Employment
CEO Survey: Illinois 3rd Worst State In Which To Do Business
Last week, Chief Executive magazine announced the results of its 9th annual survey regarding the best and worst states in which to do business. From their website:
In its ninth annual survey of CEO opinion about the best and worst states in which to do business, 736 CEOs—the highest response on record—rendered their verdict. Business leaders were asked to grade states with which they are familiar on a variety of competitive metrics that CEOs themselves regard as critical. These include: 1) taxation and regulation; 2) quality of workforce; and 3) living environment. The tax and regulatory grade includes a measure of how CEOs grade a state’s attitude toward business, a key indicator.
The best states in which to do business?
1. Texas (9 consecutive years now)
2. Florida
3. North Carolina
4. Tennessee
5. Indiana
Nice job Indiana!
The “Top 5” were unchanged from last year.
And the worst states in which to do business?
1. California
2. New York
3. Illinois
4. Massachusetts
5. New Jersey
Nice going Illinois. Second year in a row in that position.
The faster Illinois residents dump incompetent and ill-intentioned lawmakers, the sooner the state will be able to make headway on a number of real issues. Avoiding insolvency (somewhat of a stretch at this point) and job retention/attraction readily come to mind here.
By the way, our neighbors to the north- Wisconsin- climbed three spots in this latest survey to number 17. JP Donlon wrote on May 6:
More and more states are getting the pro-growth message. Wisconsin governor Scott Walker’s position is typical of this new thinking. “I’ve never seen a store get more customers by raising its prices, but I’ve seen customers knock down doors when they cut prices,” he says.
You can view the rankings of all 50 U.S. states on the Chief Executive website here.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
Donlon, JP. “States More Aggressive in Competing With One Another.” Chief Executive. 6 May 2013. (http://chiefexecutive.net/states-more-aggressive-in-competing-with-one-another-2013). 13 May 2013.
Peter Schiff Warns Of ‘Phony Jobs In A Phony Economy’
“Total nonfarm payroll employment rose by 165,000 in April, and the unemployment rate was little changed at 7.5 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in professional and business services, food services and drinking places, retail trade, and health care.”
-U.S. Department of Labor, Bureau of Labor Statistics, May 3, 2013
Peter Schiff, the CEO/Chief Global Strategist of Euro Pacific Capital who correctly called the U.S. housing bust and “Panic of ’08,” was critical of the latest U.S. jobs report in his latest entry on The Schiff Report YouTube video blog. Schiff pointed out:
The fact of the matter is, all of the jobs that were created, the reason they were created was because of QE. QE is the only reason we’re creating these jobs. And if the Fed ever were to taper it back, the jobs would disappear. As a matter of fact, the Fed is going to have to up the size of the QE to sustain these jobs. Just like with any drug, you develop a tolerance. And so the more you use, the more you have to use. So we’re going to need ever-increasing doses of QE to maintain these phony jobs.
Meanwhile, the data itself, was not even good.
(Editor’s note: Schiff’s look of disgust after saying this= priceless)
I mean, sure, it beat expectations. Because the bar had been lowered so much. It only created 165,000 jobs. All of those jobs were in the service sector. We didn’t create one manufacturing job. Zero. So we’re not creating the jobs that make us richer. We’re creating the jobs that are actually going to drain our wealth because we’re borrowing money to create them…
The bottom line is the media is going to cover this- the unemployment rate has gone down to 7.5 percent. It’s like a four-year low. We’re creating jobs. They’re going to say that things are getting better. They’re not. They’re not getting better, they’re getting worse. Government statistics don’t tell the whole story. In many cases, they tell the wrong story. And eventually, of course, when the music does stop, these jobs are going to disappear. Along with the phony economic growth that went along with it. One way or another, it’s going to happen.
“Jobs And Stocks — Behind The Numbers Lurks A Bubble Disguised As A Recovery”
YouTube Video
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Redfin CEO Identifies Most- And Least-Vulnerable Metro Housing Markets To Experience Another Bubble
Last week in my Sunday paper, I spotted yet another great article by Chicago Tribune real estate reporter Mary Umberger. It was an interview with Glenn Kelman, chief executive officer of Redfin, a real estate brokerage doing business in 20 U.S. housing markets.
