Skip to comments.Illinois' Union Led Collapse
Posted on 02/27/2014 11:14:20 AM PST by Kaslin
Michael Lucci at the Illinois Policy Institute has some interesting comments regarding unemployment in Illinois and why it matters.
Via email from Lucci ...
A smaller and smaller percentage of adults are working to support the entire state population. Why does this matter?
Because a booming economy provides the benefits of opportunity and upward mobility. But not only that. Growing the number of taxpayers is essential for funding core government services and pension bills. The only other tools legislators have are tax hikes, which have done more to chase away taxpayers than to fund the government.
The percentage of the working-age population that is employed fell by 5.6 percentage points, from 65 percent in January 2008 to 59.4 percent in December 2013. This percentage, called the employment ratio, has been described by economist Paul Ashworth as the best measure of labor market conditions.
The Great Recession hit the jobs market in January 2008. Since then, Illinois has seen a greater decline in its employment ratio than any other state in the Midwest.
Illinois has 380,000 fewer people employed now than before the recession. According to the Bureau of Labor Statistics, unemployment is still up by nearly 200,000 people, and at least 185,000 people have given up and left the labor force.
There is no solution to the states fiscal problems without a booming economy and a growing tax base. Job No. 1 for Springfield is to create a business-friendly environment. That begins with cuts to the fourth-highest corporate tax rate and ninth-highest tax burden nationally.
Reforming the ninth most expensive regulatory system and the fourth most expensive workers compensation system would lead to welcome opportunities for job seekers.
Indiana and Michigan have led the Midwest in pro-jobs labor reforms by allowing their workers to choose whether to join a union. Illinois is surrounded by states making positive reforms. Its time for officials to get in the game.
Director of Jobs and Growth
Illinois vs. Wisconsin
My slight quibble with the article is Lucci left out Wisconsin for comparison.
Following governor Walker's courageous anti-union stance, Wisconsins state budget went from a $2 billion deficit to a nearly $1 billion surplus. And all this happened with hardly any public-sector employees losing their jobs. Wisconsin is poised to offer its people $500 million a year in tax relief. It looks like Walker picked the right strategy.
Illinois is in a bigger mess. The states pensions are underfunded by at least $100 billion. Powerful teacher unions can shut down schools to win pay hikes from nearly broke school districts. A temporary tax increase is liable to be made permanent or worse, replaced with a progressive income tax that will chase more middle-class families and businesses out of our state.
Lucci may have left out the Wisconsin comparison, but his associate Paul Kersey didn't.
Please consider Kersey's take: Wisconsins labor reforms reach three-year mark: Should Illinois have followed Walkers lead?
Union-Busting is a Godsend
Here is my take: Actual Wisconsin results prove Union-Busting is a "Godsend"; Elimination of Collective Bargaining is the Single Best Thing one Can do for School Kids
It's time to implement national right-to-work laws and put an end to public union collective bargaining nationally.
I salute governor Scott Walker for leading the way. Senator Rand Paul wants to do the same thing nationally. I also salute Senator Paul's efforts.
Just working to pay taxes or for your health insurance is unjust, people need to be free not to work so they don’t have a tax liability or forced into employment for health care.
Man needs to paint, not work for government don’t ya know.
Government employee unions are one of the most dangerous and insane concepts I have ever heard of. They must be outlawed.
If you want to work for USGs it is a service not a tool to control government and therefore the peoples wallet.
We don’t need national right-to-work laws. That’s just falling for the liberal lie. The Constitution already recognizes freedom of association, a God-given right. Instead we need to undo the unconstitutional pro-union laws implemented since FDRs age.
Fear not Illinois.
Your 20 electoral votes are vital to the cause.
The regime will offer you federally guaranteed state bonds someday, along with California and New York.