Revised State Real GDP Changes in 2013

According to the U.S. Bureau of Economic Analysis, the percentage change of real GDP in 2013 was:

Now recall that real GDP is under-corrected for inflation due to the government insistence in leaving such volatile, but clearly more rapidly increasing cost, items such as food and energy are not included in the cost of living index.  Then also recall that one should really be looking at real per capita GDP since that tells us whether our standard of living is actually increasing.  If the GDP increases by less than the rate of growth of the population, then our standard of living actually falls.  The average US population growth rate was 0.9% from 2001 to 2010, so real GDP increases of 0.9% provides a stagnant standard of living.

New York state which is running ads nationally claiming to be the second best job creator state in the nation clearly underperformed in 2013 with a state GDP that grew by a mere 0.7%.  The state of Maryland, whose Governor O'Malley believes himself ready to run for the presidency, had a 0.0% growth rate.  Yes, preventing the growth of one's own state's GDP now qualifies a politician well for the Democrat Party nomination for the presidency!

Most of the high growth states in the US are in the center of the nation.  The Dakotas, the Rocky Mountain states, Nebraska, Oklahoma, Texas, and West Virginia are the heroic states for those who wish to earn a living.

Is New York State Really a Great Job Creator?

New York state government is spending its taxpayer's money advertising 10 areas near state universities into which a new company or an out-of-state company can move and pay no taxes for 10 years, provided the government likes your business and is given significant controls over your business.  Mostly New York's Democrat Socialist Party controlled government likes certain high technology companies, such as biotechnology companies.

They do not like the vast majority of businesses, at least not enough to give them any tax breaks.  Indeed, most businesses have to be taxed heavily so that the few anointed companies can be lured into the high tax trap of New York and so such advertising can be carried out in Maryland and Oklahoma and many another state.  Even more expensive is the huge welfare state apparatus of New York state.  The only way to fund that redistribution of income is to tax both businesses and better paid persons heavily.

Among the claims in the ad, New York state government claims it has created 400,000 jobs.  They neglect to say over what time period and whether these are net jobs or these are all new jobs with any lost jobs ignored.  The high tax and heavily regulated state of New York is undoubtedly very good at killing jobs, so it is perilous to ignore the jobs destroyed.  According to the Bureau of Labor Statistics, the non-farm seasonally adjusted establishment job tally of private sector jobs increased in New York state from March 2013 to March 2014 by 103,500.  So maybe the 400,000 jobs were net jobs since the depth of the never-ending Great Socialist Recession.  They were not recently created net jobs.  I have ignored any added government jobs since such jobs would only create greater burdens for any private sector company moving to New York.

New York claimed that the 400,000 jobs were the second largest number of jobs created in any state in the US.  In 2010, New York state was the third most populous state, so just to stay even on jobs, it would likely have to produce at least the third most jobs.  Actually, New York state has a population growth estimated from 1 April 2010 to 1 July 2013 of 1.4%, which lags the population growth of 2.4% of the nation as a whole.  What is more, a larger fraction of its population is over 65 years old and a smaller fraction is under 18 years old.  There seems to be no rush of people into New York state owing to good jobs, despite the huge sums of bailout money that the federal government has dumped into New York City and its financial institutions.  That bailout in the form of quantitative easing continues to this day.

Let us examine the growth in the number of non-farm private sector jobs relative to the other states:

There were 26 states in which a higher percentage private sector job increase occurred compared to the 1.45% increase in New York.  This is not such a remarkable achievement by New York as it is represented to be in its ubiquitous ad.  The New New York is not so very different.  It is North Dakota that is the jobs creation giant, albeit in percentage terms only.  Six states have had private sector job growth rates more than twice that of New York state.  In fact, we can see that in this recent period, the claim that New York created the second most jobs in number is clearly wrong.  The population of the state of Texas is greater than that of New York and its job increase of 2.99% clearly means it added many more jobs than did New York.  The population of Florida is about the same as that of New York, so its job increase of 3.49% also means more jobs were created in Florida than in New York.  So, in this time period, at least two states added more jobs than New York did.

The New York state government is running an ad which is very misleading.  There may be some convoluted manner in which it is not a literal lie, but it is surely a serious attempt to mislead the People.