Apparently, Redfin recently ranked 15 major metropolitan areas it perceived as most- and least-vulnerable to experiencing another housing bubble. Kelman told Umberger:
We’ve looked at several factors: income to home-price ratios, ratios of sale price to listing price, the frequency of flips (resales within 18 months of purchase), incidences of bidding wars, and rates of going under contract within two weeks of listing.
From looking at those things, we think there are four markets that are in mini-bubble territory, at risk of price correction: Washington, Los Angeles, San Diego and San Francisco.
At the other end of the list, the least likely to see a correction is Atlanta, followed closely by Chicago, Las Vegas and Dallas.
A new housing bubble. Something I’m starting to hear more of these days.
Anyone remember “crash prophet” Peter Schiff’s warning from last September? I blogged on September 18, 2012:
In his September 14 entry on the The Schiff Report YouTube video blog, Schiff, who correctly-predicted the bursting of the U.S. housing bubble and 2008 global economic crisis, explained to viewers what QE3 was really about:
This is the plan that Ben Bernanke has. Ben Bernanke’s plan to revive the U.S. economy, and create jobs, is to inflate another housing bubble. That’s it. That’s what the Fed’s got. That’s what it came up with. As if the last housing bubble worked out so well for the economy, that the Fed wants an encore.
You can read Umberger’s entire exchange with Redfin’s Kelman on the Tribune website here. Interesting stuff.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Illinois Had 57,800 More Unemployed Individuals Than Jobs Created Last Quarter
The latest employment data is out for the state of Illinois. From an Illinois Department of Employment Security news release yesterday:
The March unemployment rate was 9.5 percent, unchanged from February, according to preliminary data released today by the U.S. Bureau of Labor Statistics (BLS) and the Illinois Department of Employment Security (IDES). As expected, Illinois recorded -17,800 fewer jobs compared to February even as it added +36,600 over March 2012. The data is seasonally adjusted.
“Illinois employers were expected to report fewer positions in March. Economic uncertainty nationally and abroad dampened our country’s job growth. When that happens, Illinois’ share tends to be a negative number,” IDES Director Jay Rowell said. “Monthly snapshots capture a moment in time. When those moments are evaluated together, we see progress away from a global recession and through a stubborn economic growth cycle marked by volatile swings in monthly data here and across our country.”
The three-month moving average of job growth, a data point that smoothes monthly volatility and unpredictable or one time events, shows +1,100 jobs added each month so far this year.
When I crunch IDES employment numbers for all of 2013, a less rosy picture emerges. Using data from their news releases:
January 2013
Employers added 7,100 jobs
Number of unemployed individuals increased 22,900 (+4.0 percent) to 594,800
February 2013
Employers added 12,400 jobs
Number of unemployed individuals increased 34,900 (+5.9 percent) to 629,400
March 2013
Employers shed 17,800 jobs
Number of unemployed individuals increased 1,700 (+0.3 percent) to 629,200
(Editor’s note: Is it just me or do some of the above numbers not jive? Oh well, that’s IDES’s deal. I’m just crunching the numbers they provided.)
In the first quarter of 2013, Illinois employers added a total of 1,700 jobs.
At the same time, the number of unemployed individuals increased 59,500.
Which, if my math is correct, leaves the state with 57,800 more unemployed individuals than there were jobs created in the first quarter of this year.
If you’re looking for a job/looking to change jobs here in the “Land of Lincoln,” you might want to ramp up your efforts if you aren’t doing so already.
The IDES news releases I used are located here, here, and here.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Illinois Unemployment Rate Climbs To 9.5 Percent In February
According to preliminary data released Thursday by the U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security (IDES), the February unemployment rate in the state of Illinois climbed to 9.5 percent from the previous month. A news release on the IDES website stated:
In February 2013, the number of unemployed individuals increased +34,900 (+5.9 percent) to 629,400.
In January, the unemployment rate in the “Land of Lincoln” was 9.0 percent. That number stood at 8.9 percent back in February 2012.
Nationally, the “official” unemployment rate was 7.7 percent last month.
