The high tax policies of the Federal government and the Democratic Northeastern governors are hurting the local economy. However, Republican governors have begun to repair the damage by lowering taxes. However, the region is still suffering with a slower rate of employment growth than the nation as a whole. Even saddled with a slow regional economy, New Jersey's economy has proven better at creating jobs than its neighbors. The state and national economy are very intertwined.
Decisions made by the federal government can hurt or help a local economy.
The critics of tax cuts have missed the mark. The appropriate policy is not a question of economic reality but a question of political will. His veto was a serious setback to the cause of balanced budgets. New Jersey and Michigan demonstrate that government can cut taxes and balance the budget without serious declines in government services. Well, Trenton and Lansing have both experimented with tax cuts and balanced budgets.