The employment increases in the table above allow us to make a few interesting comments about some other states and the possible presidential prospects for their governors.  Note that Gov. Rick Perry's state of Texas is still tearing up the racetrack in creating jobs with a 2.99% increase between March 2013 and March 2014.  On the other hand, Gov. Chris Christy of New Jersey heads a state government where the private sector job increase is essentially zero at 0.07%, the next to the worst record of any state.  Gov. Scott Walker of Wisconsin has a state with a 1.24% increase, a 32nd ranking counting DC, but at least greater than the population growth in that time.  Gov. Bobby Jindal of Louisiana has a state that is not doing great in the business of job creation either at 1.08% increase and a rank of 35.  On the Democrat Socialist Party side, Gov. Martin O'Malley of Maryland earns his moniker of O'Folley with 40 straight tax increases, a job increase of only 0.52%, and a ranking of 45.  Maryland's population since April 2010 is estimated to have grown by 0.90% a year, so Maryland is not keeping up with the population growth with its meager 0.52% increase in jobs.  I marvel at the ability of some governors to seek higher office when they have not demonstrated that their states can create private sector jobs.

The People should be paying attention to this.  I will acknowledge that some of these states were basket cases and it will take several good governors to allow private industry to turn the states around.  Their state governments have bollixed up the state economies for a very long time in many cases.  The damage done can take a long time to correct and the healing process can take time.  Yet, when good government policies are established, some great results often occur quickly.  The engine of growth is in the private sector, but governments have to stop stuffing the gas tank with sand and sugar.

My Response to a Democrat Politician's Wife Request on Father's Day

Karmen Walker Brown is the wife of Anthony Brown, the present Lt. Governor of the state of Maryland, who is now running for Governor.  Anthony Brown has served under the present governor of Maryland, Martin O'Malley.

O'Malley is a strong Obama supporter and has aspirations to run for the office of the President.  He has also strongly pushed applying the high state sales tax to gasoline sales, on top of the fixed cost gasoline tax now in place.  He has forced Maryland electric utilities to buy expensive alternative fuels and pass the costs on to the consumer.  He increased the sales tax by 20%, the top personal income tax rate by 16%, and the top corporate tax rate by 18%.  He pushed for and signed a gun control law that drastically infringes the right to bear arms in Maryland.  He even promoted and signed a rain tax on Marylanders that taxes them for any impervious surfaces on their property.  Before he became governor, he was mayor of Baltimore and presided over that city's horrendous public school system as it became even worse.  He headed the Democratic Governors Association from 2011 - 2013.

The Democrat Socialist Party has tight control of the Maryland state government.  It has large majorities in both houses of the legislature and it has controlled the governor's office for a long time.  The Democrats manage this dominance with a very touchy, feely approach.  Karmen Brown is playing this game now by requesting huge numbers of Marylanders to sign a Father's Day card for her husband Anthony.  Here is how this works:

If you asked Anthony what the most important thing is to him, I know what his answer would be: Family. Our kids mean the world to him.

Father’s Day is one of Anthony’s favorite days. It’s a time for our family – and families across Maryland – to come together and celebrate what’s really important.

With Father’s Day coming up this weekend, the kids and I are hoping you can help us out. We’re putting together a big card and we want you to sign it! I know he’d love hearing from his friends and supporters on such a special day.

Click here now to wish Anthony a Happy Father’s Day.

For Anthony, there’s no doubt that being a father is his most important job. You can see it in the way he helps the kids with their homework or asks about their day.

He’s as dedicated to them as he is to making life better for kids across Maryland. It’s why he works – every day – to improve schools, create jobs, and ensure that all families have access to the health care they need to thrive. He knows that this great state is only as strong as the families who call Maryland home.

That’s why the kids and I want to give Anthony a big Father’s Day surprise.

Can you take a minute to sign our card for Anthony? Click here to add your name.

