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Governor Pat McCrory and other state leaders continue to tout the Carolina Comeback, their name for the economic recovery in the state.

But the numbers tell a different story with workers earning less and many people in rural counties unable to find a job at all.

Economist Jared Bernstein, a Senior Fellow at the Center on Budget and Policy Priorities, was in Raleigh recently to talk about the state and national economy and how policymakers can help struggling families.

“You have to invest in the future. And investing in the future doesn’t just means creating a business climate that business like by cutting their taxes,” explained Bernstein. “Once you start whacking away at your tax base so that you can improve this idea of business climate in the near term, you really risk undermining the ability to drive future productivity in the long term.”

Bernstein joins us this weekend on NC Policy Watch’s News & Views with Chris Fitzsimon.

Click below to hear Bernstein explain why North Carolina’s politicians should spend less time talking about business climate rankings and spend more time focused on public investments.

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NC Budget and Tax Center, Uncategorized

Last Thursday, members of the Economic Development and Global Engagement Oversight Committee saw evidence that many “business climate” rankings overstate how well North Carolina is actually doing.Abernathy Slide - Rankings and Econ Performance

Respected economic expert Ted Abernathy, formerly the Executive Director of the Southern Growth Policies board and now with Economic Leadership, an economic development and analysis consultancy, briefed the committee on a range of economic dynamics from growing wage gaps between urban and rural North Carolina to factors that influence our competitiveness on the global market.

Abernathy also examined how North Carolina’s economic performance compared with how we fared in several business interest group and media publications. This analysis shows that North Carolina’s economic performance has fallen short of its stature in many of the rankings. As can be seen in the graph, North Carolina is in the top 20% in performance (“Statistical Ranking”), but is a top 5 state in the “Best States” rankings. Our economy is doing better than many states, but not nearly as well as many state rankings would imply. Read More

NC Budget and Tax Center

It is becoming ever clearer that recent tax cuts have not endeared North Carolina to the entire business community. Proponents of the 2013 tax cuts argued that they would create a more competitive and business-friendly climate. Looking at recent business climate rankings, however, undermines this argument in two key ways.

First, multinational corporations already liked North Carolina just fine before the latest tax cuts. Second, the tax cuts have undermined our economic competitiveness in other important areas.

The 2014 Top Competitive States ranking by Site Selection, in which North Carolina is ranked #1, suggests that the tax cuts worked. However, North Carolina has consistently been at or near the top of the Site Selection rankings for a decade, including being #1 in some years prior to the 2013 round of tax changes. This ranking is largely based on the level of private capital investment a state secures, the number of jobs created, and a state’s tax climate – as determined by the conservative Tax Foundation. Essentially, low tax rates and high levels of capital investments – made possible in part due to generous economic incentives provided to corporations by state governments – benefits a state’s performance in this ranking. Read More

Commentary

equality overtonThe growing disconnect between the last gaspers in the far right anti-equality movement and the modern global business community is on full display this week.

Today, Raleigh’s News & Observer ran an editorial by Apple CEO Tim Cook that appeared in yesterday’s Washington Post in which Cook blasted the nation’s soon-to-dissipate wave of state discrimination laws masquerading under the banner “religious freedom.”

Here’s Cook:

“America’s business community recognized a long time ago that discrimination, in all its forms, is bad for business. At Apple, we are in business to empower and enrich our customers’ lives. We strive to do business in a way that is just and fair. That’s why, on behalf of Apple, I’m standing up to oppose this new wave of legislation – wherever it emerges. I’m writing in the hopes that many more will join this movement. From North Carolina to Nevada, these bills under consideration truly will hurt jobs, growth and the economic vibrancy of parts of the country where a 21st-century economy was once welcomed with open arms.”

The message from Cook, head of one of the nation’s largest and most profitable companies, couldn’t be much clearer: “North Carolina: get you act together or be left behind even further than you already are.”

Happily, Gov. Pat McCrory seemed to echo Cook when he told an interviewer the bill “makes no sense” and similarly criticized the state Senate’s silly proposal to exempt magistrates from doing their duty to marry all couples who lawfully present themselves for marriage.

One word that was notably absent from the Guv’s statements on the issue thus far (at least in the reports I’ve seen) was “veto.” Let’s hope this was just an oversight and not another example of McCrory’s frustrating tendency to pontificate against controversial ideas and let them become law without his signature. If McCrory really wants to act like a leader on this matter, he should get out in front and nip it in the bud by sending a strong message to the members the General Assembly.

Commentary

Be sure to check out the newest lead stories on the main NCPW site today:

This morning, N.C. Justice Center Communication Director Jeff Shaw authored a personal and exceedingly rational commentary on the latest outbreak of gun madness in our gun-obsessed culture (which even discusses his own personal experience growing up with firearms).

Meanwhile, in this afternoon’s “lead,” Chris Fitzsimon dissects the misleading claims of a conservative national group with an innocuous-sounding name (i.e. the Tax Foundation) about North Carolina’s “business climate.” As Chris notes:

“It’s not an analysis of how our state is doing at all.

It has little to do with the economy and isn’t even an accurate picture of the taxes businesses and individuals actually pay. And it ignores a long list of factors that business leaders rely on when making their decision about where to locate, from transportation to workforce readiness to quality of life for employees.

The Tax Foundation ranking isn’t any way to evaluate the decisions our leaders have made. It’s a flawed mechanism designed to reinforce an ideological agenda. And it ought to be reported with a little more context.”

Bonus story: Check out yesterday’s “Progressive Voices” entry from NCPW contributor Chavi Koneru about the fast-growing Asian American vote and the perplexing failure of politicians to cultivate it — even in closely-divided states like North Carolina.