The Sword of Damocles Hangs Over Arkansans

by Bill Smith: Arkansans are being confronted by the conditions reminiscent of the Sword of Damocles hanging by a tread over the head Damocles placed there by the Tyrant Dionysius (metaphorically the government).

The ARRA News previously reported on Arkansans facing one of the largest premiums  in America under Obamacare in the United States.  "The WSJ found premiums would increase under Obamacare by 613% in Little Rock, Arkansas . . ."  Some  employers in Arkansas have already opted to reduce their employee health insurance.  This is especially true at fast food businesses. I have interviewed both owner who have reduced hours and employees who are now working two or three jobs to make ends meet.

On the other side of the equation, Arkansas is facing an "unprecedented contraction of the civilian labor force"  per the Arkansas Policy Foundation. Greg Kaza, Executive Director of the foundation in a recent report identified that  the "Arkansas' civilian labor force -- all employed and unemployed Arkansans -- is contracting in an expansion, an unprecedented development in state labor market records that date to the mid-1970s."

His report also identified that "Arkansas' labor market is weaker than past recessions when the force expanded or contracted by fewer workers."  He noted that "The simplest explanation for the unprecedented contraction of Arkansas' civilian labor force is that economic policies are not working. Discouraged workers are leaving the work force because they cannot find employment."

While this may be true, one wonders how many workers are leaving for jobs in other states. Note that the "unprecedented contraction in civilian employment " in Arkansas is not happening in the  five of the six  states bordering Arkansas.  A Population Survey by the BLS showed that the civilian labor force in five of six surrounding states expanded last year. These states are Texas, Tennessee, Louisiana, Missouri and Oklahoma."

In a wind-chill survey, revealed that numerous people were working out of state.  Note worthy were the number of Ozark area males working both out of state and out of country in the oil industry.   Arkansas does have a history of its workers leaving Arkansas for employment.  Unfortunately, a significant number of these workers do not return at least in the short term.  Why work in more tax friendly states and keep one foot in Arkansas or your family in Arkansas only to have to pay Arkansas taxes verses no or less income tax in the state where you are employed?

It was interesting to easily find male Arkansans working off-shore in the oil and gas industry in places like Africa, the Middle East.  Others had relocated to work in the oil fields of North Dakota, Alaska and other states.   Also note, were the significant number of Arkansans with  technical and computer related skills or degrees recruited by out of state businesses.

Regardless, both Obamacare higher premiums and contraction of the civilian labor force will impact on all Arkansas families.  With this contraction of the civilian labor force, a even greater tax burden will be on Arkansans to pay for the expanding proportion of labor force employed by the government sector (State, County, City, School districts).

The Sword of Damocles indeed hangs over Arkansas!
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William 'Bill' Smith, Ph.D., is editor of the ARRA News Service. He is a retired professor and retired Air Force officer.  He founded a Center for Business and Industry for an Arkansas University, was a Fortune 50 business consultant and served as an Arkansas Quality Award examiner. He has advised numerous conservative candidates for Congress and State offices and  an award recognized blogger.  Follow him on Twitter or Facebook

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