You can read the entire IDES news release on their website here.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Illinois Governor Pat Quinn Goes After Corporate Tax ‘Loopholes’ To Pay Bills
“Thirteen area companies say they may cut more than 1,100 jobs in the near future, according to the state’s Worker Adjustment and Retraining Notification (WARN) Act report for February.”
-Chicago Tribune, March 5, 2013
Yesterday, Illinois Governor Pat Quinn proposed a $62.4 billion budget for the State of Illinois in 2014. Ray Long reported on the Chicago Tribune website Wednesday:
Quinn also proposed whittling down the state’s $10 billion backlog of unpaid bills by closing what he calls corporate tax loopholes, a move that business groups say amounts to tax hikes on them. Quinn suggested suspending three so-called loopholes that bring in $445 million a year: the federal production activities break, the non-combination rule and the foreign divided allowance.
(Editor’s note: Italics added for emphasis)
From a transcript of the governor’s budget address to the Illinois General Assembly:
Over the next 12 weeks, we should work together to enact legislation that suspends unnecessary corporate tax loopholes and dedicates the resulting revenue to a new Bill Payment Trust Fund.
For example, we should suspend the Foreign Dividend corporate loophole. We should also join other states that have decoupled from the Federal Production Activities loophole. And we should suspend the Non-Combination Rule that allows big corporations to shift their income to locations outside Illinois. Together, these three loopholes alone cost our treasury about $445 million per year.
Suspending corporate loopholes like these until the bills are paid will be good for our vendors and good for our economy.
You know what’s “good for our vendors and good for our economy?” Legislators in Springfield not spending taxpayers’ hard-earned money like drunken sailors. Illinois, like Uncle Sam, has a debilitating spending problem. If the state didn’t spend so much, it might be able to afford to pay its vendors.
Governor Quinn added in his budget address:
Why should we give costly, ineffective loopholes to some of the biggest and most profitable corporations on earth, when we have bills to pay?
Maybe because the jobs these corporations provide are desperately-needed by your constituents? The state’s “official” unemployment rate was 8.6 percent at the end of last year, significantly above the national rate. These days, the “Land of Lincoln” is fast-acquiring a reputation for being bad for business (raising corporate income taxes 46 percent at the beginning of 2011 can have that effect), with our neighbors only too happy to poach companies looking to move to this part of the Midwest or in the start-up phase. And with the businesses go the jobs.
Does it really make sense to pursue “a move that business groups say amounts to tax hikes on them” in light of all this?
After all, if these loopholes are really so evil and detrimental to the State’s bottom line, why would the Governor propose to suspend them only “until the bills are paid?”
Rather than becoming even more business-unfriendly, the State of Illinois, its vendors, and its constituents are better served by a reinvigorated program that attracts, grows, and retains business here. Financial incentives will almost certainly play a role in this initiative. And with the businesses now come the jobs. Along with the tax revenue to pay off our “tab” from all that drunken spending over the years.
Keep on antagonizing the private sector, and the state will continue on its present course of becoming one giant ghetto smack dab in the middle of the Midwest.
You can read Governor Quinn’s entire 2014 budget address here.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
Long, Ray. “Quinn blames lawmakers for inaction on pension reform.” Chicago Tribune. 6 Mar. 2013. (http://www.chicagotribune.com/news/politics/clout/chi-quinn-blames-lawmakers-for-inaction-on-pension-reform-20130306,0,971611.story). 6 Mar. 2013.
Chicago Murders Down Last Month Due To More Cops On The Streets?
Here in Chicago, the news media is making a big deal about the historically-low number of murders here in February. It seems a correlation is trying to be made between the few homicides and the Chicago Police Department paying cops overtime to saturate the problem areas of the city. Jon Seidel reported on the Chicago Sun-Times website yesterday:
The Chicago Police Department is considering the expansion of the “hot zone” crime-fighting strategy highlighted by Supt. Garry McCarthy this week as the city recorded a historically low number of murders in February.
McCarthy is paying overtime to 200 officers for nightly patrols of 10 areas identified in a three-year and one-year analysis of murders, shootings and robberies across the city.
It will be interesting to see if murders decline over time while this crime-fighting strategy is pursued. Personally, I think the saturation had some effect on last month’s homicides. However, I suspect the cold, snowy weather also had a lot to do with the low numbers. When spring-like temperatures finally arrive here, look for the bodies to start stacking up again.
