Failed policies have led to a failed state in Illinois

August 28, 2011

How is it that Illinois has lost more jobs during the month of July than any other state in the nation, a total of 24,900 non-farm payroll jobs, after having lost 7,200 jobs in June?   These numbers represent the most recent figures of the Bureau of Labor Statistics.   Additionally, the BOL report notes that Illinois’s unemployment rate has increased to 9.5 percent, which is higher now than the national average.

Like other states, Illinois was beginning to create jobs toward the end of 2010 after the economy seemed to be turning around.  But what did Illinois legislators do in Springfield?  While nationwide states were adopting policy changes to hasten the economic recovery, here in Illinois the General Assembly increased taxes for individuals by 67% and 46% for business, subsequently creating a hostile environment for job growth.

A chart published by the Illinois Policy Institute illustrates the correlation between the steady downward trajectory of jobs lost beginning with the increase of taxes in January through the month of July, 2011.   http://www.illinoispolicy.or/news/article.asp?ArticleSource=4362

Between January and June of this year, 56,223 fewer Illinoisans were employed, thus according Illinois with the dubious honor of having the worst job performance of any other neighboring state during the first half of 2011.

Despite Illinois’s rich cultural history with headquarters locations for several major industries, why has Illinois performed so dismally in job production?

Raising taxes as a workable economic policy to encourage growth is not a recipe for success, yet here in Illinois Democratic policy makers remained chained to the same failed economic policies of the past hoping that this time around success will be the outcome.

Businesses are not prone to hire when the economy is faltering and economic uncertainly exists. Coupled with the expense of doing business in Illinois, existing rules and regulations make it difficult to start and to run businesses.

Just how serious is the exodus of Illinois businesses and jobs to neighboring states?

In an article written primarily by reporter Julie Wernau of the Chicago Tribune on Wednesday, August 24, Politicians employ all means to create jobs, a chart is featured listing 10 companies which have announced plans to move some or all of their operations to Indiana.  Also noted are the financial incentives given by Indiana to each of the10 companies and the projected number of jobs Hoosiers will be the beneficiary of, a net total of 1,171 jobs.

Governor Quinn did convince several high-profile companies not to leave the state by offering tax breaks and incentives.  But is giving tax incentives to a select few and making everyone else pay higher taxes any way to create good will among those who are not so rewarded?

It speaks of favoritism and represents business as usual in Chicago and Springfield, employed especially by those who depend on favoritism to hold on to their reins of power.  It is evident that favoritism has not worked to improve Illinois’s dismal economic outlook, nor has it benefited Illinoisans.

Insuring that Illinois is destined for further economic decline is that the state’s fiscal year 2012 budget increased spending, but it did nothing to address the state’s billions in unpaid bills or its unsustainable  and massive unfunded pension system (Illinois’s 2012 fiscal budget comes in at $32.2 billion; however, in reality the 2012 fiscal budget really amounts to $33.2 billion.  $1 billion was conveniently hidden by carrying the $1 billion amount over into fiscal year 2013.).

Weren’t Illinoisans hurting back in November of last year during the 2010 elections?  It’s evident that many weren’t hurting enough.  Allured by false promises, what did Illinoisans receive for their loyalty in returning to office Democratic legislators who believe in higher taxes, overspending, and rules and regulations that limit economic growth.

Kristina Rasmussen, executive vice president of the Illinois Policy Institute, had this to say in a recent press release from the Illinois Policy Institute:  “The policies currently in place — higher taxes, more spending, and unreformed liabilities — are clearly not working for those who are struggling to make ends meet.”

According to Ms. Rasmussen, “A great starting place for lawmakers eager to create an atmosphere of job growth would be to repeal the recent income tax increase, which robs families and businesses of resources they could put to better use.”

One thing is certain, business as usual cannot continue in Springfield.

Illinoisans are presently receiving a hard dose of reality.  Only time will tell whether the upcoming 2012 elections will allow enough time for enough Illinoisans to understand that a government controlled by one party works to the detriment of all, with only more misery to show for it.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s