Day 320: They Took ‘Er Jerbs

Via CapitolFax, Ralph Martire, executive director for the Center for Tax and Budget Accountability, spells out the economic consequences of the state budget war in Springfield in an article for the State Journal-Register:

Meanwhile, the harm caused by Illinois’ disinvestment in social services won’t end with denying vulnerable populations the support they need to lead better, healthier lives. The state’s economy will suffer too. Here’s why. Consumer spending represents 67 to 70 percent of all economic activity. The best consumers are low- and middle-income families, who generally spend most or all of their earnings.
But when state government cuts spending, what’s really getting cut is either the jobs or the wages paid to the workers who actually provide services to the public. For the most part, those workers are middle-income. When they lose jobs or have their wages cut, they spend less in the consumer economy, generating private sector job loss. Based on multipliers developed by Mark Zandi of Moody’s, the bond rating agency, the $400 million to $500 million in estimated social service spending cuts for FY2016 will cause the loss of some 5,000-plus jobs statewide.

That’s just in social services. Add that to the very real job losses that have been happening in higher education and that multiplier effect, and the drag on Illinois’ economy is significant.

Other policy institutes like to bifurcate tax “receivers” like state workers and taxpayers, but the plain truth is that every state worker is also a state taxpayer. State workers generate income for the state through their spending and their taxes JUST LIKE non-government employees.

The stereotype is that off-shoring is destroying U.S. jobs, but here in Illinois, the government is doing a damn good job of destroying them itself.

Heckuva “pro-business” agenda, Governor.

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