March 24, 2008
Re: What Was That About Corporate Welfare in RI?
The ranking to which Justin refers also gives us the edge in unemployment:
Rhode Island last month shed 1,200 more jobs, and payrolls shrank to their lowest level in nearly four years, a government report released today shows.The state unemployment rate ticked up one-tenth of a percentage point, to 5.8 percent, as the ranks of the unemployed last month grew to 33,400 — 5,000 more than in February of last year, according to the state Department of Labor and Training.
Nationally, payroll jobs last month declined by 63,000 and the unemployment rate rose to 4.8 percent.
Nor is the siphoning of jobs year upon year due to the notably unfriendly business and business tax climates created by the General Assembly the ideal preparation for a recession.
Rhode Island’s mounting job losses — estimated at 2,900 during the first two months of this year — come on the heels of revised data released last month showing that the state ended last year with a 5,200-job loss. It marked the first annual job decline since 2001, prompting economists to declare that Rhode Island is at the leading edge of a nationwide recession.
Back in the 1970's / early 1980's one often heard two statements regarding Rhode Island's economy vs. the national economy:
1) "When the national economy catches cold, the Rhode Island economy catches the flu."
2) "Rhode Island is usually one of the first states to go into recession; and one of the last to come out."
Multiple current studies rank Rhode Island among the bottom-five states for business climate.
Nothing has changed on Smith Hill: the General Assembly still sees its mission in life as pandering to the unions and welfare industry ... and busying itself with its own political corruption.
In fact, it's worse. The cumulative effect of the GA's mismanagement of our economy has resulted in an even larger permanent underclass of welfare recipients and billions of dollars of unfunded pension liabilities accrued at the behest of the unions.
Given a choice, no business (employer) in its right mind would locate in Rhode Island; and those that can move out (which haven't already) will encounter increasing reasons to leave over the coming years.
You can't maintain a vibrant economy on some old mansions in Newport; Waterfire and casinos.
That's why I've become convinced that Rhode Island is destined to end up like Detroit, Buffalo and Rochester: has-been economic areas with a few wealth people who are immune to the local economy; lot's of people on the dole; and few middle-class families left.
Posted by: Tom W at March 25, 2008 10:50 AM