Report: Maine growth modest (only due to decline in previous years)

AUGUSTA, Maine — The Maine Center for Economic Policy released its annual Labor Day report outlining the status of working Mainers and the state economy. Using 2007 U.S. government data (the most current available), "The State of Working Maine" reveals a picture of modest overall growth in Maine, coupled with limited income gains for typical Maine households.

Median household income in Maine saw an increase of some $1,200, rising by 2.7 percent in real terms to $45,888. Though a welcome advance for working Mainers, it is also clear that much of this increase will be erased by the sharp fuel and food costs already seen in 2008.

Before we get optimistic let me point out several things in this article...

coupled with limited income gains for typical Maine households...

Though a welcome advance for working Mainers, it is also clear that much of this increase will be erased by the sharp fuel and food costs already seen in 2008.

Maine's median household income falls far short of the 2007 national figure, $50,740. Low incomes remain a dominant and troubling feature of Maine's economic landscape.

"The larger story, however, is that Maine's median household income in 2007 is statistically indistinguishable from incomes seen in 2002, 2003, 2004 and 2005.

"It's only because incomes fell in 2006 that we can claim an increase for 2007. The fact is, after a five -ear period of national economic expansion, typical Mainers have made no measurable gains in their standard of living."

"On top of that, it looks like these 'good times' are over; conditions are likely to deteriorate in 2008, not improve," he said.

Maine's overall economy saw modest growth in 2007 as well. Generating $48.1 billion in goods and services for 2007, the Maine economy (state Gross Domestic Product) grew at a rate of 1.3 percent.

This rate of growth, however, lagged behind both regional (2.1 percent) and national (2.0 percent) rates for the year. Again, this is not the kind of robust gains one hopes to see during a period of extended economic growth.

Maine's 2007 GDP figure trails the state's average annual real GDP growth of 1.6 percent and the corresponding national figure of 2.6 percent during the 2001-2007 business cycle. Maine saw anemic job growth in 2007 of just 0.4 percent, far behind even the poor national showing of 1.1 percent growth.

"The Maine economy is making slow, steady progress," said Wise. "Unfortunately, that progress is not improving the lives of regular working families to the extent that it should. And, with very real uncertainties surrounding the national and global economic outlook, Maine and Mainers may well be facing harder times ahead."

In other words, things only got better because things were worse before and they will get worse again. The only reason Bangor managed to pull itself together this year was because of the new casino they built downtown. That wont last I guarantee you that. Just like when they brought the slot machines in. meanwhile another factory in Millonocket closing down thanks to higher energy costs and taxes as well as Union extortion and Governor Baldy is planning a sales tax hike. Unless we pass the TABOR act next year things WILL GET worse.

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