Wednesday, June 11, 2014

Wisconsin GDP lagging. Badly.

The Bureau of Economic Analysis released their annual GDP by state report today. And it offered more proof that no, Fitzwalkerstani policies are not "working" in Wisconsin.

At first glance, Wisconsin's 2013 GDP seems merely mediocre, 27th in the nation at a growth rate of 1.7%. However, that was below the U.S. GDP growth rate of 1.8% for 2013, and was the second-lowest in the Midwest.

But what makes this report look worse is the fact that previous years were also revised in this report, and 2012 was revised way down, which makes the 1.7% in 2013 come from a lower base.

Revisions to Wisconsin GDP 2010-2012
2010- Previous: +3.1%, Revised: +2.8%
2011- Previous +1.3%, Revised: +1.7%
2012- Previous +1.5%, Revised +1.0%

That 1.0% growth in 2012 was the slowest growth in the Midwest, and well below the U.S. rate of 2.5%. So in two full years of Act 10 and Walker budgets being in force, the result is growth of 1.0% and 1.7%. And when you look at the three years Walker and WisGOP has been in power, Wisconsin is a clear laggard when it comes to overall GDP growth.

Total GDP growth, Midwest 2010-2013
Ohio +7.70%
Minn +7.50%
Iowa +7.15%
U.S. +6.06%
Mich +5.82%
Ind. +4.92%
Wis. +4.48%
Ill. +3.96%

This is why it blows my mind when I read state polls and more than half of the state thinks the state is "going in the right direction." Other than hometown pride, how can you look at economic numbers like this, combine it with the $1.8 billion in shortfalls that have to be made up in the next budget, and possibly believe things are OK? It is disgraceful how far back we are compared to most of our neighbors, and I don't know why we accept a level of subpar performance in our economy that we'd never accept from the Brewers, Packers, or Badgers.

1 comment:

  1. Given the anemic job creation and tax collection figures so far in 2014, this year isn't exactly shaping up to shine 2013's boots.