I don’t know why the editors of the Wall Street Journal devote as much space to Illinois as they do. Other than it being an excellent example of a bad example, that is. In their latest critique they point to something that may not be immediately apparent—the young are departing Illinois in substantial numbers:
The Land of Lincoln is one of only three states, including West Virginia and Mississippi, to have lost population since 2010. But its population over age 55 has grown as Baby Boomers have aged. Over the last decade, Illinois’s median age has increased to 38.8 from 36.6, which puts it among the fastest aging states. Florida’s median age ticked up two years to 42.7.
The Land of Lincoln is one of only three states, including West Virginia and Mississippi, to have lost population since 2010. But its population over age 55 has grown as Baby Boomers have aged. Over the last decade, Illinois’s median age has increased to 38.8 from 36.6, which puts it among the fastest aging states. Florida’s median age ticked up two years to 42.7.
They point out several potential explanations but, clearly, their preferred explanation is Illinois’s tax system which tends to fall more heavily on young workers than on the elderly. I note that they don’t point out Illinois’s high sales tax. Chicago’s sales tax is, for example, the highest of any major city.
I think that the tax system is only part of the problem. Over the last several decades Chicago has lost much of its tech sector. We used to have any number of major technology companies here: Teletype, Bell & Howell, U. S. Robotics, Zenith, Motorola, Nuclear Data, I could go on and on. Most of those are either gone or mere shadows of their former selves—much of that activity is now in Taiwan. There have been multiple efforts over the years to attract tech startups to the Chicago area and all have failed.
Jobs more generally are a problem—we’ve lost a lost of our major employers over the years. Illinois, like much of the Midwest, used to be a manufacturing center. My own experience I think is typical. In 1979 nearly all of my customers were small manufacturers. By 1990 none of them were—they had all gone belly-up or been acquired.
I blame a lot of the problem on official corruption, cf. “pay to play”.
