Mississippi Today
Nation’s debt default would hurt Mississippi’s already fragile jobs market more than most
Mississippi’s already lackluster employment numbers would be impacted more than most states if Congress does not raise the debt limit to pay the nation’s bills.
If there is a long-term lapse in the nation’s ability to pay its debt, the state could lose as many as 64,000 jobs or 5.4% of its workforce, according to a recent report by Moody’s Analytics, a subsidiary of Moody’s credit rating agency. In a short-term scenario, Mississippi would lose as many as 21,700 jobs or 1.23% of its workforce. Moody’s predicts only five states would lose a larger percentage of their workforce than Mississippi.
“The blow to the economy would be cataclysmic,” Moody’s said of a “prolonged breach” of the debt limit. Moody’s reasons that states that depend more on federal revenue would be the ones most negatively impacted if the nation defaults on its debt.
The Republican leadership of the House is currently refusing to raise the nation’s debt limit to pay past commitments made by Congress unless multiple cuts are made to future spending. Congressional leaders and President Joe Biden currently are negotiating a deal that will result in raising the credit limit. If no deal is reached, projections are the nation could be unable to pay its debt starting in early June.
The debt limit debate comes as Gov. Tate Reeves has touted the state’s job growth as part of his reelection campaign. The Republican Reeves will likely face Democratic Northern District Public Service Commissioner Brandon Presley in the November general election.
After April’s unemployment rate of 3.4% was announced for Mississippi, Reeves said: “Reaching a record low unemployment rate in back-to-back months speaks volumes to Mississippi’s momentum. Our education system is thriving, jobs are plentiful, and there are more opportunities than ever before. We’re making historic investments in workforce development and infrastructure and are attracting thousands of high-paying jobs to every region of the state. It’s a great day to be a Mississippian.”
Despite those low unemployment numbers, data from the U.S. Bureau of Labor Statistics reveals that there were fewer Mississippians working in April of this year than in April 2022. In April 2023, 1.212 million were employed — 8,089 fewer than were working a year ago.
April marks the seventh consecutive month where there were fewer Mississippians working than in the prior year, according to BLS data. There are 2,073 fewer jobs in April 2023 than in January 2020 when Reeves took office, though April 2023 numbers are still preliminary.
Employment numbers have been tenuous in Mississippi for some time. The state’s highest levels of employment occurred in May 2000, when there were 1.24 million employed. That number has never been surpassed.
Mississippi’s labor force participation rate also peaked in early 2000, when 62.85% of the people eligible to work were employed. The state’s rate is currently at 54.5% and trails the national average of 62.9% and all other states with the exception of West Virginia.
Responding to those numbers in the past, Reeves has said there are jobs available for people who want to work.
But those jobs pay less than jobs in other states. Mississippi has the lowest mean or average household income at $65,156 per year. Mississippi has trailed the rest of the nation in per capita income for decades, though Reeves points out per capital income has increased by 21% or $8,100 since 2019.
Wages in Mississippi, like in the rest of the nation, have been increasing since the pandemic. Personal income in Mississippi grew by an annualized rate of 4.1% between the third and fourth quarters of 2022. During the same period, the nation’s personal income grew by an annualized rate of 7.4%, according to the Bureau of Economic Analysis.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1997
Dec. 22, 1997
The Mississippi Supreme Court upheld the conviction of white supremacist Byron De La Beckwith for the 1963 murder of Medgar Evers.
In the court’s 4–2 decision, Justice Mike Mills praised efforts “to squeeze justice out of the harm caused by a furtive explosion which erupted from dark bushes on a June night in Jackson, Mississippi.”
He wrote that Beckwith’s constitutional right to a speedy trial had not been denied. His “complicity with the Sovereignty Commission’s involvement in the prior trials contributed to the delay.”
The decision did more than ensure that Beckwith would stay behind bars. The conviction helped clear the way for other prosecutions of unpunished killings from the Civil Rights Era.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
Medicaid expansion tracker approaches $1 billion loss for Mississippi
About the time people ring in the new year next week, the digital tracker on Mississippi Today’s homepage tabulating the amount of money the state is losing by not expanding Medicaid will hit $1 billion.
The state has lost $1 billion not since the start of the quickly departing 2024 but since the beginning of the state’s fiscal year on July 1.
Some who oppose Medicaid expansion say the digital tracker is flawed.
During an October news conference, when state Auditor Shad White unveiled details of his $2 million study seeking ways to cut state government spending, he said he did not look at Medicaid expansion as a method to save money or grow state revenue.
