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Red States Prop Up Obama’s Weak Economy

Job growth is far weaker than advertised in many blue states.

by
Tom Blumer

Bio

April 26, 2013 - 12:26 am
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Picking out the worst Obama state culprits is difficult, but here are a few of the most obvious:

  • Illinois (188,000 establishment survey jobs added, but only 71,000 in the household survey) — Obama’s home state is the only one in the union with a higher seasonally adjusted unemployment rate (9.5%) than it had three years ago (9.3%). It is no coincidence that it is also a state which tried — and has obviously failed — to climb out of a dangerous debt hole with massive tax increases.
  • New York (+355,000 establishment vs. only +13,000 household) — Mike Durant at the National Federation of Independent Business referenced a 2011 study showing that the Empire State “said goodbye to more residents in the last decade than any other state.” That exodus has apparently continued into this decade. The state’s current unemployment rate of 8.2% is slightly higher than the 8.1% seen two years ago.
  • Connecticut (+59,000 establishment vs. -32,000 household; you read that right) — Like his gubernatorial counterpart Pat Quinn in Illinois, Governor Dannel Malloy condemned the Nutmeg State to economic misery by increasing 75 different taxes and making insufficient dents in bloated state spending.
  • California (+744,000 establishment, +486,000 household) — The alleged and certainly overhyped resurgence of what used to be known as the Golden State under Governor Jerry Brown is less than two-thirds of what it’s cracked up to be.

These four states and others which are sadly imitating them explain why 1.2 million residents of Obama-supporting states would be working somewhere — either in their home state, or perhaps a neighboring one– if their governors and legislators were applying fiscal and economic policies diametrically opposed to the tax-and-spend approach most of the national establishment in Washington is fiercely defending at the federal level.  But they’re not. Their states, and people, are worse off for their poor decisions.

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Along with having a decades-long career in accounting, finance, training and development, Tom Blumer has written for several national online publications primarily on business, economics, politics and media bias. He has had his own blog, BizzyBlog.com, since 2005, and has been a PJM contributor since 2008.

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All Comments   (11)
All Comments   (11)
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I consider myself as Sean Hannity says a conservative(not just a Republican)
.We have people in our own party,who are trying to change us.
Haven't been the party of Ronald Reagan in years&why the Tea Party began,too!
Must kick out the Rino's&go back to who it once was previously.Nobody should bow to Obama,or his ways that truly are corrupt/warped.Liz
1 year ago
1 year ago Link To Comment
As soon as the gurus of the Left who have done so much to CHANGE the social structure of the nation read of this they'll do what they do.

Spend their "hard-earned money" from clean hands "employment" in non-productive jobs in TV, journalism, advertising, politics, academia and social service and government to colonise the can-do, do-do communities.

They being the "best and brightest - proof in the various communities that applied their ideas of how to live and are now derelict. Move in if close enough to a city with all amenities for "civilised sophisticated" elites and an easy commute.

Their money driving out the natives making it that much easier to colonise and take what they want then move on to fresh fields to plunder, sorry plow. "The Way Of The World" n'est-ce pas?
1 year ago
1 year ago Link To Comment
It would be a credible article if either party was concentrated on fixing the economy with a reasonable approach. But that is not the case and for good cause. NEITHER political party nor their party cohorts has a clue of how to approach all the 'underlying' problems that eventually came home to roost collapsing our economy over of a well known unsustainable bubble driven economy in housing of all things.

We came out of the '29 wall street collapse, the '30s depression, the dust bowl, then the '40s WWII and the '50s Korea wars to go on and become the worlds greatest economic power. Different times and far, far different generations. In more recent times we sure have no shortage of examples of some of the EU's austerity apporoach or Japans spending approach.

The 'underlying problems' of our economic demise have become so many and so complex that there are NO simple partisan political silver bullets. Then of course, economic 'experts' have all become corrupted and radicalized by political ideologies, so they're useless to reconstructing our economies. And lastly, our nations people are so poltically and ideologically divided and becoming more and moreso each passing day, thanks to all the self serving politicians and their political activists. I've never seen much good come from a divided nation consumed with complainers and blamers.

