Lisa Simpson
Jun 10,2010
In: Foreclosure

The Situation in Maryland was Much Better During the Time of the Foreclosure Crisis

The economy is listening to neither Governor Martin O’Malley or to the candidate for the post of the governor Republican Robert L. Ehrlich Jr. Like a voter who has not made up his or her mind the economy is sitting on the fence with stagnation on one side and recovery on the other. The two candidates are bending over forward and backward to woo the economy and thence the people.

Ehrlich is complaining of “record tax increases.” The statement is not untrue. During the special session of legislature in 2007, O’Malley had greatly increased sales and personal income tax as also income taxes on the corporate sector. It was done simultaneously.

Ehrlich also point to “record unemployment”. That is untrue. In Maryland the highest rate of unemployment during February and March was 7.7%. In 1982 the unemployment rate of Maryland through the year was 8%.

Meanwhile O’Malley correctly says that recently thousands of new jobs were added during the last few months. It has been estimated that 24,100 jobs were added during the period stretching to April from February. This is “the highest three-month job gain for Maryland in at least 20 years.” Maryland had added 25,300 jobs during a stretch covering three months during 2000 and in a similar time span 40,900 jobs were added in 1996. This is according to the findings of U.S. Labor Department.

Thus the economy of Maryland does not seem to be on the side of any candidate. The latest news about jobs is definitely something to cheer about although most of it is because of a bouncing back result of the snowstorms in February. It had negated hiring and pushed down employment when people failed to get out of their houses to go to work. Maryland continues to be down by 100,000 calculating the peak that had been touched in 2008 February. The speed seems to be picking up however indicating growth.

Pundits are expecting that the job report of the nation for May will indicate the fifth running month of increase in employment for the nation. If that happens in all probability Maryland too will show positive gains.

It might not be obvious but the situation in Maryland was much better during the time of the foreclosure crisis. It has a generous share of federal funds and this generally protects it from the bumps.

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