What a mess

by | Oct 15, 2014 | Economy, Editor's Blog

It’s becoming increasingly clear that Thom Tillis and the Republicans have made a mess of North Carolina. They promised that slashing taxing and cutting services would jump start our economy and lead to a “Carolina Comeback.” But things aren’t getting better. They are getting worse.

From our employment rate to our revenue stream, the numbers are heading in the wrong direction. Despite Pat McCrory’s cheery demeanor, we’re capital investment has plummeted. While the rest of the country is climbing out of the recession hole, we’re diving back in.

As Seth Effron has noted, our tax revenues are down $321 million compared to the same quarter last year. More tax cuts go into effect in January further reducing revenue streams. The Governor’s budget director Lee Roberts claims that it’s nothing to worry about and that our revenue comes in from taxes paid next spring.

Which leads to the next debacle. Income taxes come from income. All this tax cutting was going to spur a hiring frenzy that would offset the huge income tax cut for the rich. More people working, the logic goes, and we’ll have more revenue coming in.

Well, according to the Bureau of Labor Statistics the labor force is dropping and is at the same level it was in March 2011. Essentially, Republicans have made no progress on this front since they took control of the legislature almost four years ago. In addition, employment is at the lowest it’s been since December 2013 and our unemployment rate has increased every month since April. And finally, wages are stagnant. The median income dropped sharply after 2007 and has remained flat for the past three years.

So here’s the Republican Revolution in a nut shell: Fewer people working. Fewer jobs created. Unemployment rising. 48th in the nation in per pupil spending. And revenue plummeting.

What a comeback.

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