Meanwhile, California, long a paradise for regulators and public-sector unions, has become a fiscal disaster area. And it isn’t the only dark blue basket case. Eight states had unemployment over 11 percent in June; seven went for Barack Obama last November. Fourteen states are facing 2010 budget gaps that exceed 20 percent of their G.D.P.; only two went for John McCain. (Strikingly, they’re McCain’s own Arizona and Sarah Palin’s Alaska.) Of the nine states that have raised taxes this year, closing deficits at the expense of growth, almost all are liberal bastions.
The urban scholar Joel Kotkin has called this recession a blue-state “meltdown.” That overstates the case: The Deep South has been hit hard by unemployment, and some liberal regions are weathering the storm reasonably well. And clearly part of the blame for the current crisis rests with decisions made in George W. Bush’s Washington.
But in state capital after state capital, the downturn has highlighted the weaknesses of liberal governance — the zeal for unsustainable social spending, the preference for regulation over job creation, the heavy reliance for tax revenue on the volatile incomes of the upper upper class.
And, inevitably, the tendency toward political corruption.