According to an Associated Press story: “The fastest growing segment of the economy over the past year has been state government, which added 8,900 jobs: 1,800 more than in the petroleum sector, construction and manufacturing combined.””This is a huge increase in state government,” said Loren Scott, professor emeritus of economics at Louisiana State University. “As long as it’s not the only growing factor, it’s not terrible. But you have to watch this. It’s not the textbook example of how to grow your economy.”
Governor Blanco’s recent veto of the tax relief on businesses’ utilities only serves to exacerbate the problem. She continues to go on junkets to England and elsewhere to recruit businesses while screwing the businesses already in Louisiana. That attitude is not lost on those she seeks to recruit. That is why she has had so little success in getting new businesses in the state while the exodus of existing businesses continues unabated.
Government retarding the economy? This data shows the result of expanding state government and ignoring the private sector economy.
While it is only anecdotal evidence, I suggest that the private sector is not growing because of the growth in state government.