“I think that (Mississippi Today) calculator is wrong,” White said. “… I don’t think that takes into account how many people are going to be moved off the federal health care exchange where their health care is paid for fully by the federal government and moved onto Medicaid.”
White is not the only Mississippi politician who has expressed concern that if Medicaid expansion were enacted, thousands of people would lose their insurance on the exchange and be forced to enroll in Medicaid for health care coverage.
Mississippi Today’s projections used for the tracker are based on studies conducted by the Institutions of Higher Learning University Research Center. Granted, there are a lot of variables in the study that are inexact. It is impossible to say, for example, how many people will get sick and need health care, thus increasing the cost of Medicaid expansion. But is reasonable that the projections of the University Research Center are in the ballpark of being accurate and close to other studies conducted by health care experts.
White and others are correct that Mississippi Today’s calculator does not take into account money flowing into the state for people covered on the health care exchange. But that money does not go to the state; it goes to insurance companies that, granted, use that money to reimburse Mississippians for providing health care. But at least a portion of the money goes to out-of-state insurance companies as profits.
Both Medicaid expansion and the health care exchange are part of the Affordable Care Act. Under Medicaid expansion people earning up to $20,120 annually can sign up for Medicaid and the federal government will pay the bulk of the cost. Mississippi is one of 10 states that have not opted into Medicaid expansion.
People making more than $14,580 annually can garner private insurance through the health insurance exchanges, and people below certain income levels can receive help from the federal government in paying for that coverage.
During the COVID-19 pandemic, legislation championed and signed into law by President Joe Biden significantly increased the federal subsidies provided to people receiving insurance on the exchange. Those increased subsidies led to many Mississippians — desperate for health care — turning to the exchange for help.
White, state Insurance Commissioner Mike Chaney, Gov. Tate Reeves and others have expressed concern that those people would lose their private health insurance and be forced to sign up for Medicaid if lawmakers vote to expand Medicaid.
They are correct.
But they do not mention that the enhanced benefits authored by the Biden administration are scheduled to expire in December 2025 unless they are reenacted by Congress. The incoming Donald Trump administration has given no indication it will continue the enhanced subsidies.
As a matter of fact, the Trump administration, led by billionaire Elon Musk, is looking for ways to cut federal spending.
Some have speculated that Medicaid expansion also could be on Musk’s chopping block.
That is possible. But remember congressional action is required to continue the enhanced subsidies. On the flip side, congressional action would most likely be required to end or cut Medicaid expansion.
Would the multiple U.S. senators and House members in the red states that have expanded Medicaid vote to end a program that is providing health care to thousands of their constituents?
If Congress does not continue Biden’s enhanced subsidies, the rates for Mississippians on the exchange will increase on average about $500 per year, according to a study by KFF, a national health advocacy nonprofit. If that occurs, it is likely that many of the 280,000 Mississippians on the exchange will drop their coverage.
The result will be that Mississippi’s rate of uninsured — already one of the highest in the nation – will rise further, putting additional pressure on hospitals and other providers who will be treating patients who have no ability to pay.
In the meantime, the Mississippi Today counter that tracks the amount of money Mississippi is losing by not expanding Medicaid keeps ticking up.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
Mississippi Today
On this day in 1911
Dec. 21, 1911
Josh Gibson, the Negro League’s “Home Run King,” was born in Buena Vista, Georgia.
When the family’s farm suffered, they moved to Pittsburgh, and Gibson tried baseball at age 16. He eventually played for a semi-pro team in Pittsburgh and became known for his towering home runs.
He was watching the Homestead Grays play on July 25, 1930, when the catcher injured his hand. Team members called for Gibson, sitting in the stands, to join them. He was such a talented catcher that base runners were more reluctant to steal. He hit the baseball so hard and so far (580 feet once at Yankee Stadium) that he became the second-highest paid player in the Negro Leagues behind Satchel Paige, with both of them entering the National Baseball Hame of Fame.
The Hall estimated that Gibson hit nearly 800 homers in his 17-year career and had a lifetime batting average of .359. Gibson was portrayed in the 1996 TV movie, “Soul of the Game,” by Mykelti Williamson. Blair Underwood played Jackie Robinson, Delroy Lindo portrayed Satchel Paige, and Harvey Williams played “Cat” Mays, the father of the legendary Willie Mays.
Gibson has now been honored with a statue outside the Washington Nationals’ ballpark.
This article first appeared on Mississippi Today and is republished here under a Creative Commons license.
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