Change Maryland, or pack up and go?

It seems to be the question on the minds of many people, including gubernatorial candidate Larry Hogan. His campaign noted on Wednesday that:

Gubernatorial candidate Larry Hogan this evening said the following of today’s Gallop (sic) poll that half of all Maryland residents would leave if they could, worse sentiment than all but two states.

“We know from Change Maryland’s Taxpayer Migration Study that under Martin O’Malley and Anthony Brown, more than 6,500 businesses and 31,000 residents fled Maryland’s crushing taxes, fees, tolls and regulations.  Now, we learn that nearly half of Maryland residents would leave our state if they could.

 This tragic situation is the direct result of the failed policies of Martin O’Malley, Anthony Brown and Doug Gansler and one-party control in Annapolis.  The only way to make Maryland a state where people not only want to live but can afford to live again is to end the reckless fiscal policies of the past eight years.”

The two states cited as being ahead of Maryland in this Gallup Poll were Illinois at 50% and Connecticut with 49% – Maryland was third at 47%. None of our neighboring states made the top or bottom 10 in the survey release.

So the logical next question I had was whether people are acting on this desire to vacate our premises, and in a number of areas they are. For the most part, what they have in common is that the nine counties where I found slow to nonexistent growth – or even a decline – is that they are among Maryland’s most rural. (Baltimore City also makes this list, and it shares many of the same economic problems as its rural brethren.) This data is gleaned from Census Bureau estimates of population in both 2012 and 2013, compared with the official 2010 count.

Out of 23 counties and Baltimore City, the state’s population grew at a modest 2.7% clip between 2010 and 2013. But five counties lost population overall: Allegany and Garrett in western Maryland, and Caroline, Kent, and Somerset on the Eastern Shore. Others which lost population between 2012 and 2013, according to Census estimates, were Baltimore City and Queen Anne’s and Talbot counties on the Eastern Shore.

There was very slow growth (less than 1% between 2010 and 2013) in Carroll, Dorchester, and Worcester counties, the latter two also representing the Eastern Shore. While no county on the Eastern Shore matched Maryland’s overall growth, Wicomico came the closest at 2.2% and is now barely 1,000 citizens smaller than Cecil County, the largest of the nine Eastern Shore counties.

Perhaps it’s a little easier to see the reason if you compare unemployment data over the last several years with the growth (or loss) in population. All five counties which lost population overall have an unemployment rate persistently above state average, with most of the rest experiencing slow growth or a loss between 2012 and 2013 also suffering from above-average rates. (Carroll and Queen Anne’s counties are the two exceptions; however, other bedroom suburb counties such as Charles, Howard, and Harford counties are still growing.)

It all presents a sort of vicious cycle: people leave because they perceive a lack of opportunity, which leads to other employers closing up shop and people leaving as the economic pie shrinks yet again. It’s been my contention that the state’s onerous policies on growth and the environment, particularly in more or less undeveloped areas like the Eastern Shore, are retarding the potential of these areas to grow on their own so people look for greener pastures. Those who are raised in rural areas are either heading to the more developed areas of the state or abandoning it entirely.

One thing I haven’t heard a lot of discussion about during this gubernatorial campaign is the concept of local control. Maybe they haven’t expanded on this yet, but the range of solutions I hear from all of the candidates is one of a top-down nature. Certainly there is a place for action from the state, particularly on tax and fiscal policies. But where is the passion for restoring local control? I hear a lot about this on the educational front thanks to Common Core, but what about other areas like planning and zoning? Where is the push to let the counties be their own tiny laboratories of policy experiment such as the states were meant to be before the federal government decided to run the whole ball of wax over the last 20 to 25 years?

I know better than to expect such rhetoric from the Democratic side of the aisle, because their sole intention seems to be consolidating government at the expense of the common man, creating in average Joes the serf-like dependence on those for whom power is the ultimate aphrodisiac. So it’s up to the conservatives in the race to explain how they would have the state step aside and allow those rural counties which seem to be the biggest victims of state policy to flourish like some of their more urban counterparts.

Meanwhile, Richard Falknor at Blue Ridge Forum suggests his own bottoms-up approach.

Pointing out and planning solutions

In life there is a difference between saying and doing. In this case neither protagonist, unfortunately, is in a position where they can do much more than talk and advocate but it is interesting to see what the two men in question have to say about a paticular situation.

First I’ll point out the talker:

More and more of our friends and neighbors are unemployed and our state economy remains stalled. Clearly, the economic policies of Martin O’Malley and Anthony Brown have failed, and it’s time for new leadership and a new direction in Annapolis.

The O’Malley/Brown Administration continues to drive taxpayers and job creators from Maryland and into the arms of better run, lower cost states.

Those were the words of gubernatiorial candidate Larry Hogan, whose campaign went on to point out that 9,800 Marylanders were furloughed in January and the state endured its worst year of job creation since the recession ended in 2009. (At least for some parts of the state, the question of whether we are back in one is open for debate.)

I will give some credit to Larry for beginning to round out a platform which doesn’t simply bash the incumbent and his heir apparent for tax increases or cite his group’s social media prowess:

Hogan, a business leader and former Maryland state cabinet secretary, favors a pro-growth agenda that combines reigning (sic) in Annapolis spending, jump starting the economy by cutting taxes on workers and their employers, and aggressively courting larger employers which in recent years have left Maryland for Virginia and other states.

We’re still a little vague as to specifics, but the ideas are mostly right out of the conservative playbook and certainly won’t hurt. I’m ever-so-slightly leery of the “cutting taxes on workers and their employers” line because that suggests only a targeted tax cut rather than the flattening (or complete elimination) of rates we need, but we’ll see where Larry goes with this one.

On the other hand – and I really wish he had said it a month ago, because it would have went perfectly with this post – David Craig has a grand idea:

Harford County Executive and Maryland Governor Candidate David Craig called on incumbent Governor Martin O’Malley to push the Obama Administration to complete a final regulatory review to enable a facility in southern Maryland to export liquefied natural gas. The issue takes on greater urgency as the Ukraine and several European countries seek long-term solutions to reduce dependence on Russian energy exports.

