The Ridgewood Blog Brings a Free Market Laissez-faire Point of View to Local, New Jersey State and National Issues.
the staff of the Ridgewood blog
WASHINGTON DC, the U.S. Chamber of Commerce announced its endorsement of Candidate Curtis Bashaw to represent New Jersey in the U.S. Senate. The U.S. Chamber endorses candidates for federal office who will stand up for free enterprise, including by vigorously advocating for public policy solutions that will spur economic growth, support jobs, and promote businesses of all sizes’ ability to continue to innovate and invest in America.
the staff of the Ridgewood blog
Washington DC, the Federal Reserve leaves rates unchanged , issues the following statement:
the staff of the Ridgewood blog
Washington DC, (8:30 am)total nonfarm payroll employment rose by 236,000 in March, and the unemployment rate changed little at 3.5 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in leisure and hospitality, government, professional and business services, and health care. This news release presents statistics from two monthly surveys.
Continue reading Payroll Employment Rises by 236,000 in March; Unemployment Rate Unchanged at 3.5%
The Real Cost to New Jersey of Being an Outlier: The Impact of Steep Corporate Tax Rates
the staff of the Ridgewood blog
Morristown NJ, just a few decades ago New Jersey’s economy was the envy of the nation. In recent years the state has become an outlier, ranked at the bottom of most lists for its ability to attract and retain business in the Garden State, primarily driven by a high cost of doing business and tax burden. In a new report, the Garden State Initiative offers an alternative path to restore the state’s competitiveness through tax reform that allows New Jersey’s natural attributes to outweigh its crushing tax burden.
By Tom Bracken and Michele Siekerka, Opportunity NJ
Trenton NJ, Governor Murphy’s recent Budget Address painted an optimistic picture of New Jersey’s current financial health and future prospects, declaring victory on goals that included “restoring fiscal responsibility” and “delivering property tax relief” as if the work were already done. While we appreciate the Governor’s commitment to business growth, workforce development, and investments in infrastructure, making New Jersey a competitive regional powerhouse means forging a difficult path ahead — and this budget proposal won’t get us there.
Continue reading Increased Taxes and Spending Won’t Help New Jersey Grow
the staff of the Ridgewood blog
Trenton NJ, Senator Anthony M. Bucco called for Governor Phil Murphy to provide clarity on Executive Order 100 which gives broad new powers to the New Jersey Department of Environmental Protection (NJDEP) to deny virtually any type of development due to undefined “climate change considerations.”
Q3 GDP Report: NJ Reports Solid Growth, But Sustainability in Doubt
Analysis by Charles Steindel, Ph.D. for GSI
MORRISTOWN NJ, The Commerce Department’s Bureau of Economic Analysis (BEA) today announced that New Jersey’s Gross Domestic Product (GDP)—a measure of the aggregate output of all goods and services produced within the state—grew at a rate of 2.3% in the third quarter of 2019, leading the Northeast region, and slightly ahead of the revised U.S. rate of 2.1% for the quarter. However, the strength of New Jersey’s economy in light of weak growth in recent quarters and a review of the underlying details of today’s report, is anything but assured.
Continue reading Garden State Initiative : NJ Reports Solid Growth, But Sustainability in Doubt
December 15,2017
the staff of the Ridgewood blog
Washington DC , President Trump is touting his administration’s progress on deregulation, according to the President for every one new regulation an amazing 22 are eliminated. Trump said the goal is to get the stack of regulations smaller than that of the 1960’s.
According to the Wall Street Journal ,” the biggest change has been in U.S. economic policy, notably the Trump Administration’s deregulatory efforts and the boost they have given business confidence.”
The Labor Department reported Friday December 8th that the U.S. created 228,000 net new jobs in November, in the latest sign that the American economy is growing at a healthier pace.
The Bureau of Labor Statistics (BLS) shows that nonfarm payrolls grew by 228,000 jobs in November, with gains across all sectors except information and utilities. The pace in November is higher than the 2017 average of 174,000 per month, and 1.7 million jobs have been added since January. The November unemployment rate matched October’s rate of 4.1 percent, which was the lowest rate in more than 16 years (since December 2000).
For Hispanic workers, the 4.7 percent unemployment rate in November was the lowest in at least 44 years.
Meanwhile, the Commerce Department revealed Wednesday that the GDP expanded at a 3.3 percent rate in the third quarter after being adjusted for seasonal factors and inflation. That’s the first time since 2007 that quarterly economic output exceeded the Congressional Budget Office’s estimate of its “maximum sustainable level,” the Wall Street Journal reported .
