Land of Laggards
Uggggh. This is so freakin' ugly.
Depressing.
Irresponsible.
Unnecessary.
If only our Illinois state government wouldn't have been such a huge failure over the last 20 years of Mike Madigan and the Ryan / Blagojevich / Quinn / Rauner administrations.
Take a read:
Illinois: Land of Laggards
by: ORPHE PIERRE DIVOUNGUY, Illinois Policy Institute
Politicians like to tout the presence of cranes towering over the Loop and headquarters moving downtown as evidence that Chicago and the state are performing well economically. But economists are trained to care about data. I am an economist. So here's what the numbers say about Illinois: This state does not have a healthy economy, and its business climate is unfriendly to job creators. It's been this way for decades.
According to national statistics from the Bureau of Economic Analysis, Illinois' economy has failed to keep pace with the rest of the nation for the past 50 years. That means our poor economy is not the result of a two-year budget impasse or the Great Recession. Decades of poor policy decisions have made Illinois a place where people and job creators don't feel they can afford to put down roots.
So where does Illinois' economy stand today on three key measurements?
• Illinois' economic growth lags the rest of U.S.
Real gross domestic product measures the value of production. When real GDP growth rates slow, it means we're producing at a slower rate and creating jobs at a slower rate, and as a result, wages are growing at a slower rate. BEA data show Illinois' real GDP has grown more slowly than in the rest of the U.S. since the end of the Great Recession. Illinois' economy grew annually by only 1.6 percent, compared with the 2 percent U.S. average.
• Illinois' employment growth lags the rest of U.S.
The state trails the rest of the nation in job creation, according to the Current Employment Statistics survey published by the Bureau of Labor Statistics. While the nation's average employment grew at a rate of 1.7 percent each year since the end of the recession, Illinois' employed population grew by only 1.2 percent. Many residents have lost faith in finding a job altogether. In 2017, 97,000 job seekers gave up. That's steep in comparison with the rest of the U.S., where labor force participation rebounded to the tune of 665,000 new workers.
• Illinois' tax base is shrinking.
A long history of poor policies has spurred an exodus of people leaving the state for greener pastures. Since 2014, the state's population has declined by almost 80,000 people, meaning fewer and fewer Illinoisans to pay taxes. The erosion of the tax base was caused mainly by the outmigration of Illinoisans. These migrant flows are the state's biggest budget problem. According to IRS data, those who leave Illinois earn on average $19,600 more than those who move in.
The Paul Simon Public Policy Institute cites taxes as the No. 1 reason people give for leaving the state. On average, 30 percent of Illinoisans' paychecks go to federal and state income taxes and property taxes, the largest share compared with neighboring states, based on data from the Current Population survey.
Only bold measures can reverse Illinois' outmigration problem and make the state competitive. Illinois needs to cut income and property taxes to draw residents and businesses back to the state, thereby stimulating job creation and economic growth. This will require politicians to reduce the cost of government. A good first step would be to restrict the growth of state-worker pay. Salaries for Illinois state workers represented by the American Federation of State, County & Municipal Employees grew 41 percent from 2005 to 2015, while earnings for private-sector workers stagnated.
Until state and local lawmakers commit to reducing the overall tax burden, there's little reason to think the state's long-term economic or job prospects will look any brighter. Sometimes the truth hurts. But until state lawmakers face it, the people of Illinois will continue to suffer.
"Laggards"
What a mess. So, so unnecessary.
Grace & Peace & Love to you all -
Matt
Depressing.
Irresponsible.
Unnecessary.
If only our Illinois state government wouldn't have been such a huge failure over the last 20 years of Mike Madigan and the Ryan / Blagojevich / Quinn / Rauner administrations.
Take a read:
Illinois: Land of Laggards
by: ORPHE PIERRE DIVOUNGUY, Illinois Policy Institute
Politicians like to tout the presence of cranes towering over the Loop and headquarters moving downtown as evidence that Chicago and the state are performing well economically. But economists are trained to care about data. I am an economist. So here's what the numbers say about Illinois: This state does not have a healthy economy, and its business climate is unfriendly to job creators. It's been this way for decades.
According to national statistics from the Bureau of Economic Analysis, Illinois' economy has failed to keep pace with the rest of the nation for the past 50 years. That means our poor economy is not the result of a two-year budget impasse or the Great Recession. Decades of poor policy decisions have made Illinois a place where people and job creators don't feel they can afford to put down roots.
So where does Illinois' economy stand today on three key measurements?
• Illinois' economic growth lags the rest of U.S.
Real gross domestic product measures the value of production. When real GDP growth rates slow, it means we're producing at a slower rate and creating jobs at a slower rate, and as a result, wages are growing at a slower rate. BEA data show Illinois' real GDP has grown more slowly than in the rest of the U.S. since the end of the Great Recession. Illinois' economy grew annually by only 1.6 percent, compared with the 2 percent U.S. average.
• Illinois' employment growth lags the rest of U.S.
The state trails the rest of the nation in job creation, according to the Current Employment Statistics survey published by the Bureau of Labor Statistics. While the nation's average employment grew at a rate of 1.7 percent each year since the end of the recession, Illinois' employed population grew by only 1.2 percent. Many residents have lost faith in finding a job altogether. In 2017, 97,000 job seekers gave up. That's steep in comparison with the rest of the U.S., where labor force participation rebounded to the tune of 665,000 new workers.
• Illinois' tax base is shrinking.
A long history of poor policies has spurred an exodus of people leaving the state for greener pastures. Since 2014, the state's population has declined by almost 80,000 people, meaning fewer and fewer Illinoisans to pay taxes. The erosion of the tax base was caused mainly by the outmigration of Illinoisans. These migrant flows are the state's biggest budget problem. According to IRS data, those who leave Illinois earn on average $19,600 more than those who move in.
The Paul Simon Public Policy Institute cites taxes as the No. 1 reason people give for leaving the state. On average, 30 percent of Illinoisans' paychecks go to federal and state income taxes and property taxes, the largest share compared with neighboring states, based on data from the Current Population survey.
Only bold measures can reverse Illinois' outmigration problem and make the state competitive. Illinois needs to cut income and property taxes to draw residents and businesses back to the state, thereby stimulating job creation and economic growth. This will require politicians to reduce the cost of government. A good first step would be to restrict the growth of state-worker pay. Salaries for Illinois state workers represented by the American Federation of State, County & Municipal Employees grew 41 percent from 2005 to 2015, while earnings for private-sector workers stagnated.
Until state and local lawmakers commit to reducing the overall tax burden, there's little reason to think the state's long-term economic or job prospects will look any brighter. Sometimes the truth hurts. But until state lawmakers face it, the people of Illinois will continue to suffer.
"Laggards"
What a mess. So, so unnecessary.
Grace & Peace & Love to you all -
Matt
