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Report: Walker Costing Wisconsin More than 18,000 Jobs a Year

Posted on December 14, 2011 | in Labor News | by
Photo credit: Wisconsin State AFL-CIO  

This is a cross-post from the Wisconsin State AFL-CIO blog by Karen Hickey in AFL-CIO Field Communications.

A report released by the Institute for Wisconsin’s Future entitled The Price of Extremismclearly and systematically outlines that Gov. Scott Walker’s policies are not working. In fact, the indirect, ripple affects of Gov. Walker’s actions are costing Wisconsin more than 18,000 full-time, private-sector jobs during the first year of Walker’s budget.

The report focuses on four ways Walker’s policies are hurting Wisconsin and attaches private-sector job loss estimates to each of the policies. The four areas and estimated job loss include:

1. Cuts to education and health care, which will cost Wisconsin 5,400 jobs.

2. Cuts in aid to low-income families, which will cost Wisconsin 1,200 jobs.

3. The economic impact of Act 10, which will cost Wisconsin 6,900 jobs.

4. The rejection of federal aid funds, which has cost 4,700 jobs.

The report, which can be viewed here, also provides county-by-county estimates of the impact of Act 10 and the impact of education cuts on local economies.

“In tough times, the worst thing a governor can do is further shrink the economy by stifling spending,” explained Jack Norman, research director for the Institute for Wisconsin’s Future. “Gov. Walker has taken huge amounts of money out of the economy through budget cuts, attacks on workers and increased taxes on low-income families. This leads businesses to have fewer customers, workers to have fewer jobs and local governments to have less revenue.”

“Along with stripping public employees of their basic collective bargaining rights, Act 10 decreased the spending power of public employees by an average of $3,668 a year for the typical public employee making $40,000 a year,” said Phil Neuenfeldt, president of the Wisconsin State AFL-CIO. “This has a huge affect on local economies that will result in $700 million leaving Wisconsin’s economy. This is money that was spent at the local corner store and small businesses in communities across the state. The end economic result for Wisconsin is the loss of 6,900 full-time private-sector jobs.”

“Under Walker, Wisconsin is 33,800 jobs short of matching the national pace of job creation,” said Stephanie Bloomingdale, secretary-treasurer of the Wisconsin State AFL-CIO. “Walker’s policies are not working. Our state needs jobs. It is crystal clear that we need to change direction so that Wisconsinites who work hard and play by the rules can have access to family-supporting jobs. This report is another reminder that Gov. Walker must be recalled for the sake of Wisconsin.”

The Institute for Wisconsin’s Future (IWF) is a nonprofit, nonpartisan statewide organization dedicated to tax policy research, community organizing and education policy. For more details, including copies of the various documents referred to in this press release, see the IWF website at: www.wisconsinsfuture.org.

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