Illinois’ average personal income growth trails neighbors and nation

The U.S. Bureau of Economic Analysis, or BEA, announced today that Illinois ranked 42nd in personal income growth in 2012.

The U.S. Bureau of Economic Analysis, or BEA, announced today that Illinois ranked 42nd in personal income growth in 2012. The average growth in personal income across the nation was 3.5 percent, compared with Illinois’ 2.5 percent growth during 2012.

The BEA’s analysis summarized the growth in personal income across the nation with the following statement:

Average state personal income growth slowed to 3.5 percent in 2012 from 5.2 percent in 2011, according to estimates released today by the U.S. Bureau of Economic Analysis. State personal income growth ranged from -0.2 percent in South Dakota to 12.4 percent in North Dakota. Inflation, as measured by the national price index for personal consumption expenditures, fell to 1.8 percent in 2012 from 2.4 percent in 2011.

Unfortunately, a closer look at the data reveals that 2012 was not an outlier for Illinois. Illinois’ personal income consistently grows at a slower rate than its neighbors and the nation.

Less income growth compounded over time means individuals are less able to afford cars, homes or other means to improve their standard of living.

If Illinois had at least kept up with the income growth of its neighbors or better yet, the nation Illinoisans would have bigger budgets today. In fact, if Illinois’ per capita growth in personal income had mirrored the national average since 1996, per capita personal income would be $46,584 more than $1,700 higher than today’s $44,815.

That means Illinoisans would have nearly $2,000 more today to save, spend and invest in their future.

Instead, Illinois’ low growth rate in personal income is confirmation that the Illinois approach high taxes and heavy regulations is failing.