* RGA…
A clear contrast in the Illinois governor’s race is emerging between GOP Governor Bruce Rauner, who supports reforms that will help Illinois grow jobs, and Democrat J.B. Pritzker, who wants to hike taxes and do nothing to help Illinois’ business climate.
Rauner has proposed numerous pro-jobs reforms, but they’ve been consistently vetoed by J.B. Pritzker’s top ally, House Speaker Mike Madigan.
Now, the News-Gazette editorial board is slamming J.B. Pritzker for allying with Madigan and having “shown no interest in promoting changes needed to boost the business climate.” With Illinois families and businesses already fleeing the state in record numbers, Pritzker wants a massive tax hike that will make the problem even worse.
Illinoisans know that this November’s election is a choice between J.B. Pritzker’s tax-hike, anti-jobs agenda, and Governor Bruce Rauner’s pro-jobs reforms that will get Illinois back on track.
* From the editorial…
Massachusetts ranks No. 45, Connecticut (46), New Jersey (47), Illinois (48), New York (49) and California (50) [according to Chief Executive magazine].
If that seems familiar, Chief Executive said, “That’s because those are the exact same positions each of these states has occupied in each of the last four years in our annual poll of CEOs about business climates.” […]
Gov. Bruce Rauner, a Republican, was elected four years ago on a platform dedicated to restoring a healthy business climate. But he’s been stopped cold by a Democratic-controlled Legislature determined to maintain the status quo.
That doesn’t mean Democrats are automatically hostile to policies aimed at creating more job opportunities. But Democratic gubernatorial candidate J.B. Pritzker, so far at least, has shown no interest in promoting changes needed to boost the business climate.
That’s the kind of static situation Chief Executive cited as a factor to running in place. Right now, Illinois is two spots from last place and shows no interest in moving up.
Aside from completely absolving Gov. Rauner, the editorial fails to mention the fact that supposedly last place California has had an astonishing rebirth under Gov. Jerry Brown…
California’s economy has surpassed that of the United Kingdom to become the world’s fifth largest, according to new federal data made public on Friday. […]
California last had the world’s fifth largest economy in 2002 but fell as low as 10th in 2012 following the great recession. Since then, the largest US state has added 2 million jobs and grown its GDP by $700bn, now contributing a little over 14% of the US economy despite having 12% of the US population, according to state economists.
California’s GDP growth was 3 percent from 2016 to 2017, ranking it third in the nation behind Washington and Colorado. The state had a $28 billion budget hole when Brown took over, but he’s turned that into a $6.1 billion surplus.
Massachusetts, which Chief Executive magazine ranked 45th, had a 2.6 percent GDP growth, ranking it 11th out of 50. Massachusetts has a popular Republican governor who has worked well with his Democratic legislature.
* Illinois’ GDP growth was just 1.2 percent, ranking us a miserable 33rd. Pritzker’s economic plans don’t really amount to a whole lot. He has a long ways to go to live up to the promise of his Sun-Times endorsement…
Pritzker founded 1871, the tech business incubator in the Merchandise Mart credited with creating some 7,000 jobs. This remarkable nonprofit has raised Chicago’s profile nationwide as a high-tech hub. He served as chairman of Chicago’s Technology and Entrepreneurship Committee. He was a founder of Matter, the nonprofit healthcare technology incubator.
This kind of future-focused approach to economic development is precisely what Illinois sorely needs right now. It is also reflective of what seems to be Pritzker’s philosophy for trying to make a difference in this world: work it from the bottom up.
- wordslinger - Tuesday, May 8, 18 @ 11:41 am:
What a hilarious poll: the fifth largest economy on Planet Earth is worst among the 50 states for doing business.
It’s like the story when jealous generals were whispering to Lincoln that Grant was drunk.
To which Lincoln said, “Find out what he’s drinking and send a case to all my generals.”
- Almost the Weekend - Tuesday, May 8, 18 @ 11:48 am:
I imagine Galvin Belson was asked to submit a ballot for this poll.
- Doofman - Tuesday, May 8, 18 @ 11:48 am:
“That’s a problem that Chief Executive, echoing the concerns of prominent economists including Arthur Laffer, say is bound to get worse.”
Presented without further comment
- Skeptic - Tuesday, May 8, 18 @ 11:59 am:
Of course, there are two faulty premises: 1) He was elected because of his platform, and 2) His “reforms” will work. Neither has been clearly demonstrated by the facts at hand.
- Last Bull Moose - Tuesday, May 8, 18 @ 12:07 pm:
Sounds like they asked ideological questions to guide their results.
