Tuesday, April 11, 2006

Seneca And Hughes Brief NJ Senate Budget Committee

From the AP courtesy of the Record/Herald:

Experts say state losing key jobs

New Jersey's economy has been expanding more slowly and weakly than the rest of the nation as the state loses key, high-paying jobs, two Rutgers University economists told state senators on Monday.

Rutgers professors Joseph Seneca and James Hughes told a Senate budget committee it must consider how its tax and spending decisions influence the economy as lawmakers mull Governor Corzine's nearly $31 billion budget proposal and its $1.9 billion in proposed tax increases.

"The new millennium has not been particularly kind to the New Jersey economy," Hughes said.

Seneca and Hughes told senators how the state, once a leader in telecommunications and pharmaceutical fields, is losing vital jobs. Increased taxes could cause businesses and high-wage earners to pack their bags, the men said.
...
"The testimony this morning is nothing short of devastating," said Senate Minority Leader Leonard Lance, R-Hunterdon. "New Jersey is in a terrible economic situation."
...
Seneca said statistics that show New Jerseyans are among the highest earners in the nation mask income gains in other states, expensive state housing and unappealing job trends. For instance, he said the state in recent years has lost 118,000 high-paying jobs and replaced them with 113,000 average-paying jobs in education, health care and food services.

"A very lopsided and undesirable trade-off," Seneca said.
...
"We can no longer take our economic and technological well-being for granted," Hughes told senators.

21 Comments:

Blogger chicagofinance said...

We've been discussing this for weeks. Ask many people who worked in the affected fields, and they will confirm it for you. Even more importantly, ask educated young people where the opportunities are. NJ is still running, but on momentum only, soon to be fumes.

4/11/2006 10:44:00 AM  
Anonymous Anonymous said...

Hi paying jobs leaving.

Bad news for NJ housing prices.

Wait another 12 months and negative sentiment will be all over housing. Sellers will be wishing they sold earlier as the panic kills prices.

4/11/2006 10:46:00 AM  
Anonymous Anonymous said...

Housing Bust!

Saw another house DOM 60 days lowered price again.

The trend is down.
BOOOOYAAAAAH!

Bob

4/11/2006 10:50:00 AM  
Anonymous Anonymous said...

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4/11/2006 11:14:00 AM  
Anonymous Anonymous said...

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4/11/2006 11:14:00 AM  
Anonymous UnRealtor said...

"For instance, he said the state in recent years has lost 118,000 high-paying jobs and replaced them with 113,000 average-paying jobs"


Duh. No surprise there, all those top jobs have been "outsourced" to India.

And wait another decade, as a billion people in China start getting into the act. Instead of Chinese workers making $30 a week sniffing glue all day while making sneakers and other widgets, they'll be making $40 a week while building the computer applications that run our banking and commerce industries.

We're selling out the long term future of our country for a short term boost in the corporate "bottom line."

Hopefully, people will wake up soon.

The top jobs aren't leaving NJ, they're leaving the country!

4/11/2006 11:32:00 AM  
Blogger delford said...

delford: I have been trying to talk to people about this, but everybody in my area appears to be dead. All is well, and we will get lots and lots of NY'ers to come to NJ, and they do not care about property taxes, and high prices they will pay whatever they are.

I am serious, this is peoples mindset. I hate to say it, as a native of NJ, but NJ people are some of the most stupidest most gullible people I have met.

4/11/2006 12:10:00 PM  
Blogger pesche22 said...

just like the taxpaper is being looted,,, so is the state.

one should really be looking elsewhere for living arrangements.

the cost here is not only high but
its the way we live. North jersey
is like a foreign country.

and the whole state is not far behind. it will wind up like a
thrid world country.

4/11/2006 12:55:00 PM  
Anonymous Anonymous said...

It's funny how the dumb young college students have decided immigration is such an important issue when they are to stupid to realize the IOU's piling up from their elders and say nothing about it.

4/11/2006 12:58:00 PM  
Blogger Shailesh Gala said...

Does anyone know which stations / rail lines will get improved due to this allocation? These towns will be better for future house purchase decision.

State lists agenda of transit projects

Funding for NJ Transit that totals $1.31 billion, including money to replace 230 train cars and rehabilitate another 148.


Repairs to at least 70 bridges, including the rehabilitation of the Newark Drawbridge, which is more than 100 years old.


