Monday, January 24, 2011

Texas Economy Struggling Under Republicans

Posted at Jobsanger

The following headline appeared in the Fort Worth Star-Telegram: Texas added 230,800 jobs in December, Workforce Commission says

[But, the first paragraph of the Star-Telegram story says, "Texas employers added 20,000 jobs in December for a total of 230,800 for all of 2010, the Texas Workforce Commission said Friday.]

That 230,800 jobs did not come close to making up for the 359,000 jobs lost in the state. And the number of jobs created in December did not even keep up with the number of people entering the work force. The unemployment rate actually climbed by 0.1% in December and now sits at 8.3% (not counting the people who's benefits have run out, who have given up looking for work, or who are working part-time because they can't find full-time work).

And that doesn't count what the Republican legislature is fixing to do to the Texas economy. The House's Legislative Budget Board has recommended massive cuts to the state budget (and the Senate's recommendations are expected to be as bad). These cuts would eliminate around 10,000 state jobs and make huge cuts to education -- cuts that some think could result in the lay-off of 100,000 teachers and other school employees statewide.

[These cuts in employment will ripple through the state economy causing additional lay-offs across other private businesses. That will result in a further hit to the state's sales tax revenue and create another state budget deficit which will result in future rounds budget cuts and lay-offs ad infinitum.] In spite of all this, our governor continues to brag about the state's economy. He's not just wrong -- he's a fool.

The Texas economy is not doing well at all, and when the legislature finishes there work this session it will be doing even worse. We are probably looking at another year where job losses outnumber job creations. As usual, the Republicans have taken a booming economy and thrown it in the dumper.

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