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Article published Sep 27, 2005
Those who want to blame Gov. Mark Sanford for the state's economic woes need more to back up their claims than economic development numbers from previous administrations.
Many Democrats are claiming that Sanford and Commerce Secretary Bob Faith have not kept pace with the economic development efforts of the Gov. Jim Hodges administration. They cite economic development statistics from then and now.
But that's comparing apples and oranges. The statistics reported then meant nothing.
In 2002, when Republican officials were calling for the resignation of Charlie Way, Hodge's commerce secretary, citing a drop in job creation and investment numbers, the Herald-Journal noted in an editorial that the Commerce Department's numbers were "little more than public relations" and did not represent the truth about the state's economy.
The statistics generated by the Department of Commerce at the time represented only job growth without subtracting lost jobs. They reflected some industrial expansions that involved equipment only without creating any jobs. They also did not recognize that many announced expansions never occurred.
Many of the statistics used by the Commerce Department at the time also involved a voluntary survey that was circulated to Palmetto State industries each year. The completion of these surveys was spotty, and the results were less than unreliable.
Since Faith took over the Department of Commerce, he has addressed some of these problems with job creation and economic development statistics, particularly the use of the voluntary
survey. He makes a believable case that when adjusted for these changes, the Sanford administration's numbers hold their own with historical trends.
The state's economy and finances should be a major issue in next year's elections. These issues should be faced by the candidates for governor and for the General Assembly. Sanford and current lawmakers should run on their economic development records and their handling of the state's finances.
But a legitimate attempt to do so will rule out any use of old Commerce Department economic development statistics.