* We often see critiques of Illinois from right-wing groups like the Illinois Policy Institute or business groups like the NFIB. But here’s one from the left end of the spectrum. Marilyn Katz writing in In These Times…
The past few years have been rough on the people of Illinois. By the end of 2015, Illinois had lost more than 1 million jobs, 795,700 of them during the Great Recession of 2007-2009 alone. At the end of the “recovery,” Illinois has experienced a net loss of 83,900 private sector jobs since the beginning of 2007—losses that continued with another 3,000 jobs lost in 2015.
But the gross numbers don’t tell the whole story. Not only have jobs been lost; a different, poorer workforce as a whole has emerged.
In manufacturing, construction, transportation and information services, 287,400 jobs were lost during the recession years. In the main, they haven’t come back. The only significant growth areas were for jobs in leisure and hospitality, health care and retail—sectors typically associated with low wages.
While Illinois still suffers from higher unemployment than the nation as a whole (5.9 percent as opposed to the nation’s 4.9 percent), the change in the kind of jobs even those employed can get has impoverished the vast majority of people in Illinois. Those at the bottom, the lowest 20 percent, have seen a 15 percent decline in income; those in the middle have seen at least a 4 percent decline. And the median income for all but the highest earners in Illinois had declined by more than $5,000 per household. […]
Even with the Great Recession, Illinois’s GDP grew by nearly $100 billion, from $586 billion in 2007 to $642 billion in 2015. It would have been good news if that growth had benefitted all. Instead, 97.2 percent of all income growth—that’s right, 97.2 percent—went to the top 1 percent of wage earners, with the top 1 percent enhancing their individual incomes by 35 percent while we in the 99 percent saw flat growth (0.2 percent)
As of 2012, the average income of the top 1 percent in Illinois was $1,366,958, while the average for the 99 percent was $46,000 and change. In other words, the small group of those at the top had an average income 29 times that of the rest. Today in Illinois, 50 percent of us earn less than $36,000 a year; 20 percent, less than $15,000.
Some of this is not new. Illinois has long been one of 15 states where the rich have benefitted most in recent decades, with 64.9 percent of all growth going to the top 1% since 1979. For those with a sense of history, there is a more than a degree of irony here. The 1 percent’s share of wealth in Illinois was virtually the same in 2007 as it was in 1928—22.5 percent in 1928, 22.8 in 2007—before unions and battles for racial and gender equality leveled the playing field for decades. All told, since 1979, Illinois’ top 1 percent increased their incomes by 177 percent; the bottom 99 percent saw a decrease of 1.2 percent.
- jim - Friday, Feb 19, 16 @ 11:34 am:
Didn’t Rauner make the point in a recent speech that while Chicago and its environs prospers the rest of the state, particularly, central and southern Illinois lag way behind?
- Anonymous - Friday, Feb 19, 16 @ 11:39 am:
I’m absolutely shocked to hear that the “vast majority” of Illinoisans are “impoverished”.
- 360 Degree TurnAround - Friday, Feb 19, 16 @ 11:42 am:
Rich,
COGFA came out with this report in February. It is probably a fair assessment:
http://cgfa.ilga.gov/Upload/2016MoodysEconomyILforecast.pdf
- Ghost - Friday, Feb 19, 16 @ 11:43 am:
and Rauners olan to cut prevailing wage, reduce take home pay and cut wages of union workers will inly accelerate the loss of inconme in the kiddle class and accelerate its transfer tot the top 1%…. and our elected GOP officials and Ken Dunkin think this is good for the state
- lake county democrat - Friday, Feb 19, 16 @ 11:44 am:
I keep telling certain commenters who tout how Illinois is doing ok that unemployment rate and GDP are meaningless statistics - this explains it more eloquently than I.
But the way to address this isn’t by empowering unions even more, it’s, among other things, making the tax code progressive and using it for programs that help the middle class and putting money into education reforms that are either proven or have some promising research behind them (see North Carolina for how this translates into growth).
Unfortunately, it also requires help on a national level: more progressive taxes, infrastructure spending, stopping corporate inversions, and though many progressives refuse to acknowledge it, limiting the glut of low skilled workers from immigration.
- Williamson County Resident - Friday, Feb 19, 16 @ 11:45 am:
Thanks for posting this Rich. The very last sentence addresses speaks volumes on the core of the problem; “since 1979, Illinois’ top 1 percent increased their incomes by 177 percent; the bottom 99 percent saw a decrease of 1.2 percent”. This begs the question just what are the right wing groups who are shills for the 1 percent complaining about?