Improvements to 16 rail stations, including the completion of a Trenton station renovation and upgrades at Metropark, Edison, Newark Penn Station and New York Penn Station.

Design and construction funding for more than 4,300 parking spaces at area train stations, including 1,100 in Wayne, 700 at Edison and 600 at South Amboy.

4/11/2006 01:51:00 PM  
Blogger chicagofinance said...

NNJ RE - let me use the Arthur's Steakhouse reference [Hoboken, Morris Plains, Emerson, North Brunswick].

The reputation of Arthur's is "$10 and you get a big steak". That was true in the 1990's.

Well, what happened?

Arthur's was mobbed ALL THE TIME.

So what did they do? THEY RAISED PRICES

To $12, $15, $17 now $19. Don't get me wrong, if you enjoy the atmosphere it is nice, but a lot of people go to Arhtur's now and say "I don't get it. What is the big deal?" - and they are right.

It used to be good, but not great, food for ridiculously low prices made for tremendous value. Now we have good, but not great, food for regular prices, and it completes with Outback Steakhouse. What is the big deal?

Well, 10 years ago, it used to be a good deal, but prices went up and ehh......

I think you can make the same argument about NNJ RE. Except make the steak $30.

4/11/2006 02:12:00 PM  
Anonymous Anonymous said...

I remember getting a steak at Arthur's for $14 about 5 years ago. It is now $20. 40% inflation in 5 years? Sounds about right.

4/11/2006 02:46:00 PM  
Blogger grim said...

Well then it's a good thing that inflation in food, housing, and energy aren't included in the core numbers, otherwise we would really be in trouble..

grim

4/11/2006 02:55:00 PM  
Anonymous Anonymous said...

I work everyday with clients in the Pharma industry, mainly scientists and business developemnt folks. I can say from my experience is that most of these people (including myself) would hightail it out of NJ in a heartbeat given the opportunity. Big Pharma is "defragmenting" and much of the early stage and creative development work is moving to venture firms and small R&D shops located a long way from NJ for obvious reasons. It used ot be conventional wisdom that one needed an operation in NJ because that is where the talent pool for the industry resided. Well, I now find myself travleing to RTP NC, San Diego, Vancouver, Dallas, Maryland, Seattle, etc, whereas only a few years ago we spent most of our time in the NJ area. The scientists and engineers who do this type of work are obviously leaving (and new recruiting is tough), as they have certainly figured out that its much better to make 80K in RTP or Austin and own a 4br house than it is to make 90K in NJ while renting a dump in Rahway and sending your kids to shitty schools. I'm sure this is a similar situation for the telecom and other industries. I can't even remember the last time I heard that a new venture firm would be starting up in NJ. Of course, if I were going to start a business, it certainly wouldn't be here.

4/11/2006 03:49:00 PM  
Blogger chicagofinance said...

Anon 4:49PM

yep.

4/11/2006 04:50:00 PM  
Anonymous UnRealtor said...

"Sizzler" used to have good steaks, and all-you-can-eat shrimp. Mmmm, we used to do some damage at that place.

4/11/2006 05:42:00 PM  
Blogger bairen said...

Some people in Jersey think we are crazy to move to North Carolina. I tell them they are crazy for staying. Our NC house would be 3x its price in Jersey. Prop taxes would at least 4x. Health insurance is much cheaper too.

They then say you can't make as much in NC as you do in Jersey. Big Deal. You don't need to. Take a 10 to 15% paycut and slash expenses by 30% or more. You'll wind up with more money in your pocket. They can't understand this concept.

4/11/2006 05:49:00 PM  
Anonymous Unrealtor said...

Bairen, I'm with you.

Did you take some drives down there to locate the town you liked? Are you going to Cary?

I'm thinking about taking an exploratory trip down there one long weekend.

Tell us more details, if you can.

4/11/2006 08:48:00 PM  
Blogger bairen said...

South Charlotte and its bedroom communities are very nice. Housing in a nice middle class area runs at $80 to $90 a sq ft. Huntersville and Concord have a huge population from the Northeast. In one new development we looked at literally everyone who lived there and the few dozen prospectees were all from NJ, LI, PA, with a few from Ohio. They were all shocked at the gorgeous houses you could get for $250k.

4/12/2006 07:01:00 PM  
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4/19/2006 12:35:00 AM  
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