Jindalnomics: 7% and Rising

Bobby Jindal spends an awful amount of time appearing with industry executives, handing off big fat wads of taxpayer cash in exchange for a business relocation or plant expansion. Each announcement comes with a “will create 10 million direct jobs and 10 trillion indirect jobs” line, no doubt the result of some sort of Jindal-Jobs-Jenerator contraption. You input the amount of taxpayer cash we want to turn over and the JJJ spits out a random number of mythical jobs this project may create in order to rationalize the huge piece of corporate welfare Jindal just handed over.

It’s easy to hand over mega-slush-fund and tax incentive dollars for Jindal because they are fake. Fake in the sense he doesn’t have to account for their loss nor come back later with any tangible results for the spending.

One number does require some accountability, however, and that number is one that Jindal has avoided mentioning.

7%.

That’s Louisiana’s unemployment rate. And while the national economy continues to improve, Louisiana’s seems to be sputting. After 5 years of Jindalnomics, we’ve gone from sub-4% unemployment to 7%. That’s nearly double.

But that’s not happening elsewhere. In states that Jindal doesn’t govern, overall things are getting much better:

For months, Gov. Bobby Jindal has boasted that Louisiana has a lower unemployment rate than the national average.

If current trends continue, that won’t be true for long.

Figures released last week showed that Louisiana’s unemployment rate rose in June for the sixth straight month, from 5.6 percent in December to 7 percent in June. The national rate has dropped a couple of notches during that time, from 7.8 percent to 7.6 percent.

We seem to be converging and may see those two lines cross each other,” said Greg Albrecht, the chief economist for the state Legislative Fiscal Office.

More from the New Orleans Lens, here.

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Posted on July 24, 2013, in Uncategorized and tagged , , . Bookmark the permalink. 2 Comments.

  1. Gregory Foreman

    I have often wondered what Jindal’s “tax incentives” are costing the state in lost revenue now and the foreseeable future. Based on a speech Jindal gave in Houma earlier this year, not only are corporations in Louisiana not paying income or franchise tax, but the state is actually “paying” corporations $75 to $100 million dollars in refundable tax credits above and beyond the taxes they are not paying. Pathetically, Jindal blamed this fact on the powerful business lobbyist in Baton Rouge conveniently failing to mention the fact that he was the most powerful, most aggressive business lobbyist for business in Baton Rouge. Under Jindal’s leadership and entirely through executive edit(why bother with that “pesky” legislature) businesses have been granted billions of dollars in “tax incentives” to settle, expand and/ or remain in Louisiana. Can we say Shaw Industries? These are monies the state will not see now nor in the foreseeable future. No one, including the legislature, know the ultimate damage to Louisiana’s revenue structure. Why? Because no single department in the executive branch can or will(remember the lack of transparency Jindal exercises over every vestige of the executive branch) provide the figures necessary to determine the ultimate cost of Jindal’s “incentives”. In spite of Jindal’s excessive incentives, Louisiana ranking actually dropped from 31st in 2010 to 32nd in 2011 and remained 32nd for 2012 as reported by the Tax Foundation.(Tax Foundation, 2012 STATE BUSINESS TAX INDEX, Mark Robyn, 1/25/2012. Well, at least the ranking stabilized! It should be more than obvious, but, I’ll say it anyway. Bobby, your plan ain’t working. You’ve had five plus years and Louisiana’s business environment, at least from the tax standpoint, is still sub par. All the while you are cutting support to the citizens of the state, “kissing up” to business and industry in effect “prostituting” the state for your own political gains, the effect of your plans are not only being questioned but are being judged sub par, below average at best. Sacrificing the welfare, the stability, the security of Louisiana’s citizens is not an option.

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  1. Pingback: Jindal’s Economy: Grim and Grimmer | Something Like the Truth

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