“What you see, if you look at the black states — states with 10+ percent unemployment — are two great belts of suffering. One is California/Oregon/Nevada, which is about the burst bubble. The other stretches down across the middle of the country. Except for Florida, which is presumably more bubble damage, what this looks like to me is manufacturing — I know that a large part of it is “Auto Alley”, which is the south-by-east spread of the old Detroit hub that took place as foreign automakers moved in. And manufacturing, remember, has been hit especially hard in this crunch.
All of this suggests that who’s suffering most has little to do with state policies. It’s about what you happened to be doing for a living when the economy fell apart.”