Barack Obama and his supporters complained bitterly in the wake of last Friday’s pronouncement that “the private sector is doing fine,” accusing the media of taking the remark out of context. The point of his remark, his backers claim, was that compared to the suffering public sector at the state level, the private sector was performing relatively well. That’s not what Obama’s actual claim was, but we’ll let that pass for now. Let’s focus on Obama’s argument for a moment. Just how badly is the public sector performing?
According to that bastion of conservative thought — the New York Times — state tax revenues will hit a five-year high in 2013, the third straight year of improvement after the financial crisis.