23 December 2009

As Governments Grow and Spend, Economies Die

You might think that as long as you can grab one of those higher paying, higher benefit government jobs, that everything will be okay.  Sadly, no.  Public employee unions have had a dizzy ride to the heights of power in state and federal government -- but it is not sustainable.

Look at Michigan, a big government and big union state: Michigan's population has dropped below 10 million, and the state just keeps hemorrhaging jobs, people, and real wealth.
Michigan has been bleeding people since 2005, and at the heart of the decline has been the growing exodus of people moving out looking for work. The current estimate puts Michigan's population at 9,969,727, down from 10,002,486 in 2008. The state has seen a net loss of more than a half-million people to other states since 2001 -- a number that swamps the natural increase from a greater number of births than deaths.

For a number of years, the relative vibrancy of the nation's economy gave unemployed Michigan workers a chance to seek jobs in the Sun Belt and across the country. But with the rest of the nation fully consumed by the recession in 2008, some experts suspected there would be fewer opportunities for workers to flee Michigan.

But the estimates released Wednesday show that people still found ways to leave -- either for another job, retirement or education. Although the outmigration slowed, from an estimated 103,637 from 2007 to 2008 to 87,339 from 2008 to 2009, it still pulled the state's population into the negative.

At current trends, Georgia's population -- growing at a steady clip for years -- could pass Michigan as early as next year to become the eighth largest state in the country. Florida was the last state to surpass Michigan, back in 1979.

Xuan Liu, manager of SEMCOG's data center, said Michigan's migration trend could actually pick up after the nation recovers. He said the state has lost thousands of manufacturing jobs in the last few years that are unlikely to return. That will force people to find other work, become entrepreneurs or "go other places to find jobs."

"I think it's very likely we're going to see more people leave," he said.

The impact from outmigration is marked: It lowers the state tax base and puts additional strain on state and local resources. And it puts additional pressure on an already soft housing market, he said. _DetroitNews
California is in the same position as Michigan, with a lot more people and jobs at stake. But California's unions -- increasingly public employees' unions -- are holding the state for ransom. Just like Michigan, California's future is forfeit.

This is the face of US Democratic Party machine politics -- the ultimate result. Obama's policies promise to bring this type of politics to every state.

If you do have a good government job with good benefits? Plan to retire before the S hits the F. You may have less time than you thought.


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Blogger evmick said...

Government jobs don't increase overall wealth...rather the opposite.

What's to insure that after a government employee retires that the state will keep it's bargain?

Look at what's happening to military retirees.

Wednesday, 23 December, 2009  
Blogger Sojka's Call said...

I am trying to extrapolate what happens at a Federal level. Recent data shows that Washington D.C. and the surrounding area is the # 1 hot-spot in the nation for jobs and real estate since the number of Federal jobs has been increasing steadily under both W and now Obama.

It is not as easy to leave a country as a state.

Wednesday, 23 December, 2009  
Blogger al fin said...

Government retirees are more likely to get their full pensions than a lot of private sector employees.

SC: Yes, Washington DC is becoming the new Rome, center of high dollar corruption by another name.

More people will go Galt than will leave the US, but I see plenty of that beginning to happen as well.

Saturday, 26 December, 2009  

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“During times of universal deceit, telling the truth becomes a revolutionary act” _George Orwell

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