“Now is not the time for dithering and red tape,” said Craig. “Maryland is on the verge of being only the second state in the country to export liquefied natural gas and our proximity to the Marcellus Shale, and the Atlantic Ocean and existing infrastructure gives us a competitive advantage that nobody else has. Maryland can attract thousands of energy sector jobs and help assert U.S. influence in the crisis in the Ukraine. But we must act now.”

Ambassadors to the U.S. from Hungary, Poland and the Czech and Slovak republics wrote House Speaker John Boehner last week that U.S. “natural gas would be much welcome in Central and Eastern Europe, and Congressional action to expedite [liquefied natural gas] exports to America’s allies would come at a critically important time for the region.”

The U.S. Department of Energy has approved just six export licenses for LNG projects, including Cove Point, since 2011. Dominion Resources-owned Cove Point, in Lusby, MD, is one of about 20 U.S. projects that want to export LNG. Of those, only one, in Louisiana, has full federal permitting.

Delays in Maryland are coming on multiple fronts. Political support among the O’Malley-Brown Administration is non-existent. Gubernatorial candidate and legislator Heather Mizeur is leading the charge in outright opposition to the project, while Lt. Gov. and front-runner candidate Anthony Brown promotes “environmental justice,” a left-wing social movement that attempts to stifle energy exploration wherever politically-favored constituencies may object. The other democratic gubernatorial candidate, the current Attorney General, is opposed to timely approval of the project. Apart from general statements about the importance of developing jobs and traditional forms of energy, GOP primary candidates for Governor have heretofore not yet articulated positions on the issue. (Links added.)

Given my interest in energy-related issues, I can’t believe I missed that originally – the release has been out about a week – but I’m glad David Craig is coming out on the right side of this issue. As I pointed out last month, Dominion Resources, the operator of the Cove Point facility, estimated that 4,000 construction jobs and 14,600 permanent positions could be created through this $3.5 billion investment. Those could be 14,600 people paying taxes and investing in our communities rather than wondering what comes next after the unemployment runs out or making plans to escape Maryland for greener pastures like Virginia, the Carolinas, Florida, or Texas. Democrats often talk about making “investments” with our tax dollars, well, here’s an investment that the private sector is willing to make and government is mad because they can’t control who receives it. Let’s throw them a pity party: awwwwwwww….

Running mate Jeannie Haddaway made another good point in that statement:

Instead of picking winners and losers and subsidizing the most expensive options such as wind energy, we should be taking advantage of our existing resources and diversifying in a way that is meaningful to our economy and to job creation.

The choice is clear, the opportunity is now.

I look at it this way: if there were a market for wind energy, we would already have plenty of infrastructure out there. But the fact we have to subsidize its meager presence and carve out market share for it tells me wind is an economic loser overall. Just like solar energy, it’s only as reliable as atmospheric conditions allow it to be. And while solar and wind are considered “green” energy, the birds being cooked or bats being exterminated might beg to differ.

So we can exacerbate the unemployment problem or we can put the people in place to help create jobs. It’s your choice, Maryland.

Back to that three letter word: J-O-B-S

I still like picking on Joe Biden. But over the last month or so I’ve collected a lot of divergent information on policy suggestions, each of which promses to be the magic elixir to get our economy moving in the right direction again.

I think the key to this lies in two areas: manufacturing and energy. In that respect, I keep a lot of information handy to discuss in this space, with a group called the Alliance for American Manufacturing (AAM) generally representing the left-of-center, pro-union side. And while their main goal seems to be increasing the coffers of Big Labor, luckily most workers still have free will – ask the employees at the Tennessee Volkswagen plant about how much effort from the UAW can be rebuffed in a simple up-or-down vote.

Currency manipulation is one area in which the AAM has been focusing. A study they cite, by the liberal Economic Policy Institute (EPI), makes the case that:

Many of the new jobs (if the subject is addressed) would be in manufacturing, a sector devastated by rising trade deficits over the past 15 years. Rising trade deficits are to blame for most of the 5.7 million U.S. manufacturing jobs (nearly a third of manufacturing employment) lost since April 1998. Although half a million manufacturing jobs have been added since 2009, a full manufacturing recovery requires greatly increasing exports, which support domestic job creation, relative to imports, which eliminate domestic jobs.

Personally I disagree with the premise that rising trade deficits can be blamed for the job losses; instead, I think an absurdly high corporate tax rate and onerous regulations have contributed more to chasing away American manufacturing. (While many simply blame “outsourcing” for the problem, fewer understand the dynamics which led to the outsourcing.) Yet there is merit to the idea that all sides should be competing on as level of a playing field as possible when it comes to the means of exchange, and China is one of the worst offenders. (And why not? They are communists, after all, and you can’t trust communists any farther than you can throw them.)

Two of EPI’s findings are quite interesting: first, should the EPI model come to its fruition, the oil and gas industry would be the hardest hit, and second, Maryland would be among the states least impacted, with barely a 1% rise in employment.

Yet AAM president Scott Paul is quick to blame Barack Obama:

President Obama promised to hold China accountable. He hasn’t. The White House last month said President Obama would use his pen and his phone to make progress on economic issues. He could start today by signing an order to designate China as a currency manipulator.  Then, he could call the Chinese leadership to demand an end to that practice, and secure an agreement on a plan to cut this deficit in half over the next three years.

I sort of wish Mr. Paul would also figure out the other problems, but he is correct to be concerned about our Chinese policy. Job creation has become more important than deficit reduction in the minds of Americans, both in the AAM poll I cited above and a Pew Research Poll cited by the American Petroleum Institute (API).

And the industry which benefits from API’s efforts represents another piece of the puzzle which we can take advantage of: our abundant energy supplies. While America uses 26 trillion cubic feet of natural gas per year, there is the possibility of as much as 10,000 trillion cubic feet within our land mass. That’s nearly 4 centuries worth, so I don’t think we will run out anytime soon. (Estimates have continued on an upward path as new technology makes previously unworkable plays economically viable.) As I keep saying, it’s too bad we don’t have a nice shale play under our little sandbar. Not only that, but the infrastructure we will need to take advantage of all that (and help curtail spot shortages like the ones we’re having this chilly winter) would be a guaranteed job creator – one which derives its basis from the private sector. New pipelines aren’t just for export facilities like Cove Point, but could benefit this area and perhaps bring more natural gas service to our region.

