Wisconsin’s economy continues to be among the nation’s worst performing. A new report by the Bureau of Economic Analysis reports that between 2011 and 2012 the state ranked 41st in nation in personal income growth.The single largest contributor to this dismal performance was the dramatic decline in state and local government income, the direct result of Governor Walker’s austerity economic policies (See table 3).
Wisconsin’s state and local government employees’ incomes shrank by $529 million dollars, a 2.55% decline. Only Louisiana under the leadership of Tea Party favorite, Governor Booby Jindal, experienced as steep a decline according to the analysis.
The Milwaukee Journal Sentinel has repeatedly written that the state’s lack of job creation and weak economic and income growth is inexplicable. This report makes it clear that Wisconsin's weak economic performance is the direct result of Walker’s austerity economics- massive cuts in state aid to local governments, public schools, tech colleges and the UW system. It will be interesting to see if the Milwaukee Journal Sentinel reports that the economic mystery of Wisconsin’s subpar economic growth has been solved.