If a correlation is found between more cops in the “hot zone” and less murders, funding this crime-fighting strategy through overtime pay isn’t going to cut it if City Hall is serious about fighting violent crime and beating-back our growing reputation as the “Deadliest Global City.” Hiring new beat cops will be needed. Even a correlation isn’t found, for that matter. Consider what Fran Spielman of the Sun-Times wrote yesterday about Chicago Police Department manpower issues:
Emanuel campaigned on a promise to add 1,000 police officers not now on the street. Instead, he has reassigned 1,019 police officers to beat patrol, half of whom already had been on the street in now-disbanded specialized units.
The Chicago Sun-Times reported in late December that, as of Oct. 15, a total of 6,638 rank-and-file officers were assigned to police beats citywide, down from 6,746 beat cops at the start of 2011.
The reason is simple: For every newly hired officer assigned to a beat during the past two years, six other sworn officers have retired. And because about 1,200 retirements have sharply depleted the payroll, rank-and-file police staffing even in some high-crime areas where new officers were added last year is again declining, the Sun-Times found.
(Editor’s note: Italics added for emphasis)
Like I said, overtime isn’t going to cut it. More beat cops need to be hired, trained, and deployed yesterday to make progress in the ongoing fight against violent crime and the city’s growing reputation as a war zone.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Sources:
Seidel, Jon. “Supt. McCarthy considers expanding ‘hot zone’ crime-fighting strategy.” Chicago Sun-Times. 4 Mar. 2013. (http://www.suntimes.com/18628475-761/supt-mccarthy-considers-expanding-hot-zone-crime-fighting-strategy.html). 5 Mar. 2013.
Spielman, Fran. “Suit: Chicago Police Department washes out cops’ relatives as recruits.” Chicago Sun-Times. 4 Mar. 2013. (www.suntimes.com/news/cityhall/18630237-418/suit-chicago-police-department-washes-out-cops-relatives-as-recruits.html). 5 Mar. 2013.
Illinois Governor’s Spokesperson: ‘We’re Facing The Worst Recession Since The Great Depression’
Reading the Chicago Tribune website last night I saw that Governor Pat Quinn will be proposing a $30 billion-plus budget this week for the State of Illinois.
The Tribune’s Ray Long provided some of the latest figures showing just how precarious the state’s financial situation really is these days:
• $96.8 billion in unfunded debt to five state pension systems
• $9.7 billion in unpaid bills
• 8.7 percent unemployment in December, almost a percentage point higher than the national unemployment rate
• $6.1 billion annual pension payment in the next budget year- $900 million more than in the current one
One word comes to mind. Fugly.
Then there’s this from Long’s piece:
“When you’re the chief executive, you face challenges from the outside that are not of your making,” said Quinn spokeswoman Brooke Anderson. “The governor’s job is to control the things he can and manage the elements that are outside his control. But I’d say that we’ve been in a perfect storm since the moment Gov. Quinn got here. We’re facing the worst recession since the Great Depression, decades of financial mismanagement that has been culminating in the pension crisis and unpaid bills. And you have to deal with that.”
“We’re facing the worst recession since the Great Depression”
What about that economic recovery Governor Quinn said was taking place here in the “Land of Lincoln?” From a February 6 article on the Tribune website:
“Do we want, in the years to come, a prosperous Illinois where working people continue to have good jobs, where businesses thrive, and where all our children have a world-class education?” Quinn told the House and Senate. “Or do we want to stop the progress and watch our economic recovery stall?”
(Editor’s note: Italics added for emphasis)
Let me guess. That bit about the recession is only the opinion of Quinn’s “mouthpiece.” And she’s trying to shield her boss from some blame.
Fair enough. But the thing is, Ms. Anderson- either knowingly or unknowingly- is on to something. We may not technically be in a recession these days, but for many Illinois residents it probably doesn’t feel like much of a recovery either.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Sources:
Long, Ray. “Gov. Pat Quinn to unveil $30 billion-plus Illinois budget.” Chicago Tribune. 3 Mar. 2013. (http://www.chicagotribune.com/news/local/ct-met-quinn-budget-20130304,0,7431041,full.story). 3 Mar. 2013.
