So how to "fix" the economy? Precisely not with the Democrats' approach. Do it as they do it in Texas.
Kevin D. Williamson's essay in the latest National Review should be required reading for all voting age Americans.
A few cogent passages.
If you want to know where the future is headed, look where the people are going. And if you want to know where the people are going, check with U-Haul. Here's an interesting indicator, first noted by the legendary economist Arthur Laffer: Renting a 26-foot U-Haul truck to go from Austin to San Francisco this July would cost you about $900. Renting the same truck to go from San Francisco to Austin? About $3,000. In the great balance of supply and demand, California has a large supply of people who are demanding to move to Texas. There's a reason for this.
(says Laffer) "Not only does Texas lack a highly progressive income tax — it doesn't have one at all! We hasten to add that the last time we checked, Texas still had literate kids, navigable roads and functioning hospitals, which one would think impossible given the hysterical rhetoric coming from defenders of California's punitive tax system".
Governor Perry sums up the Texas model in five words: "Don't spend all the money." Here's what a good long run of small-government, low-tax conservatism has achieved in Texas: Once a largely agricultural state, Texas today is home to 6 of the 25 largest cities in the country, more than any other state. Texas has a trillion-dollar economy that would make it the 15th-largest national economy in the world if it were, as some of its more spirited partisans sometimes idly suggest it should be, an independent country. By one estimate, 70 percent of the new jobs that were created in the United States in 2008 were created in Texas. Texas is home to America's highest-volume port, the largest medical center in the world, and the headquarters of more Fortune 500 companies than any other state, having surpassed New York in 2008.
Texas's formula for success is classical conservatism: Low spending enables low taxes, while a liberal regulatory environment attracts the capital that makes capitalism work. Texas has a state government that is structurally incapable of taking on the grand political ambitions that characterize states such as California and New York, which leaves the private sector with a relatively open theater of operation.
"There are certain truths that have to be agreed to," Perry says. "One is that economies grow when they are free from over-taxation, over-regulation, over-litigation, and they have a skilled work force. Government isn't difficult in theory — don't spend all the money, keep taxes low, have a fair and predictable regulatory climate, keep frivolous lawsuits to a minimum, and fund an accountable education system so that you have a skilled work force available. Then get the hell out of the way and let the private sector do what the private sector does best.
Note that triad of economy hindering forces - taxation, regulation, litigation - all key parts of the Democrats' domestic agenda.