Wednesday, July 13, 2016

3 Quick Steps to Goose the VA Economy

Potomac Local asked me to comment on Virginia dropping to the 13th "Best State for Business" in CNBC's annual rankings. 

Here's my comments:
Virginia's rank dropped to thirteenth largely due to weakness in the Virginia economy relative to other states.  Our economy is lagging because our largest source of business - The Federal Government - has imposed across-the-board spending cuts via the Sequester.  This economic weakness was predicted two years ago.  There are three quick ways we can ramp up the Virginia economy. 
#1 - Raise The Minimum Wage
There are some small short term steps we can take here at home to fix this.  First, raising the minimum wage would help to stimulate more economic activity by giving millions of Virginians more money to spend - 6 of 12 states ranked higher than Virginia (CO, MN, WA, MI, FL, NE) have higher minimum wages than we do here in Virginia.  
#2 - Expand Medicaid
Second, Virginia needs to expand Medicaid.  Virginia has left $4 billion on the table so far.  Numerous studies predict that Medicaid expansion would create 30,000 jobs in Virginia, about 2,000 jobs in Prince William and Stafford Counties, save Virginia taxpayers $180 million per biennium that could be spent elsewhere, and provide healthcare to 400,000 people including at least 20,000 in Prince William and Stafford Counties..
#3 - Clean Up Coal Ash
Third, cleaning up coal ash would generate at least a billion dollars in new spending right here in Virginia and clean our environment.  If the average coal ash job pays $50,000/year, $1 billion in coal ash remediation spending equates to at least 20,000 new jobs and would cost the average rate payer less than $1 per month.

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