Unfortunately, Maryland isn’t poised to take advatange of either the manufacturing or energy booms at present, thanks to back-breaking economic policy and a foolhardy go-slow approach on fracking. It takes a strident opponent of the latter to suggest yet another approach which will do damage to the former, but gubernatorial candidate Heather Mizeur accomplishes this with the tired old combined reporting proposal. Hers comes with a twist, though, which she announced last Monday:

In the morning, Mizeur will host several Maryland business owners for a Small Business Roundtable. They will discuss her legislation to provide tax relief to small business owners, as well as other highlights from the campaign’s ten-point plan for jobs and the economy, which was released last fall. She will also hear from the business owners on a range of other concerns.

(snip)

At 1:00 pm, several business owners will join Mizeur in front of Ways and Means to testify on behalf of legislation that would enact combined reporting and distribute the estimated $197 million to small businesses for personal property tax rebates.

It’s the liberal way of picking winners and losers. And according to a 2008 study by the Council on State Taxation – admittedly, an opponent of the practice:

Combined reporting has uncertain effects on a state’s revenues, making it very difficult to predict the revenue effect of adopting combined reporting.

Even proponents don’t address that aspect, instead emphasizing how it would “level the playing field between multistate corporations and locally based companies.” But since Mizeur’s idea is one which would subsidize some businesses under a certain employment plateau, the uncertainty would likely be just another reason to avoid Maryland.

On the other hand, a Republican like Larry Hogan at least gets businesses together to discuss what they really want. Granted, once he gets them together he speaks in broad concepts rather than a more specific plan, but at least he’s listening to the right people. None of the others in the GOP field have specific plans, either, although Ron George probably comes the closest.

One has to ask what states which are succeeding economically are doing to attract new business. The state with the lowest unemployment rate, North Dakota, is prospering – more like crushing the rest of the field – on account of abundant energy resources, and perhaps that success is pulling surrounding states up with it. Its three neighbors (Montana, South Dakota, and Minnesota) all rest within the top 13 when it comes to low unemployment rates and other regional states like second-place Nebraska, Iowa, Wyoming, and Kansas lie within the top 10. Although the top five are right-to-work states, half the bottom 10 are as well. Nor can tax climate be seen as a dominating factor since the top 10 in unemployment vary widely in that category: Wyoming, South Dakota, Utah, and Montana are indeed excellent in that aspect, but North Dakota is decidedly more pedestrian and Iowa, Vermont, and Minnesota are among the worst.

But Maryland has the tendency to depend too much on the federal government as an economic driver. This presents a problem because bureaucrats don’t really produce anything – they skim off the top of others’ labor but don’t add value. Certainly it’s great for those who live around the Beltway, and it’s telling that all three of the Democratic candidates have a connection to the two Maryland counties which border the District of Columbia while none of the Republicans save Larry Hogan do.

In order to create jobs, I think the state needs to diversify its economy, weaning itself off the government teat and encouraging manufacturing and energy exploration. Meanwhile, there’s also a need to rightsize regulation and restore a balance between development and Chesapeake Bay cleanup – specifically by placing a five-year moratorium on new environmental restrictions while cleaning up the sediment behind the Conowingo Dam. Let’s give that which we’ve already done a chance to work and other states a chance to catch up.

The best route out of government dependence is a job. Unfortunately, when the aim of the dominant political party in the state is one of creating as many dependents as possible, a lot of good entrepreneurs will be shown the door. It’s time to welcome them in with open arms.

The real unemployment number

Forgive me if I don’t make sense today. I’m going to take a bucket of water and pour in a few drops at the top. Let’s call that job creation. What I’m going to gloss over is the gaping hole near the bottom where water is gushing out. Some skeptics might call that people leaving the labor force, but the shiny objects are those droplets of water and the trickle from last month we found was larger than we thought. So the bucket seems really full.

For the first time since 2008, the “topline” unemployment number is under 7 percent, as it was announced today that the rate dropped to 6.7 percent. But experts were “hard pressed” to explain why so few jobs were created.

The problem was summed up by someone who’s not an economist, but a frequent critic of the current regime. Nathan Mehrens of Americans for Limited Government noted:

Since Obama became president, the number of people who are considered to be in the civilian job eligible population has increased by just shy of eleven million people, but the number of people who have entered the work force has only increased by about 730 thousand people.  Quite simply our nation cannot survive when fewer than sixty six out a thousand working aged people are entering the workforce.  Of those sixty six who want a job, about five of them are unemployed.

I’ll grant that the Mehrens example is perhaps a little overblown, as more of those who would be considered job eligible also become eligible for Social Security and/or reached retirement age. There are also a growing number who claim disability, which is why the seasonably adjusted number for those not in the work force has peaked at 91.8 million while the labor participation rate slid back under 63 percent. They’ve talked for years about the fact that a shrinking number of workers contribute to Social Security while those who collect live longer; well, we’re now practically at a point where five workers support three who aren’t working. Nor do these raw numbers consider how many jobs are in the public sector vs. private sector work, so the ratio is just about to a point where one private-sector worker is supporting one of either the roughly 22 million public-sector workers or the nearly 92 million non-workers.

Bottom line: the system trend is unsustainable, So what is the solution being offered by the government? Barack Obama calls them “Promise Zones” and they are supposed to “cut through red tape.” But it looks to me like more of the same:

(Yesterday), in the East Room of the White House, the President will announce the first five “Promise Zones”, located in San Antonio, Philadelphia, Los Angeles, Southeastern Kentucky, and the Choctaw Nation of Oklahoma.

These areas – urban, rural, and tribal – have all committed, in partnership with local business and community leaders, to use existing resources on proven strategies, and make new investments that reward hard work. They have developed strong plans to create jobs, provide quality, affordable housing and expand educational opportunity, which we’ll help them execute with access to on-the-ground federal partners, resources, and grant preferences.

“Make new investments” is codespeak for spending more money on the problem, and Democrats just love to utter that “investment” term. That makes sense when the vast majority of the proposed solution lies in more federal involvement. (There is a small component involving tax credits, but those are generally temporary and don’t cover all of the increased costs involved in locating in these areas.)

So the one-to-one ratio will probably continue, particularly since the first five mainly involve some sort of educational component. Of course, that won’t be done through private-sector means.