They should have asked “Where would you expand your business? What are the top three reasons?”
- City Zen - Tuesday, May 8, 18 @ 12:08 pm:
All the states with the top GDP growth are out west.
- Not It - Tuesday, May 8, 18 @ 12:14 pm:
California’s growth can be attributed to two factors. First, at the beginning of the recession the Republican Governor cut spending drastically, where in Illinois spending was increased through borrowing. Second, California’s tech scene is huge.
- Da Big Bad Wolf - Tuesday, May 8, 18 @ 12:16 pm:
Chief Executive Magazine, isn’t that the magazine take take all Nation’s and In These Times rejects?
- Lost in Chicago - Tuesday, May 8, 18 @ 12:19 pm:
JB did not create 7,000 jobs just because he founded 1871. He maybe created 30 jobs from the 1871 staff, but those other numbers are mainly due to already formed companies moving into 1871’s incubator. Jobs were already created. Any additional jobs after a company moved in could have been added had these companies gone to any one of several co-working spaces. Resources are there at 1871 to help these companies grow, but it would be incorrect to say JB is 100% responsible for 7,000 jobs having been created.
- Baloneymous - Tuesday, May 8, 18 @ 12:20 pm:
Those 5 states = 82.6 million people.
Those 5 states = over 25% of entire US population.
Those 5 states = terrible business climates?
How many CEOs live in those 5 horrible states?
What are the average salaries in those 5 horrible states?
Amazing magazine they got there…
- Ray del Camino - Tuesday, May 8, 18 @ 12:29 pm:
All argument-by-assertion. They want to run down California and Massachusetts, and they want us to become, what? Mississippi and Alabama? Gimme a break.
- wordslinger - Tuesday, May 8, 18 @ 12:31 pm:
–All the states with the top GDP growth are out west.–
Yes, since about 1940. Throw Florida in the bunch, too.
And since about 1970, old Dixie States have been growing, too, as the American Apartheid system that was holding them back was thrown off and they were integrated into the modern economy.
For quite some time, the California and Texas political cultures couldn’t be more different. Yet they’re the big dogs in the country.
So, obviously, state capitals aren’t the be-all-and-end-all for “creating jobs” and “growing the economy.”
That’s not an argument for any particular political policies. It’s just a caution against the snake-oil salesmen in politics and media who tell you they can throw a couple of legislative switches and control the economy.
Do your core jobs — education, infrastructure, public safety.
And maybe don’t triple the unpaid bill backlog like a drunken sailor.
- City Zen - Tuesday, May 8, 18 @ 12:35 pm:
==and they want us to become, what? Mississippi and Alabama?==
How about Washington or Colorado or Utah or Arizona?
- Truthseeker - Tuesday, May 8, 18 @ 12:37 pm:
A litany of bills were debated on the House floor the week before last that are frightening for our business climate.
It will be interesting to see who plays the heavy to quash the nonsensical stuff once Rauner isn’t there to wield the veto pen. JB won’t want this nonsense on his desk; is the Speaker still in a position to tell the Progressives “no”??
- d.p.gumby - Tuesday, May 8, 18 @ 12:41 pm:
CEO’s…aren’t they the ones who make 156 to 1 the pay of the average worker? Yes, I rely on them to reflect reality…
- Sue - Tuesday, May 8, 18 @ 12:43 pm:
Progressive Dems don’t believe business creates jobs but rather the govt does. Good luck once everything returns to Dem control
- Ducky LaMoore - Tuesday, May 8, 18 @ 12:50 pm:
===Progressive Dems don’t believe business creates jobs but rather the govt does. Good luck once everything returns to Dem control===
Conservative Repubs only believe wealthy businessmen create jobs when in reality everyone who purchases goods and services creates jobs. Good luck thinking a governor like that will ever get control again in this state.
- wordslinger - Tuesday, May 8, 18 @ 1:50 pm:
–Progressive Dems don’t believe business creates jobs but rather the govt does.–
You haven’t been paying attention to what Rauner says (wise policy).
Since Day One, Commissar Rauner of Soviet Central Planning has been going on and on about how his government policies were going to “create jobs” and “grow the economy.”
Instead, he gutted higher ed and ran up $12 billion in unpaid bills.
Not good for business.
- Blake - Tuesday, May 8, 18 @ 2:01 pm:
How resistant to enforcing noncompete agreements is Washington? When I saw the highest GDP growth is in Washington, Colorado, & California the thought that went through my mind was an economic white paper I read a few years ago that left the impression the states most resistant to enforcing noncompetes are California, Colorado, & Oregon. I have also read elsewhere about California’s great & more than 100 years old refusal to enforce noncompetes.