- Mama - Friday, Feb 19, 16 @ 11:47 am:
Love this quote by MARILYN KATZ:
“Not satisfied with gaining the governor’s mansion, many of these same billionaires have banded together in a super Pac and raised more than $14 million to convince the rest of us that we are the ones who make too much money.”
- Mama - Friday, Feb 19, 16 @ 11:51 am:
$14 million was raised for Rauner’s election, but only “$1.6 million was raised for ‘Invest for Chidren’, which funds seven child-focused agencies in Illinois.” Now we know where the Super Pac’s priorities are.
Rich, which 7 children agencies are they funding with only $1.6?
- Ghost - Friday, Feb 19, 16 @ 11:53 am:
lake county i agree that empowering unions is not a fix, but decmating them is definetly an acceleration of the problem.
The unions need some reduction in their terms with the state, but not abolishment.
- Ducky LaMoore - Friday, Feb 19, 16 @ 11:55 am:
@Lake County Democrat
I agree that the glut is a problem. And in my opinion, it all goes back to NAFTA. Free trade destroyed the Mexican farmer and American manufacturer. Downward wage pressure was inevitable despite what NAFTA was sold as.
- Trolling Troll - Friday, Feb 19, 16 @ 11:59 am:
From 2007 to 2015 97.2% of all income growth went to the one percent. How much of a percentage of state taxes did they pay during this period?
- Mama - Friday, Feb 19, 16 @ 12:05 pm:
Williamson County Resident @ 11:45 am: “This begs the question just what are the right wing groups who are shills for the 1 percent complaining about?”
They don’t want to pay taxes.
- Mama - Friday, Feb 19, 16 @ 12:08 pm:
- Ghost @ 11:53 am: “The unions need some reduction in their terms with the state, but not abolishment.”
Please explain.
- Anonymous - Friday, Feb 19, 16 @ 12:15 pm:
Your point? snark, snark.
- Buzzie - Friday, Feb 19, 16 @ 12:16 pm:
Tribune reports today that a major contributor and good friend of Rauner, Illinoisan Ken Griffin, has purchased two paintings for $500,000 million. This is the same billionaire who has donated to Republican candidates who support the governor’s “turnaround agenda”. Art obviously has more value than truly needy children and seniors.
- Anonymous - Friday, Feb 19, 16 @ 12:18 pm:
Illinois Democrats have controlled everything from the Chicago City Council to the General Assembly to the Mansion to the White House for the better part of the past decade.
Maybe it is time to consider some different policies than the ones they suggest.
- Mr. Opinion - Friday, Feb 19, 16 @ 12:25 pm:
=Today in Illinois, 50 percent of us earn less than $36,000 a year=
So out of 12.88 million people in the state, that makes the approximate 70k AFscme members in the top 50%. How can they be considered middle class ?
- Judgment Day (On The Road) - Friday, Feb 19, 16 @ 12:30 pm:
“In manufacturing, construction, transportation and information services, 287,400 jobs were lost during the recession years. In the main, they haven’t come back.”
————-
Why are we surprised? All four (4) of the above areas tend to require substantial capital investments to make things happen. Illinois just doesn’t offer many positives to encourage development of job creators who require substantial capital investments.
Note all the craziness this state went through when we were trying to put regulations in place for fracking. By the time we were finally getting close to the finish line, the price of oil collapsed. So all that work (in practical terms) went for naught.
What people don’t realize is there would have been a LOT of spin-off manufacturing, fabrication, and transportation jobs (btw, pretty good pay) if we had been able to get our act together on a timely basis. But this is Illinois.
The State of Illinois seems to go out of it’s way to torture potential business development with an excessive and never ending time consuming regulatory environment.
- 360 Degree TurnAround - Friday, Feb 19, 16 @ 12:37 pm:
Anonymous -
Don’t forget Republicans controlled the Supreme Court. See Citizens United case. That might all change soon.
- Grandson of Man - Friday, Feb 19, 16 @ 12:53 pm:
One reason Bernie Sanders is a viable presidential candidate is his stated opposition to trade deals that outsource jobs and drive down wages. That’s where the Clintons may have a problem. Any Democrats who were or are responsible for bad trade deals should be called out, opposed and be held accountable.
