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Commentary

The wonks at the Center on Budget and Policy Priorities are out with a new report that, once again, derides the central premise  of the “economic development” strategy being pursued by Governor Pat McCrory and the General Assembly.

Here’s the opening to “State Job Creation Strategies Often Off Base”:

To create jobs and build strong economies, states should focus on producing more home-grown entrepreneurs and on helping startups and young, fast-growing firms already located in the state to survive and to grow ? not on cutting taxes and trying to lure businesses from other states.  That’s the conclusion from a new analysis of data about which businesses create jobs and where they create them.

The data show that:

  • The vast majority of jobs are created by businesses that start up or are already present in a state — not by the relocation or branching into a state by out-of-state firms. Jobs that move into one state from another typically represent only 1 to 4 percent of total job creation each year, depending on the state.  Jobs created by out-of-state businesses expanding into a state through the opening of new branches represent less than one-sixth of total job creation.  In other words, “home-grown” jobs contribute more than 80 percent of total job creation in every state.
  • During periods of healthy economic growth, startups and young, fast-growing companies are responsible for most new jobs.  During the Internet-driven boom of the late 1990s and early 2000s, for example, startup firms (those less than one year old) and high-growth firms — which are likely to be young — accounted for about 70 percent of all new jobs in the U.S. economy.  Firms older than one year actually lost jobs on average; any new jobs they created were more than offset by jobs they eliminated through downsizing or closure.  In short, startups and young, fast-growing firms are the fundamental drivers of job creation when the U.S. economy is performing well.

State economic development policies that ignore these fundamental realities about job creation are bound to fail.  A good example is the deep income tax cuts many states have enacted or are proposing.  Such tax cuts are largely irrelevant to owners of young, fast-growing firms because they generally have little taxable income.  And, tax cuts take money away from schools, universities, and other public investments essential to producing the talented workforce that entrepreneurs require.  Many policymakers also continue to focus their efforts heavily on tax breaks aimed at luring companies from other states — even though startups and young, fast-growing firms already in the state are much more important sources of job creation.”

If only our state policymakers would pay attention and abandon their archaic and failed , tax cuts uber alles approach to the economy, North Carolina might really be making some hay. Unfortunately, that clearly is not the case.

Click here to read the entire report.

Commentary

Forsyth County high school teacher Stuart Egan has a couple of “must reads” you should check out this morning.

Number One is this open letter from the main N.C. Policy Watch site to State Rep. Paul Stam in which he dissects some of Stam’s recent comments about what’s needed in our public schools. Here’s Egan on Stam’s call to evaluate teachers and pay the “best” ones more:

“You said in the interview that ‘we do not pay our best teachers enough and we pay our ‘unbest’ teachers too much.’

I have not really heard the terms ‘best’ and ‘unbest’ used on actual teacher evaluations and would very much like to hear what how such labels might be applied in the real world. But I believe you are touching on teacher effectiveness and teacher evaluations as currently measured by the state.

The problem with teacher evaluation processes in the state of North Carolina is that they are arbitrary at best. No one single protocol has been used to measure teacher effectiveness in your tenure as a legislator. That’s because there has not been one that accurately reflects teacher performance. In fact, during your tenure in Raleigh we have switched curriculum and evaluation protocols multiple times. It seems that teachers are always having to measure up to ever-changing standards that no one can seem to make stand still, much less truly evaluate.”

Click here to read the rest of of the letter.

Number Two is an op-ed in this morning’s Winston-Salem Journal debunking the hokum state leaders have been peddling on the subject of vouchers and charter schools. Again, here’s Egan::

“The original idea for charter schools was a noble one. Diane Ravitch, in ‘Reign of Error,’ states that these schools were designed to seek ‘out the lowest-performing students, the dropouts, and the disengaged, then ignite their interest in education’ in order ‘to collaborate and share what they had learned with their colleagues and existing schools.’

But those noble intentions have been replaced with profit-minded schemes. Read More

Commentary

Voting rightsAs North Carolinians await a verdict in the federal court case challenging their state’s voter suppression laws, a new national study confirms what common sense tells us: these laws really do work to depress the vote.

Scott Keyes at Think Progress has the story:

“For years, researchers warned that laws requiring voters to show certain forms of photo identification at the poll would discriminate against racial minorities and other groups. Now, the first study has been released showing that the proliferation of voter ID laws in recent years has indeed driven down minority voter turnout, and by a significant amount.

In a new paper entitled “Voter Identification Laws and the Suppression of Minority Votes”, researchers at the University of California, San Diego — Zoltan Hajnal, Nazita Lajevardi — and Bucknell University — Lindsay Nielson — used data from the annual Cooperative Congressional Election Study to compare states with strict voter ID laws to those that allow voters without photo ID to cast a ballot. They found a clear and significant dampening effect on minority turnout in strict voter ID states.”

The researchers found that strict voter ID laws could depress turnout in primary elections amongst African American, Latino and Asian American voters by numbers as high as 8.6%, 9.3% and 12.6%, respectively.

But, of course, you know that these laws are really just about attacking “fraud.”

Commentary

Coal ashThe Greensboro News & Record has a good editorial this morning in which it lauds the state Supreme Court’s decision to strike down the General Assembly’s overreach in its turf battle with the Governor over control of the state coal ash commission.

But the editorial concludes with this warning to the Guv:

“It’s the governor’s responsibility. Now he’s got to prove that legislators of his own party were wrong to distrust him with this important task.”