Has anyone thought to ask those who create jobs what gives them an incentive to do so? Certainly tax credits may help, but as I noted above those are of a fleeting nature. Unfortunately, it seems that government regulation is forever; well, at least until business learns to live with that which is in place – only then do the bureaucrats seem to change things for the worse. One study pegged the net cost of government regulation in 2013 at $112 billion; using that as a guide business spent that sum complying with regulations instead of creating 2.24 million jobs at $50,000 apiece. That would knock nearly one-fourth off the unemployment rate, putting it back to around the 5% “normal” the media regularly lambasted as a “jobless economy” during the George W. Bush years.

It seems like politicians pay lip service to the concept of business friendliness during election years because they know the voting public really, truly wants to work and advance their economic status. (I know I do.) Yet the results of the last half-dozen years or so have been those of government projecting more of its influence over the private sector when the reins should be slackened instead. In no way has the world reached a terminal point of satisfaction with its collective lot, so there’s much room for growth in the American private sector given the advantages our nation has in terms of natural resources and willing workforce.

So let my job-producing people go, and we can return to the full employment we enjoyed just a few short years ago.

The 38B battle is joined

After the 2010 election, where Norm Conway barely carried the Worcester County portion of his former district by 311 votes over Mike McDermott  – and just 665 over third place finisher Marty Pusey – I’m sure statewide Democrats didn’t want to take a chance on an upset in 2014 given Worcester County’s trend toward the Republican Party. So they drew him into a single-member district which mostly held onto the far western end of his existing territory here in Wicomico County but also gave him some new voters close by Salisbury University, knowing that this part of his old district was perhaps the area which backed Norm the strongest.

It took awhile for a local Republican to answer the challenge, but Delmar mayor Carl Anderton, Jr. wrapped up the process of filing yesterday and is now on the June 24 primary ballot. Anderton, who is also the current president of the Maryland Municipal League, seems to be the young, energetic challenger Republicans were looking for once the district was drawn. Conway, who will be 72 in January as the General Assembly session begins, has spent over half his life as an elected official – he was first voted onto Salisbury City Council in 1974, moving to the General Assembly in 1986. (Interestingly enough, according to his official state bio, Conway was also a Maryland Municipal League officer, but only as a regional vice-president.)

Anderton has served as Delmar’s mayor since 2011, replacing longtime mayoral fixture Doug Niblett.

The candidacy of Anderton serves as a reminder why it’s so important to have a political “farm team” in place. While it may seem like a mismatch in terms of political experience, one has to really ask what having an entrenched, longtime politician has really done for a county which has seen its workforce shrink by nearly 2,000 in one year (July 2012 – July 2013) and a net loss of 1,573 jobs during that same period.* The only reason unemployment fell from 8.5% to 8.3% was the bottom falling out of the workforce – otherwise unemployment would be well over 10 percent. If that’s the mark of a successful chair of the House Appropriations Committee I’m afraid to know what failure would be like.

It will be interesting to see the platform Anderton develops, but one thing is clear: the incumbent is going to point to a few key votes where he was allowed to depart from the Annapolis majority in order to save face in his district. Ask yourself: where was his leadership against all these issues in the first place?

_________________________________

* Here are the actual numbers:

July 2012: 54,801 in workforce, 50,161 employed, 4,640 unemployed, 8.5% unemployment rate
July 2013: 52,964 in workforce, 48,588 employed, 4.376 unemployed, 8.3% unemployment rate

Layoffs in state resume disturbing trend

An identical article with photo is published at Examiner.com. Normally I split the text but there was no good breaking point in this post.

While we haven’t returned to the mass layoffs of a decade ago, it appears the trend in Maryland is going back in the wrong direction according to statistics compiled by the state’s Department of Labor, Licensing, and Regulation.

Federal law dictates states keep a running log of what they term Work Adjustment and Retraining Notification, or WARN for short. So far in 2012 these job losses are approaching a three-year high with still a quarter to go. By way of comparison, I compiled through WARN statistics (which are available through the state back to calendar year 2000) the total number of jobs lost via these mass layoffs each year since:

  • 2000: 7,573
  • 2001: 10,041
  • 2002: 8,352
  • 2003: 11,123
  • 2004: 5,120
  • 2005: 7,445
  • 2006: 4,847
  • 2007: 4,586
  • 2008: 4,384
  • 2009: 6,170
  • 2010: 5,675
  • 2011: 5,611
  • 2012 (through September 13): 6,134

In short, we may suffer our worst such year in nearly a decade if the pace continues over the remainder of the year. Right now the two biggest layoffs – accounting for almost half this year’s total – are the Unilever plant in Hagerstown and the RG Steel plant at Sparrows Point.

Over the years, steelmaking and other manufacturing jobs have steadily left the state while retailers have contributed their share to the toll. Key losses over the years have come from US Airways, the shutdown of chain retailers like Montgomery Ward in 2001, Ames in 2002, and Super Fresh last year, WorldCom in 2002, Black & Decker and Bethlehem Steel in 2003, Baltimore’s GM plant in 2005, and Severstal in 2010. Sparrows Point in particular has been hard hit by losses.

And looming in the near-term are prospects of sequester-related job losses from Maryland-based companies, since we have 2.5 times the national 2.2% average of federal workers as a share of the overall workforce. It’s quite possible we could match or exceed the all-time record by year’s end, even if the layoffs are only temporary.

But the question isn’t so much why these layoffs and closures are happening, since this is common in an economy such as ours – after all, some of the worst years have come in periods where the overall economy was humming right along. The question is what can be done about it.

We have heard on many occasions that Maryland is a job creation pit – the group Change Maryland has picked up thousands of Facebook followers and made Larry Hogan a person in political demand simply by pointing this out. Unfortunately, we are saddled with our failed Annapolis leadership until 2014.

Thus it’s going to be up to localities to be smart about job creation, particularly ones which have been hardest hit by the exodus in jobs. Salisbury is no stranger to the WARN list; we lost a Super Fresh last year but many more recall the demise of Crown Cork and Seal, the Dresser plant, or United Stationers.

But we’ve also seen some job creation in these very locations: Crown is now an indoor sports facility, for example. Another instance of a shuttered facility getting new life is the old Reddy Ice plant, now home of Evolution Brewery. The brewers wanted the site because it has a well and access to clean, pure water – the better to make beer by. Both have found a niche in a market they can take advantage of despite the headwinds created by the state.

