Blog

August 23, 2010 by Sean O'Leary
Want to Help West Virginia’s Economy? Invest in Infrastructure

I've talked before about how tax incentives aren't particularly effective in transforming the state's economy. They might create a modest number of jobs in the short run, but tax incentives deplete resources available for public investments that can improve a region's infrastructure and increase the skills of it workforce. Basic public investments can better improve a region's…

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August 21, 2010 by Ted Boettner
WV Economic Expansion? Not Until New Monthly Jobless Claims Are Under 6,500

The Department of Labor is showing that monthly jobless claims (a.k.a. Unemployment Insurance Initial Claims) rose to 500,000, a nine-month U.S. high. This is not a good sign for the economic recovery. Most economists maintain that new monthly claims need to be below 400,000 for us to see a substantial uptick in hiring.    So, what does…

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August 20, 2010 by WVCBP
Health Care Reform Boost to West Virginia Community Health Centers Could Create 5,000 New Jobs

According to a recent study by the Center for American Progress , new federal funds from the recent health care legislation should create nearly 5,000 new jobs in West Virginia, thanks to significant investment in community health centers. The Affordable Care Act will provide $11 billion nationwide to build new community health centers and improve existing ones. Most…

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August 19, 2010 by Sean O'Leary
The middle class in West Virginia is losing ground

West Virginians have had no shortage of economic challenges over the past few years. Jobs have grown scarce, health care costs have risen, and financial insecurity has grown. One economic challenge, however, stretches back for decades, slow income growth for middle class families. For the first half of the 20th century, the middle class grew…

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August 18, 2010 by WVCBP
The Apples & Oranges of Public And Personal Finance: Putting Deficit Spending Into Perspective

Howard Swint's recent commentary in the Charleston Gazette rails against government spending in the wake of the greatest recession since the Great Depression. There's really no shortage of targets for Swint's ire: the Emergency Economic Stabilization Act of 2008 that created the Troubled Assets Relief Program (TARP), Bush's infamous tax cuts, supposedly mismanaged pension plans. To…

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August 18, 2010 by Ted Boettner
Hoppy, just say you want to privatize Social Security

Hoppy Kercheval's commentary today about how politicians are "raiding Social Security" illustrates his long confusion with the program and his desire to privatize or gut the program. Hoppy seems to be getting his inspiration from this Wall Street Journal article. As we've illustrated here and here, Social Security is a basic means of survival for many of our elderly. Not to…

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August 17, 2010 by WVCBP
5 Unemployed Workers for Each Available Job in US

As of June 2010, there are five people competing for every available job in America.  There are about three million job openings while there are approximately 15 million people unemployed.  The data for the national estimates were provided by the US Bureau of Labor Statistics.  Due to small sampling size, there is no federal or…

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August 17, 2010 by Ted Boettner
The Historical and Future Decline of the Coal Economy

A few blogs posts ago, I showed a chart that illustrated the historical decline in coal employment and production in West Virginia. In 1975, the coal industry directly employed 55,000 workers and accounted for about 20 percent of our state's economy (GrossState Product).  Today, the coal industry directly employs 19,000 workers and makes up just six…

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August 13, 2010 by Sean O'Leary
Making economic projections isn’t always easy.

Economic projections play an important role in the budget process in West Virginia. Each year, the West Virginia State Budget Office publishes the Executive Budget, which includes an economic forecast. The economic forecast projects employment numbers, population growth, the unemployment rate and many other important economic indicators for the next several years. These projections help…

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August 13, 2010 by WVCBP
Jobs bill reduces deficit, not the other way around

As one of her reasons for voting against The Education Jobs and Medicaid Assistance Act (a.k.a. jobs bill), Congresswomen Capito stated in the Gazette this morning that "this bill add to our already bloated deficit." Leaving aside for a moment that Capito bears significant responsibility for our large budget deficits, the assertion that the jobs bill adds to the deficit is unsubstantiated and…

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