Gov. Pritzker continued to tout his first-term “accomplishments,” this time as part of his second inaugural speech. Included were his usual lines about paying down the state’s unpaid bills, balancing the budget and garnering credit upgrades for the state.
We’ve refuted those claims in the past, but there was a new one this time: that his administration deserves credit for Illinois’ GDP (Gross Domestic Product) recently breaking $1 trillion.
As with so many of his claims, the governor is taking credit for something he had little to do with. The “improvements” in Illinois tax revenues and cash flow can all be traced back to the $10 trillion in federal bailouts and spending nationally, of which nearly $200 billion was dedicated to Illinois’ private and public sectors.
The same goes with the $1 trillion GDP claim. The sky-high inflation resulting from the bailouts has jacked up prices, artificially inflating GDP growth over the past two years. It’s the only reason why Illinois broke the $1 trillion mark.
If inflation had remained at its pre-pandemic levels, Illinois GDP today would only be around $965 billion. (The $1 trillion mark would likely have come two years from now.)
This might sound like nitpicking, but the reality is Gov. Pritzker has little to brag about when it comes to economic growth under his leadership. Illinois has experienced the nation’s 9th-worst GDP growth since Q1 2019, growing only 18 percent. All of Illinois’ neighbors performed better.
The governor’s performance after inflation is taken into account is just as bad. Illinois’ real GDP growth since Q1 2019 is just 3 percent, the nation’s 12th-worst performance and, again, worse than any neighbor.
The growth of the other “trillion” GDP states? Florida grew 4 times more at 12 percent. Texas grew 2.6 times more at 7.7 percent. And even New York, another state that’s struggling with out-migration, managed to outpace Illinois with a growth of 5.6 percent.
If anything, Gov. Pritzker’s policies have stunted GDP growth, not encouraged it. Pritzker has approved higher taxes – including a doubling of the gas tax and a $600 million corporate tax hike – instituted more regulations (i.e. green energy) and added subsidies for favored industries. He’s also hiked government spending in numerous ways and avoided making any structural reforms.
The lack of growth has hit working Illinoisans particularly hard. Under Pritzker, employment in Illinois has fallen by 173,000, according to the latest U.S. Bureau of Labor Statistics data.
That’s the second-biggest loss of jobs nationally and 5th-worst in percentage terms, second only to New York.
And joblessness under Pritzker remains painfully high relative to the rest of the country. At 4.7 percent in November 2022, Illinois’ unemployment rate was the nation’s 2nd-highest, behind only Nevada. In October, Illinois’ unemployment rate was the highest in the nation.
Illinoisans struggling in one of the most challenged states in the country deserve honesty from their governor. Instead, all they get is spin.