Thursday, December 15, 2011

Federal Reserve: Wisconsin leads nation in job loss

Where are the jobs?
Not in Wisconsin, according to this map by the Federal Reserve Bank of Philadelphia which illustrates U.S. economic growth from July 1, 2011 when Governor Walker's austerity budget went into effect, to October 1, 2011.   
The color code goes from dark green (high growth) to red (lowest growth.)
Guess which state has dropped to the bottom? That's right.......Walker's Wisconsin!
Wisconsin trails the national economy because the Wisconsin Republican Party's “cuts only” budget sucked billions of dollars of demand out of the state economy. 
 
 When workers are laid off or their incomes decline, they reduce their spending. And when consumers stop spending, businesses don't invest.  Instead, they lay-off  employees and reduce their own spending. A vicious downward cycle unfolds. 
This is exactly what has happened in Wisconsin
Walker's budget reduced public employees' disposable incomes ($3,668 a year for the typical public employee making $40,000 a year), raised taxes on low- income people, and slashed state spending which led to lay-offs of teachers and local government employees further reducing spending. He also rejected $830 million in federal high speed rail stimulus funding.
Wisconsin's economy is struggling because of a lack of demand. The Republican Party's response has been to reduce public demand. The result - Wisconsin, which has lost jobs for the last 5 months, is dead last among 50 states in economic performance.


Where are the jobs? Not in Walker's Wisconsin.

30 comments:

Anonymous said...

Based on the chart, now we know what being a red state really means.. ..

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Anonymous said...

And if we hadn't cut public employees' income, where exactly would that money have come from? By law, we have to have a balanced budget. Here are the other options: 1. Increase taxes on all workers, lowering demand, 2. Increase taxes on businesses, lowering investment (and thus losing jobs), lowering pay for workers (and thus decreasing demand), and/or increasing prices (thus increasing expenses for all, which is the same as decreasing income, thus lowering demand), 3. Cutting vital government services. Who should take the hit? The people who have been coddled and who are going to be taken care of by the public for the rest of their lives. This isn't the Federal government. We can't print money. You're an idiot if you think there were any other options that would have led to a better outcome. Grow up and educate yourself.

Anonymous said...

Anonymous you write as if your in the know and educated yourself. If that is correct why didn't you mention that Gov. Walker was given a surplus of 130 million prior to his cuts. As for the public sector being coddled that is a false statement. I have worked both Private & Public. They each have benefits. It appears that you have not educated yourself on this topic rather just write what the T-party believes. I would say it is time you educate yourself.

Anonymous said...

The only communities that lost teacher & other public positions are those that decided to do a pre-emptive strike against Gov. Walker's law restricting the powers of public unions (i.e., MATC, already suffering from a multi-million dollar -- in the range of $19 million [previously much higher] -- deficit for allowing the unions to dictate what they want). They are also suffering because Gov. Walker's law would not let them increase their share of the property tax levy.

And, how much do you think Gov. Walker got done when, as soon as he took office, he knew he would be facing a recall? How much do you think he got done during the 3 weeks the Capitol was occupied? How much do you think he got done when our elected Democrats walked out in a childish temper tantrum?

The tough decisions Gov. Walker had to make balanced our state budget, and we now have a surplus.

Give Gov. Walker the chance you gave Obama, who has NOT balanced the US budget, but instead, is adding TRILLIONS of dollars in new debt by raising the debt ceiling, a totally unnecessary move.

Instead of raising the debt ceiling, Obama should have cut spending, cut borrowing, and cut his oversizeD staff (including his 15+ czars). We are going to reach a point very soon where China and other countries will cease to loan us money because we can't pay it back.

Anonymous said...

Yea we have a surplus, but no jobs? Who is this stuff benefiting? The man is a total crook and always has been.Cheating at Marquette to get a degree, and then dropping out with less that a C average in the works. Too stupid to cheat for an A, Walker? His policies are not working and will not work. It's wrong to say he couldn't get anything done when he has done plenty.He got public employees to pay in to their pensions, but not without stripping their right to bargain, not only for themselves, but also for the things that go on in the classrooms that our children learn in. Example: 40 kids in the same class. He set up a re-districting, and a voter ID program that keeps people that would not vote for his like from voting at all, in the name of voter fraud! Meanwhile, he and his buddies are having their houses searched by the FBI over his campaign practices. He is a crook! The question should be not whether or not to re-call him. It should be whether or not to throw him in jail.

Anonymous said...

"Who should take the hit? The people who have been coddled and who are going to be taken care of by the public for the rest of their lives."

Speaking of coddling, Anon, I can't help but notice that "Raising taxes for the wealthy" is conspicuously absent from your list of solutions.

Anonymous said...

"Give Gov. Walker the chance you gave Obama, who has NOT balanced the US budget, but instead, is adding TRILLIONS of dollars in new debt by raising the debt ceiling, a totally unnecessary move."

Adding trillions of dollars in new debt... why does that sound so familiar?

Oh, now I remember. It's because Bush did that, too: http://crooksandliars.com/jon-perr/10-inconvenient-truths-about-debt-ceiling#three

But I'm sure you were aware of this and showed an equal amount of spite and anger at the time.

Anonymous said...

After being screwed by Bucky for 40+ years it is time for Wisconsin taxpaying citizens to take back their State from the high spending, big-big government political elite. Significantly downsizing the scope of Wisconsin's lavish governments will cost jobs. Wisconsin is the Nation's #1 manufacturing State. Unionized private sector workers will suffer job losses when competing in a global economy. The Wisconsinites who voted for change are getting what they asked for, real economic vitality. 3-4 months is a short time to change 3-4 decades of Wisconsin mismanagement. Give it time. Capitalism and private sector jobs will prevail when we get government out of the way.

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