if the teachers’ unions don’t get their way (and get to loot the public treasury)…they’ll take it out on the children by sluffing-off on teaching them.
That sounds typical.

Solaratov on July 14, 2012 at 12:02 PM

Even the republicans in LA are terrible.

blink on July 14, 2012 at 11:57 AM

Jindal?

upinak on July 14, 2012 at 12:03 PM

In other words, if the teachers’ unions don’t get their way (and get to loot the public treasury)…they’ll take it out on the children by sluffing-off on teaching them.
That sounds typical.

Solaratov on July 14, 2012 at 12:02 PM

that is called the tier system.

upinak on July 14, 2012 at 12:04 PM

Morons. The graph clearly shows that the way to radically increase household income is to grow grow grow government. Even beats that dirty and dastardly fracking that is going to shake us out of earth’s orbit and careen us towards the sun. Can’t you guys read a graph?

/sarc

NOMOBO on July 14, 2012 at 12:07 PM

North Dakota is prosperous? Not so much once DC is done with them.
They must be stealing from California, Illinois, and New York.

Ufdaubet on July 14, 2012 at 8:44 AM

…you know what’s coming…since it “OUR” energy!

KOOLAID2 on July 14, 2012 at 12:27 PM

So, you admit that an ocean of oil isn’t enough for a good economy. You admit that a business-friendly government is also required. Unlike what exists in Venezuela and LA.

UE, I think we’re making progress with you.

blink on July 14, 2012 at 11:49 AM

It’s all in the details, isn;t it? Massachusetts has a great economy, but probably wouldn’t be considered “business friendly” by you. There are a raft of southern states run by “business friendly” conservatives that have third-world economies.

If you slash taxes but don’t fund decent public education, for example, you hurt growth. If you have lax environmental regulations, people get cancer. I’m confident that PA will eventually allow fracking, but their idiot governor wants to give away the gas without royalty payments (putting him to the right of Sarah Palin) and I have farmer friends up there with legitimate questions about groundwater and other environmental concerns that the industry needs to address in a realistic way.

And, by the way, I’m on the side of whatever that libertarian organization is that doesn’t like huge entry barriers to cabs, hairdressers, and other small businesses. And while I don’t support dramatic tax cuts in the current deficit environment, a simplification strategy that eliminates loopholes and complexity would be a pro-business strategy I could support.

urban elitist on July 14, 2012 at 12:28 PM

No, no, no. I think Jindal is a great republican. I’m talking about the deep rooted culture in LA politics. A great governor can only do so much within a few years.

blink on July 14, 2012 at 12:22 PM

These use to be democratic states…it takes a while.

I like Jindal a lot and Louisianians will turn it around…especially when the Boot of the EPA is removed.

workingclass artist on July 14, 2012 at 12:29 PM

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months — and that’s before overtime pay and bonuses are counted.
CW on July 14, 2012 at 9:14 AM

Now that private sector CEO decisions are diverted to bureaucrat’s decision making, the Bureaucrats are defacto CEOs and must be paid accordingly. Besides, people running a 14 trillion dollar economy can’t be left below $150,000 or they would be subject to bribery like they are in other Centrally Controlled and planned economies where government corruption and favoritism is always rampant. If the taxpayer wants the Bureaucrat to put the taxpayer’s interest first, does he not have to outbid the competition for the bureaucrats favors? Of course.

Now go collect your free Obamaphone, food stamps and heating assistance, Section 8 housing subsidy and subsist in idleness and poverty like a good peasant Quit your Bitc*ing.

KW64 on July 14, 2012 at 12:31 PM

I do know this, black oil sunflower seed has gotten expensive.

Bmore on July 14, 2012 at 12:32 PM

I have farmer friends up there with legitimate questions about groundwater and other environmental concerns that the industry needs to address in a realistic way.
urban elitist on July 14, 2012 at 12:28 PM

The Industry has addressed it and Frakking is safe if the drilling company follows the industry safety standards with the quality of piping,construction and cementing/sealing the well. The chemicals are safe.

Texas & OK have been frakking for decades…over a million wells across the country.

workingclass artist on July 14, 2012 at 12:34 PM

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