INDIANAPOLIS – Eric Holcomb, much like Mike Pence, continues to say that wages in Indiana are on the rise for Hoosier workers. However, economic stats do not agree with the economic snapshot Holcomb is trying to sell.
“Indiana’s economic recovery is behind the national average – with Hoosiers earning less while working more hours. Yet, Eric Holcomb refuses to admit what the economic stats are revealing, and instead continues to mislead Hoosiers,” said Drew Anderson, communications director. “But with Hoosiers not getting more bang for their bucks, the Mike Pence-Eric Holcomb snapshot economy falls flat.”
BACKGROUND INFORMATION: WAGES FALLING UNDER PENCE-HOLCOMB ADMINISTRATION
HEADLINE: “Hoosiers’ income still lags” [IndyStar, 3.24.16]
Hoosiers’ income grew slower than the national rate last year, leaving Indiana ranked 38th in per-capita income, the Bureau of Economic Analysis reported Thursday. Income for Indiana residents was up 4 percent last year, to $40,998 per person. Nationally, per-capital personal income increased 4.4 percent, to $47,669. [IndyStar, 3.24.16]
2014: Income Hoosiers Received Grew Slower Than The National Average. “The federal government released new figures on the wealth of states’ residents, and the numbers aren’t good for Indiana. The income Hoosiers received last year grew slightly slower than the national average, dropping the state from 38th to 39th in per capita income, according the Bureau of Economic Analysis. Personal income in Indiana grew 2.5 percent from 2013 to 2014. Only five states had slower growth rates. That resulted in a per capita income in Indiana of $39,433 compared with $46,129 for the nation. Indiana’s per capita income was very close to the national average from 1929 until the 1970’s. The difference opened up even more in about 1980. The 2014 gap of $6,696 is the largest it’s been. Among types of income in Indiana, investment income and government benefits like Social Security grew the most. Wages grew the least. Perhaps it’s not surprising, then, that the Pew Charitable Trusts reported Wednesday that Indiana is not among the states where employment has recovered from the drop caused by the Great Recession.” [Indy Star, 3/26/15]
2014: Indiana’s Earnings Growth Rate Ranked 44th Among The 50 States, With Incomes Growing Just 2.1 Percent Compared With A National Average Of 4 Percent. “I am proud of Indiana’s record on job creation but painfully aware that our performance in creating good-paying jobs must improve. Our earnings growth rate ranked 44th among the 50 states last year, with incomes growing just 2.1 percent compared with a national average of 4 percent. Our average wage-per-job figure is distressing. It was less than 1 percent below the national average in 1970; by 2012, it was more than 15 percent below the national average.” [Editorial, Journal Gazette, 1/13/15]
Indiana’s Average Wage-Per-Job Figure Was More Than 15 Percent Below The National Average. “I am proud of Indiana’s record on job creation but painfully aware that our performance in creating good-paying jobs must improve. Our earnings growth rate ranked 44th among the 50 states last year, with incomes growing just 2.1 percent compared with a national average of4 percent. Our average wage-per-job figure is distressing. It was less than 1 percent below the national average in 1970; by 2012, it was more than 15 percent below the national average.” [Editorial, Journal Gazette, 1/13/15]
Since 2000, The Median Household Income In Indiana Decreased By 14 Percent. “Median household income in Indiana has decreased by 14 percent since 2000; by 10.8 percent since 2007. It is the largest decrease among all neighboring states. Figures for Temporary Assistance to Needy Families show that the safety net is failing. Since 2008, the state has seen a 71 percent decline in TANF alongside a 25 percent increase in poverty.” [Editorial, Journal Gazette, 1/15/15]
Indiana Institute For Working Families Senior Policy Analyst Derek Thomas: “To Describe Indiana In Terms Of Absolute Economic Success Is Disingenuous.” “Gov. Mike Pence describes Indiana as ‘the fiscal envy of the country,’ enjoying balanced budgets, strong reserves and the largest tax cut in the state’s history. Indiana is on a roll, he proclaimed in his State of the State address Tuesday. This ignores some bitter realities. ‘To describe Indiana in terms of absolute economic success is disingenuous,’ said Derek Thomas, senior policy analyst for the Indiana Institute for Working Families. ‘I don’t think anyone is envious of Hoosier families and their finances.’” [Editorial, Journal Gazette, 1/15/15]
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