December 14,2017
the staff of the Ridgewood blog
Wayne NJ, the Goal Is To Promote Economic Growth & Candidates Who Will Improve Economy. Citing the need for immediate improvement of state and regional economies, more pro-business policies and effective tax policies, New Jersey businessman Joseph Caruso has launched a new Political Action Committee- – The Organization for Economic Growth (OEG ) https://www.NJOEG.com).
The NJOEG will serve as an advocate for economic policies that create jobs and spur investment, as well as a supporter of candidates for elected office who back pro-growth policies, says Caruso, who will serve as chairman of the organization.
Caruso, who will serve as chairman of the organization said, “The birth of the PAC comes from the large number of people I meet in and out of business who are completely frustrated by the state’s failed taxation and economic policies. There is a need for an organization that can turn that frustration into action that will change the economic climate of New Jersey.”
Caruso said that many elected officials from both parties seem oblivious to the economic peril that New Jersey is in and they fail to comprehend the burden that both homeowners and business owners live under and what will happen unless drastic changes are made.
“It is shocking to me and many other business people that there are legislators and other elected officials who continue to advocate for higher taxes and more regulations while ignoring the state’s lousy business reputation, its existing tax burden and its monstrous debt problems,” said Caruso, a partner in a corporate consulting firm.
“Our goals is to work with well intentioned officials on both sides of the aisle to help create a path to economic prosperity that both Democrats and Republicans can support,” added Caruso
ATTRACTING MILLENIALS
The OEG has attracted bright, young and energetic talent like: John DePinto of Bloomfield, who will serve as Vice Chairman, Ray Cottiers of New Milford will be the Director of Strategic Services and Alex Cucciniello of Mahwah will run the day to day operations as the Executive Director.
“If New Jersey doesn’t alter course soon, the jobs of the future economy – the jobs that will employ our Millennials — will be gone, followed by catastrophic economic consequences for the state,” added DePinto. “I’m a young professional and I would like to raise a family New Jersey, but currently that does not seem practical– or possible.”
Cucciniello said the OEG will serve as a information center to help educate the public and elected officials on economic and tax issues and to be a voice against the state’s bad economic policies.
“Much of the readily available economic information that is published or broadcast about our state and region is politically charged and often misleading. Our goal is to distill information from people actually working in business and interact with the media in a constructive way that will lead economic change,” said Cucciniello, who formerly worked in Washington D.C. as an intern in the White House Office of Political Affairs.
“I also believe people need to fully understand the consequences of New Jersey’s continued bad economic policies,” added Cucciniello.
Cottiers stated, “many public officials who want to improve the economy lack the information or the forum to persuade their constituents or colleagues about the best course to follow. Part of our mission will be to provide data to officials who are seriously committed to breaking down the barriers to economic growth. And part of our mission will be to be a the voice — across various media platforms — that argues against policies that harm businesses.”
The new Organization will host its initial fundraising event in January; details will be available shortly. For more information visit NJOEG.com and follow and like us on Facebook at Organization for Economic Growth (@StrengthThroughIndustry).
November 29,2017
the staff of the Ridgewood blog
Ridgewood Nj, The United States economy has been in a period of encouraging, consistent growth for several years now. According to 24/7 Wall Street ,the U.S. GDP has now increased uninterrupted for 14 straight quarters. The stock market continues to hit new all-time highs with yesterday marking the 61st closing high since Donald Trump became president , and the unemployment rate fell to 4.1% in October, the lowest it has been since the year 2000. Based on the most recent quarterly estimates from the Bureau of Economic Analysis, 24/7 Wall St. reviewed the growth or lack there of, of American state economies over the past three years more or less the time since the last nationwide quarterly economic contraction. Nationwide, GDP grew by 2.2% over the three years ending in the second quarter of 2017.
Using data provided by the Bureau of Economic Analysis, 24/7 Wall St. ranked all 50 U.S. states based on percent changes in real GDP growth in all 50 states from the second quarter of 2014 through the second quarter of 2017. and the U.S. Figures provided are adjusted to account for yearly inflation. GDP figures published by the BEA are preliminary and subject to annual revision. Figures on poverty rate, median household income, and educational attainment came from the American Community Survey. Employment and unemployment metrics were provided by the Bureau of Labor Statistics
New Jersey came in a better than expected 38th place while its neighbor to the north Connecticut came in 46th . New York came in 32nd and Pennsylvania came in a a respectable 27th.