- @MisterJayEm - Friday, Feb 19, 16 @ 12:56 pm:
Let use an example to help identify the flaw in your logic: Imagine a woman who makes $37,000 a year. Out of 12.88 million people in the state, she would be in the top 50%. Does that mean she cannot be considered middle class?
Of course not.
That would merely mean that her income is not representative of the entirety of the middle class, not that she herself isn’t a member of the middle class.
Hope that helps.
– MrJM
- Generation X - Friday, Feb 19, 16 @ 1:10 pm:
15,000+ Jobs created
70 million in taxes collected last year
Rise in tourism
Colorado legalizing Marijuana has boosted their economy.
Illinois has over double the population and no midwest competition if they decided to legalize Cannabis. 20,000 or so jobs would be a welcome addition right about now
- SO IL M - Friday, Feb 19, 16 @ 1:17 pm:
So decades of Progressive Leadership has led to a decreases in the middle class and more wealth and power in the hands of the elite class?
In order for Progressives to “Progress” to the utopia they seek the Middle Class has to be eliminated. You cant wish for and work towards a system that is made up of an elite ruling class and the equal masses of populace, and be surprised when this occurs.
- HangingOn - Friday, Feb 19, 16 @ 1:22 pm:
==the approximate 70k AFscme members==
I’m an AFSCME member and I made less than $36k last year. And I’m not even the lowest paid state worker.
- IllinoisBoi - Friday, Feb 19, 16 @ 1:26 pm:
“97.2 percent—went to the top 1 percent of wage earners, with the top 1 percent enhancing their individual incomes by 35 percent while we in the 99 percent saw flat growth (0.2 percent.”
You lazy worthless workers make too much! We have to be competitive with Mali and South Sudan!
- Wensicia - Friday, Feb 19, 16 @ 1:28 pm:
I’d like to hear Rauner explain how his agenda would increase income for we lesser beings once he eliminates unions.
- Stumpy's bunker - Friday, Feb 19, 16 @ 1:31 pm:
WCR @ 11:45am
===This begs the question just what are the right wing groups who are shills for the 1 percent complaining about?===
They want it all.
Its just good business, ya know.
- Trolling Troll - Friday, Feb 19, 16 @ 1:34 pm:
To the AFSCME 70k quote.
http://m.stltoday.com/news/local/govt-and-politics/kevin-mcdermott/article_2b12074f-2f18-595a-a8b5-6f357501f14c.html?mobile_touch=true
- @MisterJayEm - Friday, Feb 19, 16 @ 1:42 pm:
“You cant wish for and work towards a system that is made up of an elite ruling class and the equal masses of populace, and be surprised when this occurs.”
What do you think that means?
– MrJM
- Stumpy's bunker - Friday, Feb 19, 16 @ 1:46 pm:
This info is a snapshot of the recent past. Where we’re at now has to be worse.
As more and more Illinoisans become disenfranchised and deduce that their political parties are all or part of the problem, desperate, angry eyes will turn toward the likes of Trump and Sanders.
- IllinoisBoi - Friday, Feb 19, 16 @ 1:56 pm:
“In order for Progressives to “Progress” to the utopia they seek the Middle Class has to be eliminated.”
“Progressives” favor the continued transfer of wealth to the richest 1%? Golly that’s a new one on me.
- Trolling Troll - Friday, Feb 19, 16 @ 2:31 pm:
If only an overwhelming majority of voters agreed that there should be an additional tax on millionaires we could probably even the playing field a bit.
- ChrisB - Friday, Feb 19, 16 @ 2:42 pm:
So no one is going to address her gross abuse of statistics? No?
Measure anything against the top 1% and it’s going to be grossly skewed. Show me the distribution across five income buckets, and then we can talk.
- SO IL M - Friday, Feb 19, 16 @ 2:43 pm:
Wensicia—Rauner, who is a Progresseve elitist billionaire, isnt worried about Employee wages. He wants to eliminate Union Leadership, which is also made up of Progressive Elitists, so that he has control over the Members. His agenda is about ending the control of Council 31.
- SO IL M - Friday, Feb 19, 16 @ 2:47 pm:
Stumpy—Electing Trump would be the same as damaging to the country as Rauner is to our State.
- SO IL M - Friday, Feb 19, 16 @ 2:48 pm:
Stumpy—Obviously typing on my phone doesnt work very well for me
- Rich Miller - Friday, Feb 19, 16 @ 2:48 pm:
===So no one is going to address===
You just did.