Rick Scott Claims Responsibility For Economic Recovery; Experts Debunk

Scott's Latest Claim: 'Poppycock' And 'Utter Nonsense'
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MIAMI, FL - SEPTEMBER 19: Florida Governor Rick Scott speaks during a town hall meeting with the Agency for Persons with Disabilities (APD) at the Spelios Center, one of Sunrise Groups adult day training centers, to discuss issues impacting the greater disabilities community on September 19, 2013 in Miami, Florida. The Florida Governor leads the state that has refused to set up its own health care exchange in preparation for the Affordable Care Act, which is set to begin enrollment on October 1. Republican leaders in Florida have also highlighted concerns about the navigators, federally funded workers who will help enroll people in health plans. (Photo by Joe Raedle/Getty Images)

TAMPA -- Florida Gov. Rick Scott is broadening the central message of his re-election campaign: Beyond claiming responsibility for Florida's recovery from the Great Recession, he now blames the downturn on his predecessor and likely 2014 opponent, Charlie Crist, and former Chief Financial Officer Alex Sink.

Sink and Crist scoff at Scott's claims, which don't pass muster with economic experts, either.

"Poppycock" was Sink's response; David Denslow, retired University of Florida economist, called Scott's contentions "without empirical foundation."

Scott has made his campaign message clear, before the race gets underway, in repeated speeches and daily news releases: He contends that onerous state taxes and regulations in place before he took office caused Florida's job losses, and his own pro-business governing formula of lower taxes and cutting regulations has pushed Florida's recovery ahead of the nation's.

Economic data don't back that up.

Economists say national economic policies and the business cycle have far more influence on the state's economic condition than local or state tax or regulatory policies. They also say Florida doesn't appear to be recovering faster than the rest of the country.

The state is recovering, but it still trails national averages in growth of personal and per-capita income and growth of its domestic product. Drops in the unemployment rate have occurred largely because workers have stopped looking for work, according to the state Legislature's Office of Economic and Demographic Research.

***

Still, there's evidence Scott could make political headway with his argument, fueled by the scores of millions he plans to spend to push his message during his campaign.

At least one poll indicates voters may give state officials more credit than the federal government if the economy is going well, or blame state officials more if it's going badly.

In Quinnipiac University Polling Institute surveys in early 2012, voters who thought the economy was improving gave Scott more credit than President Barack Obama, by large margins. Those who thought the economy wasn't improving blamed Scott more than Obama.

If Florida's recovery continues, that suggests Scott could benefit politically.

Quinnipiac spokesman Peter Brown, however, said the poll "should certainly be taken with several grains of salt," because only those who thought the economy was improving or getting worse -- just half the respondents -- were asked the question.

In at least two recent speeches, Scott has said Florida should have been immune to the global economic meltdown that began in 2008.

"We never should have had that downturn," Scott said in Tampa on Wednesday to highlight expansion of a health insurance services firm.

"We shouldn't have lost those 832,000 jobs before I became governor," he told reporters after another recent appearance.

"If you think about our country where all of our states are competing for jobs, we're a state that has no income tax ... we're a right-to-work state, no business tax, we've got the expansion of the Panama Canal, the gateway to Latin America, so if you think about that, we shouldn't have had that downturn," he said.

Asked what his predecessors did to cause it, Scott didn't answer. Instead he repeated his campaign message that before he took office, Florida lost hundreds of thousands of jobs, and some have since returned.

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The Republican Party of Florida, which acts as a campaign surrogate for Scott, has made the charge more explicitly. "The Crist-Sink Team Lost 832,000 Jobs From January 2007 To January 2011," it said in a June news release, referring to a time when Crist was governor and Sink was state chief financial officer. Sink, whom Scott defeated to win office, was considering another run until she dropped out Friday.

But Denslow and other economists said Florida was a victim of the national financial collapse and blowup of the housing market. Other states with no income tax and right-to-work laws also suffered, he noted, and the Panama Canal expansion won't be completed until 2014.

"We couldn't have escaped," he said.

Economists mostly agree on the causes.

"The collapse of the housing bubble -- fueled by low interest rates, easy and available credit, scant regulation and toxic mortgages -- was the spark," said the 2011 report of the congressional Financial Crisis Inquiry Report on the crash.

Economist Sean Snaith of the University of Central Florida said the housing collapse and failure of securities backed by sub-prime mortgages "dried up housing financing and seized up financial markets. That was a global phenomenon. Trillions of dollars of wealth were just wiped away.

