This weekend, Secretary of Housing and Economic Development Gregory Bialecki took to Blue Mass Group to tout the supposed economic miracle engine that is the Deval Patrick Administration. This was before today’s report that instead of creating 41,000 jobs in 2011, Massachusetts economy only created 9000.
We have some credibility in telling this story because our Massachusetts economy has performed better than the rest of the country over the last five years (we didn’t fall as hard in the downtown and we have been recovering stronger and faster since), and we are especially outperforming many of the states that are true believers in the prevailing narrative.
But we are interested in what you are seeing and hearing. Have we begun to gain some traction with an economic development strategy based on education, innovation and infrastructure, or is this the first you are hearing of it? Are there others around the state or the country who are creating an alternative narrative in a powerful way? Let us know.
Secretary Bialecki where did those 32,000 jobs go? Were they ever really here? Are you basing your projections of economic development on faulty numbers. The citizens of the Commonwealth deserve to know. So far the response from your colleagues has been weak, to say the least.
State Secretary of Labor and Workforce Development Joanne F. Goldstein said that she believes the federal revisions underestimated the job growth in the second half of 2011, and the state added more than 9,000 jobs over the course of last year.
She pointed to a steadily declining unemployment rate, which fell to 6.9 percent in December from 7.8 percent in January 2011. (Unemployment statistics are estimated from a separate survey of households, while job data comes from a survey of employers.)
Using the unemployment numbers is not a good measure of job creation in this economy. Unlike past recessions, people are leaving the working economy. This is driving down unemployment numbers without actually creating new jobs. Last month the Northeastern University Center for Labor Market Studies wrote a report highlighting this phenomenon. The report titled “The Great Recession of 2007-2009, the Lagging Jobs Recovery, and the Missing 5-6 Million National Labor Force Participants in 2011” talks about those that have left the labor force.
Coinciding with today’s revision of jobs numbers comes news that wind turbine maker Vestas has decided to shelve plans to expand to Marlborough. The Boston Business Journal has the story.
Vestas Technology R&D Americas Inc., a Danish company that bills itself as the world’s largest producer of utility-scale wind turbines, is backing out of a plan to build a 27,000-square-foot research and development facility in Marlborough, MetroWest Daily News reports.
This center of course was part of the Bialecki-Patrick crony-capitalism tax credit plan. According to the Novograd Journal of Tax Credits the Commonwealth issued Vestas tax credits for the move.
The Massachusetts Economic Coordinating Council approved eight projects to receive tax credits through the Economic Development Incentive Program (EDIP), State House News Service reported. State officials estimate that when combined, the projects will leverage $97 million in private investment, create 355 jobs and retain 328 positions. Businesses that proposed the projects include Magmotor Technologies in Worcester; Benovations LLC in Leominster; Vestas Technology R&D Americas Inc. in Marlborough; Techno-Bloc Corporation in North Brookfield; Warren Pumps LLC and Portland Valve LLC, both in Warren; Gulfstream Aerospace Service Corporation and Seal Ryt Corporation, both in Westfield; Mid City Steel of Westport; and Armbrook Senior Living LLC of Springfield.
Another failure of the corporate favoritism of the Bialecki-Patrick model. When will they learn?