Still, it wouldn’t hurt to get the state out of the way. If, as some speculate, the economy suddenly blossoms once again because Mitt Romney wins the election and brings back a Republican-led Congress, we need to make sure Maryland gets in on the fun.

Odds and ends number 59

You know them, you love them…bloggy bits of goodness I expound upon which run from a sentence to a few paragraphs. Here’s my latest batch from a chock-full mailbox all but neglected over the weekend.

Actually, the first item doesn’t come from my mailbox but was shared with me on my Facebook page by Jim Rutledge, who urged me to read and share this piece by Diana West about how we’ll never win if we kowtow to Islamic radicals.

West writes about the saga of Marine Lance Cpl. Greg Buckley, Jr., who was killed in a “green-on-blue” attack last month. Chillingly, Buckley predicted, “one day they are going turn around and turn those weapons on us.” And so they did.

Of course, that leads to the obvious question of why we remain in Afghanistan, which has no clear-cut answer. At this point, it truly makes no difference to the most radical Islamist whether we stay or go as we’re the Great Satan just the same. Right offhand, I have no idea what the body count is on their side, but I’m sure it could be a lot more if we didn’t pull our punches. Once we bombed Tora Bora back to the Stone Age to get Osama bin Laden, but it was a more precise Seal Team Six which sent bin Laden to those 72 virgins, with Obama trying to heist the credit. Certainly there are those Afghans who love the accolades they receive from their comrades when an American is cut down as well.

All in all, the Patton rule still applies: “The object of war is not to die for your country but to make the other bastard die for his.” Just substitute “religion” for “country” on their part.

Another old saw from the Left is that not throwing money at education produces inferior results. But that theory is debunked by a study recently released by State Budget Solutions. If the liberals’  theory was correct, then states which spent the most per pupil would have the best results – but the numbers suggest otherwise. In announcing the results, SBS noted:

From 2009 to 2011 the national average for state educational spending as a percentage of total spending dropped from 30 percent in 2009 to 29.3 percent in 2011. The top state spenders across all three years were Texas, Vermont and Arkansas, all spending at least 4 percent more than the national average. Michigan made the top five in 2010 and 2011. Virginia earned the #4 and #5 position in 2009 and 2011, respectively.

The states that spent the least as a percentage of total spending during 2009-2011 were Alaska, which came in last all three years, Hawaii and Tennessee. New York and Massachusetts also made the bottom five in 2010 and 2011.

For states that spent the most, only Vermont saw significant results from 2009 to 2011.  In fact, four out of the five states spending the most on education failed to produce correspondingly high graduation rates or ACT scores. Arkansas remained in the top five states in spending for all three years, yet Arkansas’ average ACT scores consistently fell below the national average, and continue to decline annually. In 2010 and 2011, Texas ranked first in the nation in spending, 36.9 percent each year, but fell below the national average in graduation and ACT scores.

One can have whatever educational Taj Mahal the taxpayers willingly – or begrudgingly – pay for, and teachers who receive the highest pay around, but if they can’t teach then all the money is essentially wasted. Otherwise, why would bright homeschooled children be the academic leaders of this country?

At this time in the election cycle, endorsements are always news. Recently the Conservative Victory PAC added two new Republican hopefuls to a growing stable of CVPAC-backed candidates as Second District Congressional hopeful Nancy Jacobs and Third District candidate Eric Knowles got the CVPAC blessing.

On Jacobs the group wrote:

CVPAC supports Ms. Jacobs’s education reform agenda, including expansion of Charter Schools in failing school districts, means-tested tax credits for parents with children in religious schools and other private schools, and tax credits for Maryland businesses that invest in schools or hire graduates from local schools.

CVPAC Treasurer Ruth Melson had this to say about Knowles:

Let me tell you why Eric Knowles must be your next United States Congressman from Maryland District 3.  Eric knows about defending the United States Constitution against foreign enemies and he will defend it at home the same way; he is a US Air Force veteran.   He knows about our terrible economic plight; he works as a bartender talking to regular folks every day.  In the United States Congress, he will always represent the interest of Marylanders like you and me.  He is not an ivory-tower politician building castles in the air; he is pragmatic.  Government, he says, must stay within its constitutionally enumerated powers; government must be rolled back to what we can afford.

Along with U.S. Senate candidate Dan Bongino, the Conservative Victory PAC has endorsed four of Maryland’s six Republican Congressional challengers: Ken Timmerman, Faith Loudon, Jacobs, and Knowles. I suppose they have a few weeks to add Fifth District challenger Tony O’Donnell and Seventh District aspirant Frank Mirabile to the list.

Bongino, meanwhile, keeps adding to his national profile by getting key endorsements of his own; most recently Lt. Col. Allen West added his vocal support:

The differences cannot be any clearer in the race for United States Senate. Ben Cardin has been an elected official for 45 years and you need to question ‘Is Maryland better off than it was in 1967?’ It is time the people need to elect someone who has some real experience, and that is why I am endorsing Dan Bongino for U.S. Senator for Maryland.

We need someone who has walked a police beat and not someone who all he knows how to do is walk into a chamber and vote aye and nay all day long!

West is a conservative darling who some believed would have been a great VP pick.

On the other hand, “establishment” Republicans may have been enamored with an endorsement closer to home – former Governor Bob Ehrlich:

Dan has the unmatched integrity and unique depth of experience necessary to defeat an entrenched incumbent like Senator Cardin. His background in law enforcement and federal investigations, combined with an entrepreneurial spirit and business acumen, afford not only a broad overview of the political arena but also personal expertise in job creation, fiscal responsibility, and community involvement.

We cannot continue down the same non-productive road we’ve traveled for the last 45 years. It’s time we elect someone new – someone who can relate to the needs of the average Maryland family. Dan’s message resonates strongly with both Democrats and Republicans alike, and he is the right person at the right time to represent Maryland and shake things up in Washington.

Gee, Bob, that sounds a little bit like your 2010 primary opponent I voted for. While it’s nice to have the endorsement, honestly I’m not sure the Ehrlich name carries the cache it formerly did among rank-and-file Republicans, let alone those who call the TEA Party home. They were more enthused by the Allen West statement, I’m sure.