38. New Jersey
> 3-year GDP growth: +0.9%
> Q2 2017 GDP growth: +2.3% (tied — 16th smallest increase)
> Fastest growing industry: Agriculture, forestry, fishing, and hunting
> Fastest shrinking industry: Utilities
> 3-year employment growth: +3.4% (17th smallest increase)
46. Connecticut
> 3-year GDP growth: +0.3%
> Q2 2017 GDP growth: +1.4% (6th smallest increase)
> Fastest growing industry: Mining
> Fastest shrinking industry: Nondurable goods manufacturing
> 3-year employment growth: +4.2% (23rd smallest increase)
32. New York
> 3-year GDP growth: +1.4%
> Q2 2017 GDP growth: +1.2% (tied — 4th smallest increase)
> Fastest growing industry: Information
> Fastest shrinking industry: Nondurable goods manufacturing
> 3-year employment growth: +2.7% (13th smallest increase)
27. Pennsylvania
> 3-year GDP growth: +1.6%
> Q2 2017 GDP growth: +2.5% (tied — 21st smallest increase)
> Fastest growing industry: Mining
> Fastest shrinking industry: Durable goods manufacturing
> 3-year employment growth: +2.5% (10th smallest increase)
September 28,2017
the staff of the Ridgewood blog
Washington DC, The U.S. economy grew at a faster pace than previously estimated in the second quarter, recording its quickest growth in more than two years.
Gross domestic product (GDP) increased at a 3.1 percent annual rate in the April-June period, the Commerce Department said in its third estimate on Thursday. The upward revision from the 3.0 percent pace of growth reported last month reflected an increase in inventory investment.
Growth last quarter was the fastest since the first quarter of 2015 and followed a 1.2 percent pace of growth in the January-March period. Economists had expected that second-quarter GDP growth would be unrevised at a 3.0 percent rate.
Rebuilding in Texas after Hurricane Harvey is expected to boost growth in the fourth quarter and in early 2018. Growth estimates for the July-September period are just above a 2.2 percent pace.
With GDP accelerating in the second quarter, the economy grew 2.1 percent in the first half of 2017.
President Trump on Wednesday proposed the biggest U.S. tax overhaul in three decades, including lowering the corporate income tax rate to 20 percent and implementing a new 25 percent tax rate for pass-through businesses such as partnerships to boost the economy.
Growth in consumer spending, which makes up more than two-thirds of the U.S. economy, was unrevised at a 3.3 percent rate in the second quarter as an increase in spending on services was offset by a downward revision to durable goods outlays. Consumer spending in the second quarter was the fastest in a year.
Amid robust consumer spending, businesses accumulated a bit more inventory than previously reported to meet the strong demand. Inventory investment added just over one-tenth of a percentage point to GDP growth in the second quarter. It was previously reported to have been neutral.
Growth in business spending on equipment was unchanged at a rate of 8.8 percent, the fastest pace in nearly two years.
Investment on nonresidential structures was revised to show it increasing at a 7.0 percent pace, up from the previously reported 6.2 percent rate.
Both export and import growth were revised slightly lower. Trade contributed two-tenths of a percentage point to GDP growth last quarter. Housing was a slightly bigger drag on growth in the last quarter than previously reported, subtracting 0.3 percentage point from output.
No More Bank Bailouts, Accountability for Wall Street and Washington, Economic Growth at the Core of Republican Plan
April 20,2017
the staff of the Ridgewood blog
WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) today announced that the Committee will hold a hearing to discuss the Financial CHOICE Act on Wednesday, April 26 at 10:00 a.m.
“Republicans are eager to work with the President to end and replace the Dodd-Frank mistake with the Financial CHOICE Act because it holds Wall Street and Washington accountable, ends taxpayer-funded bank bailouts, and unleashes America’s economic potential,” said Chairman Hensarling. “We want economic opportunity for all, bailouts for none. We want real consumer protections that will give you more choices. Our solution grows the economy from Main Street up, creates more opportunities for working families to get ahead, and levels the playing field with no more Wall Street bailouts.”
CHOICE stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.
The ideas and principles behind the Financial CHOICE Act were first unveiled last June by Chairman Hensarling in a speech to the Economic Club of New York. The Financial Services Committee approved the Financial CHOICE Act in September. The Committee will discuss an updated version of the bill at Wednesday’s hearing.