Garcia, Monique, Long, Ray, and Guerrero, Rafael. “Quinn wants minimum wage hike, assault weapons ban.” Chicago Tribune. 6 Feb. 2013. (http://articles.chicagotribune.com/2013-02-06/news/chi-quinn-to-call-for-minimum-wage-increase-to-10-an-hour-20130206_1_assault-weapons-minimum-wage-pat-quinn-today). 3 Mar. 2013.
Signs Of The Time, Part 60
This Tuesday, my girlfriend asked, “So, are you going to watch the State of the Union address tonight?”
My answer? “No, because I already know what Obama’s going to say- he wants more gun ‘control’ and he’s got this plan to create more jobs and improve the economy.”
So, how far off the mark was I?
Apparently, I was just one of hundreds of millions of Americans who tuned the U.S. President out that night. Rick Kissell revealed on the website of entertainment publication Variety yesterday:
President Obama’s State of the Union address on Tuesday night drew a combined 33.5 million viewers across 16 networks, according to Nielsen — the smallest crowd for the event in 13 years.
Obama has now seen dwindling numbers for each of its last four State of the Union addresses. After drawing 52.37 million for his inaugural SOTU in 2009, he drew 48 million in 2010, 42.79 million in 2011 and 37.75 million a year ago.
(Editor’s note: Italics added for emphasis)
To be fair, I’m not a big fan of these events, no matter who is sitting in the White House. Why’s that? Simple.
Politicians will tell you what you want to hear.
And actions speak louder than words.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
Kissell, Rick. “Obama’s State of the Union draws 33.5 million.” Variety. 13 Feb. 2013. (http://www.variety.com/article/VR1118066189/). 14 Feb. 2013.
Illinois Governor Pat Quinn Proposes Highest Minimum Wage In The U.S.
Fall 1986. I was hanging out with my older sister in her bedroom when I came across a binder for some basic economics/personal finance class that she was enrolled in at the local public high school. As I leafed through it, I thought, “This is some pretty cool stuff- I hope I get the chance to take a class like this when I’m in high school next year.” I didn’t. Not in my freshmen year or any other year. I ended up at an all-boys Roman Catholic college preparatory high school, where such material just wasn’t taught.
Latin, yes. Economics/personal finance, no.
Ita sit (so be it).
In fact, Illinois Governor Pat Quinn also attended the same school. Both of us might have been able to benefit greatly from such instruction early on.
Perhaps one more than the other, based on a new minimum wage hike the Chicago Democrat proposed yesterday in his “State of the State” address. From Paul Merrion on the Crain’s Chicago Business website yesterday:
Gov. Pat Quinn’s call for a $10 minimum wage has created yet another firestorm for the state’s business community.
While economists question whether higher minimum wages hurt jobs and make some states less competitive than others, Illinois business leaders view the governor’s proposal as one more blow to the state’s battered business climate.
Illinois already has the fourth-highest minimum wage at $8.25 an hour, and raising it more than 21 percent over four years would put it far above Indiana or other neighboring states eager to attract Illinois companies to relocate.
According to Merrion, a minimum wage of $10 would be the highest in the country.
Supporters of Quinn’s minimum wage hike are calling it “pro-worker.”
Whether or not “higher minimum wages hurt jobs” directly, a higher wage, in conjunction with the state’s huge fiscal mess and recent (January 2011) corporate income tax rate hike of 46 percent, might be the last straw for Illinois companies contemplating leaving the state and kill the formation of new businesses here. By itself, the effects of the hike may not be significant. But taking everything else into consideration, the growing belief that Illinois is “anti-business” will probably be magnified by its implementation, and jobs could be impacted as a result.
Pro-worker? What good’s a minimum wage hike if jobs leave the state and new ones aren’t created?
Economics 101, my man. Economics 101.
By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)
Source:
Merrion, Paul. “Quinn’s call for $10 minimum wage riles business.” Crain’s Chicago Business. 6 Feb 2013. (http://www.chicagobusiness.com/article/20130206/NEWS02/130209864/quinns-call-for-10-minimum-wage-riles-business). 7 Feb. 2013.
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