"No state could have been sheltered from events of that magnitude, let alone Florida, where the housing market was such a big part of the economy," Snaith said.

Crist's response to Scott's charges: "Just as I will not take credit for the global economic meltdown, I don't think the current governor should take credit for the recovery."

"This is utter nonsense. The idea that anything other than greed and fraud caused the global economic recession is just wacky."

Sink said her jaw "dropped to the floor" when she heard Scott's charge.

"This is a guy who claims he's a businessperson and he doesn't understand econ 101," she said. "When you have an economy like Florida that is so reliant on tourism, retirees and real estate, there is no control of our own economic future."

***

Florida's economic picture has improved in the last year. As Scott noted in an announcement Friday, the state's unemployment rate dropped to 7 percent in August and has been lower than the national rate for six months. But Florida isn't setting the pace for national recovery, according to studies by economists including those working for the state:

In 2012, the state had its third straight year of growth after two years of decline. But its 2.4 percent growth was below the national average of 2.5 percent, according to the state Office of Economic and Demographic Research.

Personal income grew 3.2 percent in 2012 -- less than the national rate of 3.5 percent -- and dropped 1.5 percent in the first quarter of 2012, ranking the state 39th.

Scott has repeatedly said Florida's unemployment rate had dropped more than any state in the nation while he was governor, from a high of more than 11 percent when he took office to 8.8 percent in late 2012. But most of that decline, the state economists said, was due to people dropping out of the labor force.

As of June, 2012, Florida had recovered only 13.5 percent of the jobs it lost in the Great Recession, while in the nation as a whole, the recovery rate was 34.6 percent, according to The State of Working Florida 2012, a report by Florida International University economists.

The FIU report also found that Florida ranked third in the nation in the number of workers forced to work part-time instead of full-time.

wmarch@tampatrib.com

(813) 259-7761 ___

(c)2013 the Tampa Tribune (Tampa, Fla.)