“Supporters of Dodd-Frank promised it would lift the economy, end bailouts and protect consumers. Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices. Dodd-Frank failed to keep its promises to the American people, but we will work with President Trump to follow through on his promise to dismantle Dodd-Frank. That’s not what Wall Street wants, but it is what hardworking Americans need to have a healthier economy with more opportunities so they can achieve financial independence.”
FINANCIAL CHOICE ACT AT A GLANCE:
BANKRUPTCY, NOT BAILOUTS
No more bailouts: that’s at the core of our plan and our commitment to hardworking taxpayers. With bipartisan changes to our bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.
ACCOUNTABILITY FOR WALL STREET AND WASHINGTON
The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading. Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time we hold Wall Street accountable, the Financial CHOICE Act also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.
STRONGLY CAPITALIZED BANKS
Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size. That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.
The Financial CHOICE Act is based on two important principles: First, all banks need to be well-capitalized and, second, community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that if they get in trouble, taxpayers won’t be forced to bail them out. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis. Of the miniscule percentage that did fail, none posed a systemic risk.
EMPOWER AMERICANS
The Financial CHOICE Act grows our economy from Main Street up. Dodd-Frank tries to control the economy from Washington down. The Financial CHOICE Act will help get credit and capital into the hands of working men and women to fuel their economic growth.
by Congressmen Scott Garrett
Ridgewood NJ, THE MOST important financial decisions in life aren’t made in Wall Street board rooms or by bureaucrats in Washington — they’re made around kitchen tables. Around these tables families look at their bills, their savings, their job prospects and their personal finances and try to figure out how to get ahead in this terrible economy. Unfortunately, the Dodd-Frank Act, the law that was enacted in 2010 with huge promises of economic recovery, has stifled the financial success of families, businesses and entrepreneurs.
And while you might not know Dodd-Frank by name, you have certainly felt its impact in your wallet. The architects of Dodd-Frank crafted an onerous maze of regulations and rules that put Washington priorities ahead of the needs of American families. Since Dodd-Frank became law, free checking has largely disappeared, and the American Dream has become more difficult to make a reality — especially if you’re self-employed — since it’s become harder to obtain a loan to buy a new house or start a business. In fact, the rate of new business start-ups is near a 20-year low, and last month’s jobs report was the worst since 2010.
Not only has Dodd-Frank made it harder for Americans to get ahead, it makes yet another bailout of Wall Street more likely. During the 2008 crisis, the taxpayers were forced to bail out big banks considered “too big to fail.” Today, those banks are bigger, and Dodd-Frank enshrines in law the expectation that taxpayers will once again be on the hook for costly bailouts.
I’m joining my colleagues on the House Financial Services Committee to propose a blueprint for American financial success. The Financial CHOICE Act — which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs — is designed to revitalize economic growth through competitive capital markets. This plan will fix the problems of Dodd-Frank by increasing punishment for crooks, ending taxpayer bailouts, scaling back poorly designed regulations and holding Washington accountable to We the People.
Penalties for fraud
To better protect consumers, the Financial CHOICE Act imposes the toughest — and most expensive — penalties in history for fraud and deception. The Securities and Exchange Commission will have new authority to increase punishment for repeat offenders and link fines to investor losses. This will make sure that fraudsters who stole or scammed huge amounts of money from inno-cent people won’t get just a slap on the wrist for their crimes.
Our plan offers economic opportunity for all and bailouts for none. Dodd-Frank made promises to end “too big to fail” that were never kept. We can end this cycle by forcing failing institutions to file for bankruptcy. Our plan reforms the bankruptcy code to protect taxpayers and instill much-needed market discipline. Taxpayers shouldn’t be on the hook for the mistakes of big banks and Wall Street, and under our plan they never will be again.
One of the key tenets of the Financial CHOICE Act is an optional “off-ramp” for financial institutions to break free of Washington’s one-size-fits-all rules. But the condition for being free of excess regulation is a strong capital standard, which means that banks will be forced to hold assets to back up their liabilities. By passing the CHOICE Act, we can both manage liabilities and let banks do what they do best: invest in the next American Dream.
Washington desperately needs transparency. Dodd-Frank created bureaucracies like the Consumer Financial Protection Bureau that gave immense power to a single, politically appointed director who makes economic decisions on your behalf. The CFPB tells you what financial products you can have or not have because they think they know what’s best for you when it comes to loans, mortgages and car purchases.
