Business writer Jaquetta White of the Times Picayune reported that median household income in Louisiana dropped 7.8% in 2008 compared to the previous year according to the latest U.S. Census Bureau report released earlier this month. The report also showed that residents in all but 11 states and D.C., experienced a drop in income over the year, but that Louisiana had one of the sharpest income declines with just seven states performing worse.
Louisiana median income for 2008 was $39,563.00, down from $42,900.00 in 2007. The U.S. median income for 2008 was $50,303.00 down from $52,163.00 in 2007. In 1998 the Louisiana median income was $41,863.00 and in 2008 $39,563.00. That 10 year period saw a drop of 5.4% in Louisiana median income.
In the article local demographers were not surprised as they say it reflects a resetting of a part of the economy since hurricane Katrina. Demographer Elliot Stonecipher said the 10 year decline is not surprising since there has been a trend in Lojuisiana since at least the early 1990s of an outflow of high-paying jobs and an increase in low-wage ones. Our job base, the concentration of jobs in the service sector, means generally we do fit into that broad definition of a state without any evidence of industries that are higher income.
During that 10 year period mentioned above the Louisiana median income was almost $10,000.00 less per year than the U.S. median income. That would seem to confirm Mr. Stonecipher above comment. It would be nice if a report would be made during the same 10 year period concerning the median incomes of CEO's and executives of the business community. I think a report would show what I have written about on many occasions concerning the transfer of wealth from the middle class to the wealthy.
Louisiana gives away millions of dollars to new and existing businesses in the form of tax breaks, financing for new plants, buying land for business, etc., etc., and the latest report above shows that the state has made no progress in bringing good paying jobs to Louisiana and the state in that 10 year period made no headway in closing the gap between the median income in Louisiana compared to the median income in the U.S.
Priority in Louisiana seems to be, take care of the business community and trickle down economics will lift the average worker up. Unfortunately, that is pure nonsense with a capital N.
