Tuesday, June 12, 2012

Virginia’s Conservative Gov. Robert McDonnell Starts to Confront the Truth – The State’s Job Growth and Prosperity was Due to the Federal Government Spending,

Not Conservative Policies – And Guess What Happens When Federal Spending Slows

If one listens to Conservatives one gets the impression that the Federal government never ever created a single job, and that Federal spending is detrimental to the economy.  This is not a mistaken interpretation of Conservative philosophy, it’s what they actually believe.  So Virginia’s conservative Republican Governor has been taking all the credit for the past 2 ½ years for his states relatively strong economic performance.

The truth of course is that Virginia has benefited probably more than any other state from Federal largesse.  In northern Virginia Federal spending has been the impetus of strong employment growth, and in southeast Virginia defense spending in the Norfolk/Hampton Roads area has created an economic stronghold.  But Conservatives are now driving Federal fiscal policy and a spending slowdown is now beginning and is expected to accelerate in coming years.

So naturally Conservatives are not worried, because it is their policies, not the Federal government that causes Virginia prosperity.  Or maybe not.

The Washington area has been largely insulated from the economic downturn that ravaged other parts of the country, given its proximity to a federal government that ramped up spending to support two wars and stir a recovery. Unemployment rates in Maryland and Virginia have generally remained below the national average, helping to stabilize the local housing and retail markets.

But the region’s relative good fortune may be ending now as concerns about federal deficits grow larger. The government has already scaled back or canceled many military and technology programs, and area business leaders fear worse after the presidential election, when lawmakers must again confront decisions about taxes and spending levels. Currently, automatic spending cuts called for under the sequestration process, totaling more than $1 trillion over about a decade, are set to start in January, with half coming out of the defense budget.

Job cuts are already starting, and these are good, high paying jobs.

The loss of private-sector jobs — many of them high-paying, white-collar positions — comes as Lockheed Martin and other defense and government contractors are eliminating headquarters positions in anticipation of Pentagon budget cuts.

Exxon Mobil is the latest to leave Virginia, and the Governor’s response is to pat himself on the back for the fact that they did not leave earlier.

Virginia Gov. Robert F. McDonnell (R) said Wednesday that he has been speaking toExxon officials for two years about a possible move, trying to persuade the company to stay.

“We’ve actually been fortunate that they have delayed their decision and we were able to keep them here for a couple years to keep that presence here,” McDonnell said. “Obviously it’s a lot of jobs. I’m disappointed.”

But don’t worry, everyone is sure that if (when) Republicans take over full control of the Federal government they will enact a continuation of polices that produce the same employment results nationwide that Virginia is experiencing.  After all the Federal government doesn’t create jobs, it only destroys them so huge cutbacks in Federal spending and the huge job losses that will accompany it must be a good thing, right. 

No comments:

Post a Comment