- SSL - Tuesday, May 8, 18 @ 2:02 pm:
You can compare California and Illinois if you want, but there are so many different variables that are driving the performance of those states that it isn’t meaningful.
Illinois is in a dreadful position, and is nearing the point of no return unless intelligent decisions are made and implemented in the very near term. Sadly, neither JB nor Rauner are capable of executing what is needed.
Bottom line is you can not alienate a large part of the population and expect to succeed. And by large, I include absolute numbers as well as economic numbers. The cheering by some of making the 2% pay for fixing this broken state is too sad to be funny. First, it fixes nothing as the $2B it supposedly provides is too small to address the problems. That pension ramp looms large. Second, those same 2% are large economic drivers. These are not just wealthy people, these are people who make a lot every year. They like paying taxes as much as JB.
Both sides will probably dig in, and dig in hard. If thoughtful, intelligent people who legitimately care about saving the state aren’t making the decisions, it’s all over.
That’s why I have been advocating keeping the moving boxes nearby.
- wordslinger - Tuesday, May 8, 18 @ 2:13 pm:
–You can compare California and Illinois if you want,–
No one has done that…
–..but there are so many ..different variables that are driving the performance of those states that it isn’t meaningful.–
Yeah, no kidding. That’s why the snake-oil types like Rauner claiming that marginal changes in state policy drive the economy are full of stuff.
The political cultures of California and Texas couldn’t be more different, but they’re the two big dogs. Apparently, state policies aren’t decisive among all those economic variables.
- supplied_demand - Tuesday, May 8, 18 @ 4:14 pm:
==Illinois’ GDP growth was just 1.2 percent, ranking us a miserable 33rd.==
I’d like to see the ranking of GDP per capita as Illinois didn’t grow population like other states. Isn’t it more important how the average citizen is doing? If I add 2% to population and 3% to GDP is that better than 1.2% growth in GDP with a steady population?
- Ron - Tuesday, May 8, 18 @ 5:23 pm:
Illinois GSP per capita is growing as we lose population.
- Anonymous - Tuesday, May 8, 18 @ 6:03 pm:
==What a hilarious poll: the fifth largest economy on Planet Earth is worst among the 50 states for doing business==
Well, it is miserable there. Really difficult. But California has other intangibles that outweigh its weaknesses. That State’s problems are not exactly solved. While wealth is growing, mainly due to high tech companies, there is a net exodus in middle class residents. And working class residents are having a severe shortage of housing, leading to a dramatic spike in homelessness.
- wordslinger - Tuesday, May 8, 18 @ 6:26 pm:
–Well, it is miserable there. Really difficult. But California has other intangibles that outweigh its weaknesses.–
By “intangibles,” you mean you don’t what you’re trying to say?
– That State’s problems are not exactly solved.–
Really? All their problems aren’t solved? But on The Disney Channel shows, all problems are wrapped up in 30 minutes. When do you expect all problems, anywhere, to be solved?
–While wealth is growing, mainly due to high tech companies, there is a net exodus in middle class residents. And working class residents are having a severe shortage of housing–
So there’s a net decrease of population and a severe housing shortage? That’s a neat trick.
In reality, California has added 2.3 million people since 2010. That’s about the current combined populations of DuPage, Lake and Will counties, the three most populated Illinois counties outside of Cook.
Increased demand could lead to shortages and would jack up prices, I’m pretty sure.
https://www.census.gov/quickfacts/CA
- Grandson of Man - Wednesday, May 9, 18 @ 7:39 am:
Here is an article on Minnesota beating Wisconsin economically—states with similar characteristics (per the article). Minnesota raised taxes on the rich, implemented Medicaid expansion, had higher population and wage growth, raised the minimum wage, invested in education and infrastructure, is not RtW, etc.
Per the article, the unionization rate dropped significantly in Wisconsin—which is the true aim of RtW, stripping away collective bargaining and repealing prevailing wage.
https://www.jsonline.com/story/news/politics/2018/05/08/its-liberal-minnesota-vs-gop-wisconsin-study-economic-growth/590813002/
So different as Illinois may be, evidence around the country shows clearly that we don’t have to go the Scott Walker/Rauner way.
- Ron - Wednesday, May 9, 18 @ 8:33 am:
GOM, the big difference is that illinois has a higher tax burden already than Minnesota. And Minnesota is not a kleptocracy.