Our plan makes the CFPB, and other unaccountable agencies, into bipartisan commissions. We would also require all financial regulations to undergo strict cost-benefit tests to make sure they’re not doing more harm than good. And we would change the system to ensure that all major financial regulations are approved by Congress before they are imposed on the American people.
Resistance by banks
I expect that it will be difficult to get support for bottom-up solutions like the Financial CHOICE Act in Washington. This plan is hated by big banks and crony capitalists that are all going to lose influence and power over the rest of America if this bill is passed. However, I believe that Congress can make this necessary reform with the support of people who are more concerned about the financial decisions made around kitchen tables than they are with protecting the interests of Washington insiders.
People in northern New Jersey don’t need economic reports to tell them that the economy is still in bad shape. We see it every day in our bank accounts and in our towns. Recovery can happen, and we can be prosperous again, but it has to start in our communities — not in Washington. The Financial CHOICE Act can help make that possible.
Rep. Scott Garrett, R-Wantage, serves New Jersey’s 5th Congressional District. He is chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises.
N.J. Democratic, Republican lawmakers unveil competing economic plans
DECEMBER 14, 2015, 7:30 PM LAST UPDATED: MONDAY, DECEMBER 14, 2015, 7:59 PM
BY SALVADOR RIZZO
STATE HOUSE BUREAU |
THE RECORD
Democrats and Republicans in the state Senate unveiled competing economic plans for New Jersey on Monday, with each side promising a lasting fix to the haphazard way the state has been funding major expenses such as pensions and road projects over the years.
The dueling plans are as ambitious as their details are hazy.
On the Democratic side, Senate President Stephen Sweeney outlined a plan to invest at least $1 billion over the next four years on transportation projects, school initiatives, new study commissions and a new “infrastructure bank.”
His plan calls for expanding pre-kindergarten to 17 school districts that do not now offer it; extending light rail service farther into Bergen County and widening the eligibility range for tax breaks on retiree income, raising the income limit for married couples from $10,000 to $100,000. Funding for higher-education scholarships also would grow.
But Senate Democrats did not include a funding mechanism; Sweeney said his proposal would spur enough economic activity to pay for itself, namely by enticing older residents to stay in-state instead of moving after they retire.
“This state has been starved of investment for too long, and we now need to refocus,” he said at a Statehouse news conference.
December 8, 2015
the staff of the Ridgewood blog
Ridgewood NJ, Senator Kevin O’Toole (R-Bergen, Essex, Morris, Passaic) said New Jersey’s addition of 15,200 private-sector jobs in October and an updated total of 24,100 new jobs in the past two months shows that Republican reforms are working and the state’s economic rebound would be enhanced with the advancement of more Senate Republican jobs policies.
“New Jersey is creating jobs at a fast pace under Governor Christie’s administration not seen in recent memory, thanks to ample reductions in red tape and our investments in real private sector job creation, workforce training and smart economic development,” said O’Toole, a member of the Senate Budget & Appropriations Committee. “Our unemployment rate has fallen nearly a full point this year to 5.4 percent, and in the months ahead we’re on track to recover all of the 258,000 jobs lost under the previous administration. Indeed, this is a far cry from what happened under the previous governors where taxes and fees were raised 115 times while the unemployment rate skyrocketed to 9.8 percent.”
O’Toole emphasized, “Not counting Great Recession years, the 15,200 private-sector jobs we created in October alone are more than twice the 7,400 private-sector jobs created in former Gov. Jon Corzine’s best year and more than six times the 2,400 jobs created in Gov. Corzine’s second-best year.”
Senator O’Toole also pushed for the continued advancement of the Senate Republican’s 36-bill package to jumpstart job creation and economic growth without costing taxpayers extra money. So far, 15 of the bills have garnered Senate Democrat sponsorship; 12 have garnered Assembly Democrat sponsorship; the Senate has advanced or fully passed 11 of them and the Assembly has advanced or passed a number of them as well, and the governor just signed into law an innovation bill to help start and grow small businesses by allowing private online investments.
“The investments and incentive programs we’ve enacted under this governor to attract and retain job creators are working, and must continue in a transparent and accountable way until legislative Democrats allow votes on bills to make New Jersey’s nation-high taxes competitive with other states,” O’Toole said. “This new state jobs report is positive and we need to continue that momentum built under Governor Christie by passing Senate Republican solutions to lower costs of doing business and cut even more red tape.”
