The Nobel Prizewinner caustically dismisses and disparages Republican, “glorious free market,” DeLay-infested Texas, by pointing out that while per capita income in Texas is $37,187, per capita income in New Jersey, “with its oppressive taxes and regulation of everything (what it takes to get permission to cut down a dying tree … ),” is a whopping $49,194.
Yay, New Jersey! Boo, Texas! Right?
Well, not so fast. Maybe it ought to be pointed out that part of the reason–a big part, one imagines–why New Jersey’s per capita income is nearly $12,000 higher than that of Texas, has to do with the fact that the cost of living in New Jersey is much higher than the cost of living in Texas. Indeed, the cost of living in New Jersey is a full eight points higher than the national average.
Does Krugman mention this in his blog post? Nyet.