Who among you have rational ideas for a resolve to all the undrerlying problems that have brought us to this point in circustance after many decades under both political parties? Maybe more of the underlying problems rests with the private sector?
1 year ago
1 year ago Link To Comment
To All PJMedia Readers:
Please don’t waste your time and energy on Freke1. He/she has a completely twisted, skewed and perverted perception of reality. He/she sees the world reflected in a funhouse mirror, much like his/her idol Jim Harrishmuck. He/she evades questions and throws tantrums.
1 year ago
1 year ago Link To Comment
Hey, it's now the Pyrite State. I know. I used to be a Kalifornian, but I've since repented of that.
1 year ago
1 year ago Link To Comment
When we let thieves and liars create the stats that they want to see, what do you expect.
Unemployment is now only those who are actively looking for a job. Those who have given up looking, because there are no jobs, do not count anymore in the stats. Yeah right, some more Obama math to go along with the rest of his ideocy. Take a look at every state with democratic control and you wll see a complete mess and nothing but crooked politics.
1 year ago
1 year ago Link To Comment
Doesn't take much effort to find more reliable numbers using em-ployment data vs the labor 'pool' which is pretty accurate data extracting the 16 to 19 groups and those data numbers indicating enrolled in higher education. That said, employed means at least one-hour of payroll work for the reporting period. Otherwise, just consider the data to be worse in bad time and better in good times, than reported and go on. :)
1 year ago
1 year ago Link To Comment
The base data is compiled by state departments of labor or whatever the government calls its agency that manages unemployment insurance, state collected payroll taxes, and which compiles "prevailing wage" data for Davis-Bacon compliance. These agencies are chattel property of the AFL-CIO in union states even in Republican administrations. My state's current Commissioner of Labor is one of only two since statehood who didn't come directly from an AFL-CIO union, and we've had Republican governors for over half of that time and Republican control of one or both bodies of the Legislature since the early '80s.

The wage and employment data can be and often is easily manipulated and all it takes is one call from a union or influential union-owned Democrat to have it manipulated. Long ago when I was young and relatively naive, I called on the economists from our Labor Department's shop responsible for wage and cost data to provide testimony in an interest arbitration with one of our larger unions. Back then, a couple hundred million was actual money, so the difference of a percent or two in bargaining unit wage cost was meaningful. We had no wage increase on the table because the BLS' CPI-U said we actually had deflation in our economy. Our position was that it was a stable bargaining relationship in which wages represented relative market position and we had good comparables to support our position and a bargaining pattern for many years that had predicated wage increases on CPI-U for Anchorage. Lo, and behold, when MY WITNESS takes the stand the SOB starts parrotting the union line about how the BLS statistic didn't accurately reflect the economy because the drop in housing value was masking inflation in other parts of the BLS market basket. Now, that was actually true, as it is today in much of the Country, but the BLS' CPI-U didn't include data on CPI - Less Shelter and the whole bargaining relationship had traditionally been based on CPI-U. I had the Devil's own time refuting his testimony using previous publications from his own agency and testimony from other management witnesses. I wish I could say that it cost the SOB his job but it didn't though I made damn sure he never got promoted by any administration in which I had any influence, and my agency never used or supported Department of Labor data again.
1 year ago
1 year ago Link To Comment
After all that did you learn to correlate government produced data with private sector data? Not all the private sector researchers and statistical analyists are union indocrinated. Theres several of them out there to include Moody's Analytics.
1 year ago
1 year ago Link To Comment
I hate these survey methods of determining the unemployment rate. The U.S. government should have a fixed estimate of the size of the workforce, defined as all men and women of working age (18-65), and the size of the full and part-time workforce based on W-4 tax submissions, adding in all those in full time military service. That is the basic employment ratio. Then cruder estimates can be made to add or subtract for the population of prisons, workforce dropouts, early retirement, and underground, barter-based, and illegal immigrant workers. If we did it this way, the unemployment numbers would be far more accurate, stable, and illuminating, and would be far less prone to political manipulation.

1 year ago
1 year ago Link To Comment
"...and would be far less prone to political manipulation." But that, of course, is its raisson de etre. It is a meaningless data set. You either have a job/ income or you don't. Nothing else matters. Government 'Jobs' actions, at any level, are consistently counter productive.
sigh
1 year ago
1 year ago Link To Comment
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