Visit the Tampa Tribune (Tampa, Fla.) at www.tampatrib.com

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Before You Go

Rick Scott Controversies
Doctored Newspaper Front Page(01 of19)
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Florida Governor Rick Scott's Facebook managers posted an image containing a doctored Miami Herald headline, prompting the paper's managing editor to demand it be removed.The post, since deleted from the Governor's social media page, swapped in the headline "New Law Helps Put Floridians Back To Work" in place of the paper's original headline from 2007, "Murders Highlight Rise In Crime In Guatemala" -- making it appear an editorial from the governor had run above the fold on the Herald's front page. (credit:AP)
Non-Transparent Transparency Program(02 of19)
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After Florida Governor Rick Scott encouraged journalists to access his emails through his transparency program Project Sunburst in lieu of filing public records requests, it was revealed that emails to his official email account weren't in fact included -- Project Sunburst was only displaying emails sent to a second account that appears on Florida Tea Party websites. As a result at least one news report included a positively-skewed view of Scott after his Lt. Governor made anti-gay comments. (credit:Getty)
"Prayers" In Public Schools(03 of19)
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Scott approved SB 98, which means that Florida students are now allowed to deliver "inspirational messages" that include everything from prayers to manifestos at mandatory school events. (credit:AP)
Refuses Affordable Care Act(04 of19)
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In a statement, the governor said the healthcare law would not aid economic growth in his state "and since Florida is legally allowed to opt out, that's the right decision for our citizens." (credit:AP)
Spain Gaffe(05 of19)
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Scott met with King Juan Carlos of Spain during his economic development mission and immediately managed to bring up the uncomfortable topic of the monarch's disastrous elephant hunting trip to Botswana. (credit:AP)
Ads On State Trails(06 of19)
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In the midst of old-growth live oak hammocks, wild orchids, and vistas of Lakes Wales Ridge in Lake Kissimmee State Park, Florida hikers may soon see signs boasting "Buster Island Loop, brought to you by Pollo Tropical."Governor Rick Scott approved a bill permitting advertising on state greenways and trails, which went into effect July 1, 2012. (credit:AP)
Voter Purge(07 of19)
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The Governor is in a legal battle with the U.S. Justice Department over the state's effort to remove non-U.S. citizens from lists of registered voters ahead of this year's presidential election. (Photo by Joe Raedle/Getty Images) (credit:Getty)
Reverses Ban On Dying Animals Artificial Colors(08 of19)
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Random Drug Testing(09 of19)
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49,000 Voters Discouraged From Polls(10 of19)
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Florida took center stage in the 2012 elections, when voters around the state had to wait in line at the polls for up to nine hours. Gov. Rick Scott (R) initially denied that there was any problem, saying it was "very good" that people were getting out to vote.But a new study shows that tens of thousands of people were actually discouraged from voting because of the long lines.According to an analysis by Theodore Allen, an associate professor of industrial engineering at Ohio State University, as many as 49,000 individuals in Central Florida did not vote because of the problems at the polls. (credit:AP)
Dismal Approval Rating -- Even Amongst GOP(11 of19)
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Most Florida voters, including Republicans, would like to see Gov. Rick Scott (R) challenged in 2014, according to a poll released by Quinnipiac University.More than half of voters said Scott didn't deserve a second term, and 55 percent, including 53 percent of Republicans, wanted another candidate to challenge the governor in a primary. Scott's approval ratings, though improved from 2011, were also underwater. (credit:AP)
Cost Taxpayers $1 Million In Legal Fees(12 of19)
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Governor Rick Scott's long list of controversial legislation -- including tweaking the state's pension plans, require drug testing of those on welfare, cutting teachers' pay, and purging voters -- may have cost Florida taxpayers upwards of $1 million in legal bills.The latest legal bill tallies at $190,000 after a federal court ruled that Florida has to pay the attorney fees as Scott fights for the right to drug test state workers.The Orlando Sentinel found that Scott has already cost taxpayers nearly $900,000 in attorney fees as he fights for his conversational legislation, making this latest legal bill tilt the tally over $1 million. (credit:AP)
First-Time Drug Offenders(13 of19)
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Florida Governor Rick Scott vetoed a widely popular bill that would send certain non-violent drug addicts to treatment after serving half their sentences.“He said it was a 'public safety’ issue. No it’s not,” said bill sponsor Sen. Ellyn Bogdanoff (R-Fort Lauderdale) according to the Miami Herald. “These are non-violent drug offenders.”The bill, a rare common sense favorite during a legislative season that saw Scott approve dying animals and Jay-Z lyrics debated on the House floor, was opposed by only four state lawmakers. (credit:AP)
Docs. vs. Glocks(14 of19)
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Gov. Scott pushed back when a federal judge ruled a law gagging Florida physicians from asking patients if they owned guns unconstitutional. U.S. District Court Judge cited the government-imposed gag order as a violation of free speech protection under the First Amendment. (credit:AP)
Scott's Boletera?(15 of19)
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Campaign finance reports show Florida Governor Rick Scott -- who framed recent evidence-defying efforts to purge state voter rolls, limit registration and reduce early voting hours as a protection of "honest" elections -- hired an alleged Miami-Dade absentee ballot broker during his 2010 gubernatorial campaign.Scott's campaign paid a $5,000 "contract labor" fee to 74-year-old Hialeah resident Emelina Llanes, who was identified as a so-called boletera to the Miami Herald and by El Nuevo Herald, multiple Miami-Dade watchdog blogs, and former Hialeah Police Chief Rolando Bolaños. (credit:AP)
Closes TB Hospital(16 of19)
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In an austerity measure, Florida Gov. Rick Scott and state representatives voted to close A.G. Holley State Hospital in Palm Beach County, the state's only tuberculosis hospital, citing a decline in Florida TB cases since 2010.But according to a report by the Centers for Disease Control and Prevention, Florida was suffering one of the largest uncontained TB outbreaks in 20 years -- and the largest spike nationwide -- resulting in 13 deaths and 99 illnesses, mostly among the homeless. (credit:AP)
Gives Out Number For Sex Hotline(17 of19)
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Vetoed Funding For Mass Animal Deaths Research(18 of19)
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The Harbor Branch Oceanographic Institute at Florida Atlantic University was counting on $2 million in state funds to study the dead pelicans, manatees, and dolphins piling up at Indian River Lagoon, described as a 'killing zone.' Scott vetoed the funding. (credit:Getty Images)
Sped Up Death Penalty(19 of19)
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Scott signed a law that will speed up Florida's execution process. The governor now must sign a death warrant within 30 days of the Supreme Court certifying that an inmate has exhausted all appeals. The execution date must be six months from the date of the warrant. (credit:AP)