It was announced on Friday by the Virginia Employment
Commission[1]
that the state’s unemployment rate declined in December to a seasonally
adjusted rate of 5.5%, representing the lowest unemployment figure in four
years.
December became the third consecutive month that the jobless
rate declined, with job increases throughout Virginia in manufacturing and the
financial sector. Some sectors, however, took on job losses: trade,
transportation, and leisure; hospitality; and professional and business
services.
Of course, Gov. Bob McDonnell stressed that the declining
jobless numbers equate to more families in Virginia with financial security and
continued business growth. The reason according to Bob McDonnell: conservative
fiscal policies and Virginia’s “pro-business climate.”
While it’s difficult to argue against Virginia being a good
state to start a business[2],
many conservatives and libertarians alike act as if these two factors (a
pro-business climate and conservative fiscal policies) are the only driving
forces behind a growing economy. Just as the myth of so-called trickle-down
economics was inflated and wrong, so too are the myths of fiscal conservatism
and pro-business policies as the keys to economic growth.
Instead, THE KEY to economic growth is fundamentally
education, education, and more education[3].
How can an advanced economy grow and continue to grow if the workforce that the
economy depends upon doesn’t have the requisite skill-set? An advanced economy
without an educated workforce will be left stagnant.
And more often than not, government spending in the sphere
of education is necessary in order to guarantee an education for a large
segment of the population.
But there is another crucial point worth noting. Oftentimes
when Virginia’s politicians talk about Virginia’s successful economic growth,
they talk as if Virginia doesn’t receive help from other levels of government
(i.e., the federal government)[4].
Like it or not, Virginia, like the individual, cannot achieve success solely on
its own. Sometimes, we all need a little help.
So the idea that Virginia is an island unto itself that has
achieved impressive economic growth in the face of an economic recession is, at
best, a dangerous myth. Virginia has not acted alone to achieve a 5.5% unemployment
rate. It has (gasp!) received help and
that’s not such a bad thing.
[1] http://www.vec.virginia.gov/vec-news
[2] http://www.forbes.com/special-report/2012/best-places-to-start-a-company.html
[3] http://educationnext.org/education-and-economic-growth/
[4] http://www.slate.com/blogs/the_reckoning/2012/10/25/blue_state_red_face_guess_who_benefits_more_from_your_taxes.html
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