Speaking of those who have spanked Ehrlich electorally, Martin O’Malley is once again getting beclowned by Larry Hogan and Change Maryland as they point out Maryland’s unemployment rate is rising as the national percentage drops:

Maryland’s unemployment rate inched up to 7.1%, marking months of consecutive upticks since January’s rate of 6.5%,  in the latest state employment picture released today by the Bureau of Labor Statistics.

The preliminary August numbers show a slight gain in employment due to July numbers that were revised downward by 1,600 jobs.  In August, Maryland payrolls increased by 1,400 over July.

The slight change in employment numbers, however, is not enough to lift Maryland out of the doldrums when it comes to competing with neighboring states.

“We are lagging in job growth in the region and are simply not competing with our neighbors,” said Change Maryland Chairman Larry Hogan. “This year’s performance on job growth is abysmal as it has been since 2007.”

On a percentage basis of jobs lost, Maryland’s decline of 1.4% since January of 2007 is the second-worst in the region after Delaware.

And Change Maryland had even more fun at O’Malley’s expense, reminding its audience that each and every Republican governor berated by DGA head O’Malley scored higher on job creation than he did:

In recent remarks in Iowa, O’Malley said, “We are the party that grows our economy; they are the party that wrecked our economy.’ This false statement is borne out today in the latest August employment numbers released by the Bureau of Labor Statistics that show Maryland’s loss of nearly 7,000 jobs this year is worse than Florida, Ohio, Louisiana, Wisconsin, Virginia, Texas, New Jersey and Maine. In some cases it is much worse.  For example, under Gov. John Kasich, Ohio has created 68,300 jobs this year; Florida Gov. Rick Scott, 50,500 jobs; and New Jersey Gov. Chris Christie, 26,200 jobs. So far this year under Gov. Rick Perry, the Lone Star state has created 140,000 more jobs than Maryland, which some have dubbed the “Fee State” as opposed to the official “Free State.”

“Martin O’Malley has no credibility whatsoever talking about jobs,” said Change Maryland Chairman Larry Hogan.  “What he can talk about, but chooses not to, are the 24 taxes and fees he has raised since taking office which remove $2.4 billion annually from the pockets of struggling Marylanders.”

I know Jim Pettit doesn’t necessarily write these releases to be laugh-out-loud funny, but when you consider the material he has to work with, you have to laugh to avoid crying – particularly if you still live in Maryland. As I’ve put myself on the record saying, take away the nation’s capital and Maryland is Michigan without all the lakes – or the jobs. (By the way, even that state is creating jobs much faster than Maryland.)

A surefire way to curtail job creation, however, is to overregulate land use to a point where no growth is possible. Whether consciously or not, the effect of new state rules may be the eventual death knell to the Eastern Shore’s economy.

There is an upcoming “Growth Offset Policy Meeting” Thursday morning to discuss these proposals, dryly described as follows:

The meeting will include a presentation by staff from Maryland Department of the Environment about the draft Growth Offset policy and the proposed timeframe for acceptance and implementation of the policy. Following the presentation, the remainder of the meeting is dedicated for a question and answer period. Participants are invited to ask questions and express concerns to staff from Maryland Department of the Environment, Department of Agriculture, and Department of Planning.

The Harry R. Hughes Center for Agro-Ecology is organizing this event and would like to thank the Town Creek Foundaiton (sic) for their generous support which allows the Center this opportunity.

You can register here; it’s no surprise that plenty of seats are still available. I’m sure the Radical Green in this area will take time off their public-sector, taxpayer-funded jobs to try and convince these people that every acre in Wicomico County not already developed needs to return to its pristine, pre-settlement state.

If we were to take a path, I say join the one being blazed by Cecil County and say “to hell with the maps.” If Rick Pollitt wants to do something useful for a change, this is something to consider when you think about how similar Cecil County is in population to Wicomico.

Finally, turning to the national race: there’s a constituency group out there which is always assumed to be a solidly Democratic bloc and that’s the Jewish vote. But according to this ad from the Republican Jewish Coalition, voters are turning away:

Perhaps borne out by this ad, a survey by the American Jewish Council of 254 registered Jewish voters in Florida showed only 69% would vote for Obama. It’s noteworthy the survey was conducted prior to the 9-11-12 Islamic attacks on our embassies in several Middle Eastern countries, most notably Libya. On the other hand, they didn’t ask about the respondents’ 2008 vote so in that respect the survey has limited value – we have no basis of comparison to truly determine a trend.

But another number from the AJC survey serves as a way to tie this post together: 62% of those Jewish voters surveyed either strongly or moderately support U.S. military action against Iran’s nuclear program. 74% of them would support Israel doing the same.

It all comes back to wars and rumors of wars, doesn’t it?

More depressing Maryland employment news

The bad month for Governor Martin O’Malley continues, with his new nemesis Change Maryland at the forefront once again. They did the research and determined that Maryland’s anemic employment gains were, in fact, no gains at all over the first six months of 2012 – as it turned out the Free State lost more jobs than any other state. Bureau of Labor Statistics data from the watchdog group indicates around 10,300 jobs were lost by Maryland during this time frame; indeed, that’s more than any other state.

And the news gets worse if you expand the period of study backward – only Pennsylvania has lost more jobs in this region than Maryland, and it’s a larger state.

So far Governor Martin O’Malley has been mum on this data – as opposed to previous releases by the group, where an O’Malley mouthpiece tried his best at obfuscation – but Change Maryland head Larry Hogan seems to be burnishing his gubernatorial credentials by pointing these dismal employment numbers out, stating in the accompanying release:

Governor O’Malley says repeatedly that Maryland has fared better than other states during the recession. He should be talking about our state’s performance relative to others in this region, not compared to Michigan or Nevada.  Once again he is cherry picking data in an attempt to fool people.

As someone who has lost his job during the time period in question, I think Hogan may be on to something when he talks about the frequent tax increases and lack of spending discipline being an issue in the state.

Apparently Nancy Jacobs does too, as the State Senator and Second District Congressional challenger talked about job losses in her region during her opponent’s recent Congressional tenure:

News of layoffs has been especially bad in Congressional District 2 where I am the Republican nominee for Congress. On Friday two more Baltimore County companies announced layoffs.  At Siemens in Dundalk, 38 jobs are being cut.  Bank of America in Hunt Valley reports it will cut 55 employees in Hunt Valley. Eastern Baltimore County was especially hard it by the loss of 2000 jobs at RG Steel in Sparrows Point Plant earlier this month.  We must ask what Dutch Ruppersberger what is he doing in Washington to address this issue so critical to his constituents!

