09/22/2008
Tale of Two Indianas
Will the real Indiana please stand up?
There's the Indiana that is hemorrhaging jobs with no end in sight.
Then there's the Indiana that has seen record job growth.
There's the Indiana that is replacing high paying jobs with lower wage jobs.
Then there's the Indiana that is bringing in record high wage jobs.
There's the Indiana that is luring foreign firms and ignoring Hoosier companies.
Then there's the Indiana that is helping to expand home-grown Hoosier firms.
There's the Indiana that's giving away the farm in tax incentives to lure new jobs.
Then there's the Indiana that's pinching pennies as it attracts new projects.
Confusing isn't it? It's really easy to get all caught up in the daily rhetoric during this roller-coaster of a political season. If a candidate cites facts and figures and we read it in the paper, they must be telling the truth. Right? Certainly they wouldn't make claims that are misleading at best and patently false at worst, would they?
Well…
We have two starkly different economic pictures being painted. Who are we supposed to believe? Are we to believe that Indiana is in the economic toilet, or are we to believe that, despite numerous national challenges, Indiana is doing pretty darn well?
Call me a skeptic. It could be because I've raised five kids. I've got to see the data to back up a claim. And, frankly, it is amazing to me that we are hearing two so drastically different stories. So, what is the truth?
What is the real Indiana story?
- Indiana has gained 74,000 new jobs since the creation of the Indiana Economic Development Corporation (IEDC) in 2005. Yes, the unemployment rate is up recently, primarily due to seasonal layoffs and a gas-related slowdown (RVs and automobiles). Bottom line: According to figures from the Bureau of Labor statistics, Indiana has gained a net 30,800 jobs since January 2005. (January 2005 total employment was 2.942 million. August 2008 total employment was 2.973 million.)
- The average wage for new jobs committed in 2008 is $21.63 per hour, well above the state average wage of $18 per hour. Since 2005, the new jobs created have been consistently above the state average.
- More than half of the new economic development projects reported by the IEDC are for existing Indiana companies.
- In 2004, the average economic development project cost $37,652 in tax breaks and incentives. In 2008, the average project cost just $6,816 in incentives. Additionally, these incentives are now performance based and linked to certification of new jobs. Average return on investment: 2.5 years.
Additionally, according to Forbes Best States for Business Index 2008, Indiana ranks best in the Midwest for the cost of doing business. The Tax Foundation ranked Indiana first in the Midwest and 12th nationally for low taxes. Our state has received kudos from CEOs (Chief Executive Magazine: 1st in the Midwest), CNBC (Most improved State for Business: 1st in Midwest) and Standard & Poor's (one of only 10 states with an AAA credit rating).
There is no evidence to suggest that the climate for Indiana business is anything but greatly improved over the past four years. Is it perfect? No. But we've clearly been headed in the right direction.
By almost any economic measure, Indiana seems to be a good place to be to ride out this period of national economic turbulence. This is the real Indiana.
Now, wouldn't it be nice if our political campaigns, candidates and spin-meisters were required to always have evidence to back up their claims and tell the truth?
Guess I'm a Pollyanna after all.
The Rumor Mill
Musical chairs?
Could Sen. Joe Zakas (Granger) be poised to leave the Senate? Rumor has it that the long-time (since 1982) senator has thrown his name in the hat for St. Joseph County Superior Court Judge. So, if Zakas retires to take a seat on the bench, who will replace him?
One of the names mentioned as possibilities for the SD11 spot is Rep. Tim Neese (Elkhart). So, if Neese moves to Senate, who will replace him in the House? Could get interesting...
Dates to remember
Sept. 23: Small Business Roundtable with Sen. Dennis Kruse Fort Wayne
Oct. 6: Last day to register to vote in the November elections
Oct. 7: NFIB/Indiana Leadership Council meeting. Skyline Club, Indianapolis
And furthermore
Please give me your feedback. I enjoy hearing from you and I appreciate your comments. Thank you for being an NFIB member and for reading "Capitol Capers."
Barbara Quandt
NFIB Indiana State Director
317-638-4447
Barbara.Quandt@nfib.org