Thanks and Happy Father’s Day,

Here is my response to Karmen Brown:

Karmen,

I vote on my conviction that there is no political value as great as that of the individual for his individual rights to life, liberty, property, the ownership of his own body, mind, and labor, and the pursuit of his personal happiness.  The individual has a very wide right to freedom of conscience and association, which is not to be infringed by the state.  Gov. O'Malley has been committed to almost constant infringement of individual rights, as indeed any big government advocate and user of brutal force for any purpose but the protection of individual rights must be.  Lt. Gov. Brown has been his ally in these tyrannical infringements of individual rights.  It is very unlikely that he will be able to convince me that he is the less wrongheaded and evil of the two thugs who will be running for Governor under the nomination of the two major parties.

I believe I was put on your list of favorably inclined people because I believe in marriage equality.  Yes, such a belief is implied by individual rights, but so is the belief that I own my own body and that as such I have the right to control my health care and health insurance.  ObamaCare claims that my body belongs to the government.  I reject that claim and I have no intention of selling my body to the government even at the cost of being sent to prison.  I defend all of the rights of the individual, including the right of some to say things that may hurt the feelings of others. Our right to bear arms shall not be infringed.  Bloggers and all writers have the same freedoms as are protected for newspapermen and for the same reason that we all have the right to use our minds and freely express our beliefs in speech, in writing, and in assembly.  We have the right to choose who we will hire, to choose our clients, to choose our friends, and choose our sex and domestic partners.

The rights of the individual are broad and the legitimate functions of government are narrow.  This was established in our earliest founding document, the Declaration of Independence.  The proclamation there established the basis for a People of sovereign individuals mandating the very limited powers of the Constitution and setting up a government which is not sovereign, but was only a legitimate means for sovereign individuals to protect their individual rights.  Note that the 9th and 10th Amendments of the Bill of Rights further inform us that the individual retains his sovereignty.

These issues are of such critical importance that they must be addressed by rational minds, not by feelings that seek to associate your big government thug with fatherhood and child-raising on Father's Day.  I too am a father and my greatest wish is that my three daughters will some day have federal and state governments that will protect, rather than violate, individual rights.  There is nothing else so important.  This is why many a man has fought for these rights and many have given up their lives to protect them.

In a society which protects individual rights, we are enabled to choose our own values and manage our own lives with all of the advantages of free trades in all aspects of our associations with other individuals.  Then and only then can we all pursue our dreams in a harmonious way.  Then and only then are we free to hope that the future will be good and better for us all.  Free minds are the most essential means for improving our standard of life, our security, and for achieving our happiness.

Charles

Charles R. Anderson, Ph.D.
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Maryland's Missing Millionaires

Gov. Martin O'Folley of Maryland is a determined class warfare enthusiast. Since Maryland has greatly overextended itself with entitlement spending, including over-compensating state employees (see my 6 June 2009 entry), it was desperate to increase tax revenues. Gov. O'Folley and the Democrat legislature increased the income tax rate on millionaires to 6.25%, among other tax increases. The counties in Maryland add on to the income tax rate, with the richest counties adding tax rates of 3.2% on top of the state income tax rate.

The state anticipated collecting an additional $106 million for the politicians to spend. But, the millionaires wound up paying $100 million less instead. In 2007, 3000 millionaires paid taxes in Maryland, while in 2008, only 2000 millionaires paid taxes in Maryland. Some of this decline was due to the recession. Taxes too dependent upon higher income taxpayers are also subject to greater swings in revenue in accordance with the economy's swings. Highly progressive income tax rates have thus created major recession decreases in California, New Jersey, and New York, for example.

Many millionaires own second homes in other states and these are commonly states with lower income taxes than Maryland has. Florida, Virginia, South Carolina, and Delaware are such states where many Marylanders have second homes. It is easy to change residency from Maryland to the state in which their second home lies and it appears that many did just that. I expect we will see the state of Maryland challenge some of these changes of residency. It will be interesting to see how many millionaires have moved out of the state, when someone figures that out. At least, it will be interesting to see how long it will be before there are 3,000 millionaire tax filers in the so-called Free State of Maryland again.

P.S. Most people call the Governor of Maryland Martin O'Malley, but O'Folley is a more honest name, unless you note that Malley relates to mal, which as a noun is 'evil' in French, as an adjective is 'wrong,' and as an adverb is 'badly.'