Well, the truth of the matter is that doing something in Washington is the wrong approach – the better question to me is what Nancy Jacobs will undo in Washington. One who uses the slogan “Vote Jobs – Vote Jacobs” may be well-served to show what she can do. Luckily she does have a record:

Maryland Business for Responsive Government gives me a 100 percent ranking when it comes to my votes that improve business and create jobs.

But I wanted to get back to that raw data. Thanks to Jim Pettit, who forwarded me the data, I looked at all the states which lost jobs – here’s the list, in alphabetical order:

  • Kansas lost 7,800 jobs.
  • Maine lost 4,300 jobs.
  • Maryland lost 10,300 jobs.
  • Mississippi lost 4,100 jobs.
  • Missouri lost 7,700 jobs.
  • Nevada lost 400 jobs.
  • New Hampshire lost 3,700 jobs.
  • New Mexico lost 4,400 jobs.
  • Rhode Island lost 800 jobs.
  • Tennessee lost 4,200 jobs.
  • West Virginia lost 6,800 jobs.
  • Wisconsin lost 2,100 jobs.

So it’s true that in raw numbers Maryland performed the worst. But there is a proviso which Martin O’Malley may be able to hang his hat on just a little bit. These are job losses expressed as a percentage of the workforce for these states:

  • Kansas, 0.58%
  • Maine, 0.72%
  • Maryland, 0.40%
  • Mississippi, 0.38%
  • Missouri, 0.29%
  • Nevada, 0.04%
  • New Hampshire, 0.59%
  • New Mexico, 0.55%
  • Rhode Island, 0.17%
  • Tennessee, 0.16%
  • West Virginia, 0.89%
  • Wisconsin, 0.08%

Measured this way there are five states which did worse than Maryland: Kansas, Maine, New Hampshire, New Mexico, and West Virginia. So now we’re #46 instead of #51…woohoo!

But the other chart Change Maryland bases its assertions on compares Maryland to a peer group of surrounding states and Washington D.C. and tabulates the total employment figures from January, 2007 through last month. This time I will do both the total jobs gained or lost and percentage, along with peak and trough months:

  • Maryland, a net 39,900 jobs lost (-1.53%) – peak February 2008, trough February 2010.
  • Virginia, a net 32,100 jobs lost (-0.85%) – peak February 2008, trough February 2010.
  • Delaware, a net 20,000 jobs lost (-4.55%) – peak February 2008, trough February 2010.
  • Pennsylvania, a net 58,800 jobs lost (-1.02%) – peak April 2008, trough February 2010.
  • West Virginia, a net 600 jobs gained (+0.08%) – peak September 2008, trough February 2010.
  • District of Columbia, a net 46,200 jobs gained (+6.69%) – peak April 2012, trough June 2007.

Out of these states, only Delaware has fared worse in terms of a percentage of jobs lost. It’s also very telling that early 2008 was peak employment for most areas – except Washington, D.C. And while the others hit bottom in February 2010, the District – while in a bit of a lull – was still well above its pre-Obama low point.

So maybe the problem is in Washington, because these jobs are the fool’s gold of the economy – pencil pushers who add no real value.

And while the Change Maryland group is securing sensational headlines a little bit beyond the true scope of the revelations, the news is still quite bad for Martin O’Malley. As he tours the country on his perceived 2016 Presidential run, MOM’s failing to notice the vast majority of states are creating jobs despite his party’s best efforts. How long this can go on may depend on who is elected this fall.

Maryland keeps leading the way – in losing jobs

Another dismal unemployment report continued a bad month for Governor Martin O’Malley as he tries to regain his early momentum for a probable 2016 Presidential run. Unfortunately for both the governor and those who were more directly affected, Department of Labor estimates peg 11,000 as the number of jobs lost by Marylanders in June, although the DOL also revised the number in Maryland who lost jobs in May downward from 7,500 to 2,900, according to Jamie Smith Hopkins at the Baltimore Sun. The state’s topline unemployment rate ratcheted upward to 6.9 percent, although Hopkins was careful to add this was still below the national average. Obviously that’s cold comfort to those whose personal unemployment number reached 100 percent.

While the GOP is sympathetic to the plight of these newly jobless, they are also using this new data to point out the ineffectiveness of the state’s Democratic majority to address the problem. For example, O’Malley’s favorite new whipping boy and subject of “juvenile attacks” Larry Hogan of Change Maryland commented:

Something isn’t working here. Now would be an excellent time to re-evaluate our tax-and-spend approach to governing and start developing policies that increase private sector job growth.  It’s unacceptable to have increases in the unemployment rate month after month.

Fellow gubernatorial hopeful and Harford County Executive David Craig chimed in:

While the state of Maryland has raised taxes, our debt has also increased.  This is a dangerous formula and it is the wrong direction for our great state.

Added U.S. Senate candidate Dan Bongino – a man of succinct words:

Absolutely inexcusable. The time for real change is now.

Yet there are those on the Left who seem to think this isn’t such a big deal. One is House Democratic Whip Steny Hoyer, a Washington insider who believes that economists think food stamps and unemployment insurance are two of the “most stimulative (things) that you can do,” as quoted in CNS News. Hoyer goes on:

Why is that? Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.

Well, of course that’s not the case for those with “significant discretionary income” because they either have steady jobs which give them a paycheck every week or two or they are successful business owners. Congressman Hoyer, those are the people who create jobs, so why “reward” them with higher taxes? That’s what Maryland does on a state level and we’ve seen the results.

If anything is plain to see regarding our economic situation, it’s that people need jobs. There’s an honest difference in political philosophy between that expressed in President Obama’s “If you’ve got a business – you didn’t build that. Somebody else made that happen” speech in Roanoke, Virginia; an approach which presupposes government needs to step in to “spread the wealth around” in the name of fairness, versus one where job creation is encouraged by allowing employers more freedom to keep their own capital and invest in ways they see fit, like expanding their workforce, building or securing new facilities, and raising the wages of deserving employees as a means of profit sharing. (And yes, I understand there are some business owners who keep the profit for themselves.) But you can’t share a profit if none is to be made.

My adopted home state has a number of assets: good location in relation to markets, a well-educated workforce, and the advantage of having the seat of federal government nearby. But so does Virginia, and we see them gaining jobs at Maryland’s expense. As a third gubernatorial candidate, Frederick County Commissioner Blaine Young, states on his 2014 campaign website:

(N)orthern Virginia just doesn’t talk the talk about being business friendly, they walk the walk.

Sometimes it seems like those in Annapolis just assume that Montgomery County will continue to pay the state’s bills in much the same way that heavy manufacturing and industry in and around Baltimore did a half-century ago, a time when the land which now consists of newer Montgomery and Prince George’s County developments was still cropland and forest. But that golden goose of government may stop laying its eggs, as the brain drain shown by the Change Maryland study could evolve from a trickle to a torrent if reforms aren’t conducted.

Part of the advantage of the American system is that those who don’t like something about a particular state or locality have the freedom to move to a place they feel is more advantageous to their interests. But what that says about a place productive people leave in droves is that something is desperately wrong; revisions need to be made and lessons learned. Maryland isn’t quite the East Coast version of California yet, but we’re working on it and making a course correction should be priority one for 2014.

Moving forward in the wrong direction

When Governor O’Malley formally called the recently-completed Special Session back on May 3rd, he did so because there was “too much at stake not to move forward.” Unfortunately, after passing $260 million of tax increases and shifting the state’s teacher pension burden to its counties, it doesn’t appear Maryland workers will be able to respond accordingly. In fact, 6,000 fewer Maryland workers were contributing to the economy at the end of April than at the beginning, according to Labor Department figures released today – a statewide job loss which was the highest in the nation. Moreover, the March numbers were readjusted in a manner which gave the state a net job loss in that month, too.

(continued at Examiner.com…)

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Where will they find work?

Last night – when I actually wrote this thanks to the magical ability to prewrite posts for this website – something reminded me of a short discussion I had with a customer at one of the stores I worked at this week. She brought up a point I hadn’t thought about. I will, however, cheerfully admit I don’t know the protocol about military enlistment so I’m not sure at which point the problem will occur.

The gist of what she said is that I was working pretty hard at the task I was doing, but I should be glad I have the job. She then pondered out loud what the soldiers coming back from Iraq will do for jobs now that they’re being pulled out.

Continue reading “Where will they find work?”

The debt ceiling, locally

Gee, that Jim Messina from the Barack Obama recoronation campaign – always telling me what to do. Now he wants me to call Andy Harris:

The President spoke last night about the need for Congress to come together to meet our financial obligations by raising the so-called “debt ceiling” — that is, to make sure our country can pay the bills Congress has already racked up.

You’d think this would be fairly straightforward. For many years, regardless of party affiliation, presidents have asked Congress to do this when it’s been necessary — and every time, Congress has acted. Just as an example, Congress granted Ronald Reagan’s request to raise the debt ceiling 18 different times.

Here’s what’s happening: President Obama proposed the balanced approach of raising the debt ceiling paired with responsible steps to reduce our country’s long-term debt — asking oil companies, corporations, and the richest Americans to do their part rather than placing the entire burden on seniors and the middle class.

A deal has been close at times, but an ideological faction of House Republicans has been effectively holding our economy hostage — making extreme demands like ending Medicare as we know it, gutting Social Security, and rejecting any compromises that might make millionaires or big corporations pay their fair share to get our debt under control.

So last night, President Obama spoke to the nation and made a suggestion to everyone watching: Call Congress and ask them to do their job. Since then, there have been reports that the flood of calls and emails has been slowing down the phone systems and websites on Capitol Hill. But keep trying until you get through — they need to hear from you.

Well, I don’t have to call Andy to find out what he thinks – he already let me know, in no uncertain terms:

“By an overwhelming amount, Maryland families and businesses have contacted me to demand that the federal government get its fiscal house in order, stop spending more than it takes in, and balance the budget,” said Rep. Andy Harris. ” I disagree with the President – we need a balanced budget amendment, and I won’t vote to raise the debt ceiling unless a balanced budget amendment is part of the deal.  To create jobs in America again, we must stop the spending spree in Washington.”

Let’s return to Messina’s statement, which presumably is President Obama’s viewpoint.

First of all, he blames the legislative branch for “bills Congress has already racked up.” One problem with saying that is that we haven’t had a budget passed in 2 1/2 years because the Democrats decided not to do their duty when they ran the show in Congress. Yet Democrats passed budget-busting bills like the so-called stimulus and Obamacare. If the Pelosi/Reid Congress had simply maintained spending at the already generous 2007 levels they proposed, we wouldn’t be having this argument. Keep that in mind as I continue.

Of course, Obama has to bring Ronald Reagan into this by referring to raising the debt limit 18 times. Well, there he goes again. Remember who ran Congress and created the budget during those years? Yep, Democrats who were only too happy to vote for tax cuts but balked at cutting their precious social programs. I still remember how Reagan’s budget proposals were classified as “D.O.A.” every year.

More importantly, look at the phrase “asking oil companies, corporations, and the richest Americans to do their part.” There’s not going to be any “asking” about it if Obama gets his way – he’s just going to gouge their bottom line some more through higher taxation. I’ll bet he’ll be wondering why unemployment continues to go up. Sorry, that class envy card isn’t accepted here – not when the top 1% of wage-earners already pay more in tax than the bottom 95 percent.

So you can scratch the part about “extreme demands like ending Medicare as we know it, gutting Social Security, and rejecting any compromises that might make millionaires or big corporations pay their fair share,” since we shouldn’t fall for Mediscare or naively believe Social Security is healthy. (I already covered the “fair share” part in the last paragraph.) Instead, we should end Medicare as we know it and work to sunset Social Security because the government doesn’t belong in either health care or retirement. (Obviously those tasks have to be done over a number of decades, but the best time to start is now!)

I suppose my message is clear: go pound sand, President Obama.

Now as for Congressman Harris, my only quibble is that he shouldn’t vote to raise the debt ceiling whether there’s a balanced budget amendment with it or not. Make President Obama take the blame for any cuts he’d have to make, since he’s already hinting that seniors and the military will get it. You already have passed a plan, so there’s no need to make any other concessions until you see his proposal.

So if I’m going to call Congressman Harris’s office, it’s going to be with the message that there should be no increase in the debt ceiling and no compromise. Obama and the Democrats made their bed, let them lie in it.