Moody’s Forecast: Rhode Island Will Have the Slowest Five-Year Growth of the Six New England States

The Boston Globe reports on one more dire indicator of the State of Rhode Island’s economic future, produced by analysts at Moody’s Economy.com, and presented at the New England Economic Partnership’s recent semi-annual get-together (h/t Ian Donnis)…

Projected Average Annual Change in Gross State Product, 2006-20011
  • New Hampshire 3.0%
  • Connecticut 2.3%
  • Vermont 2.3%
  • Massachusetts 2.1%
  • Maine 1.9%
  • Rhode Island 1.6%
Apparently, those uncontrollable national-level macroeconomic forces that people are eager to blame for this state’s economic woes really have it out for Rhode Island.

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Ragin' Rhode Islander
Ragin' Rhode Islander
13 years ago

From the Boston Globe story:
–“Of the six New England states, all burdened by high energy costs, only New Hampshire, with an estimated annual growth rate of 3 percent, was projected to grow faster than the national average over the next five years. Connecticut and Vermont were projected to grow 2.3 percent annually, Maine 1.9 percent, and Rhode Island 1.6 percent.”
MEMO TO THE MORONS AT THE DEMOCRAT GENERAL ASSEMBLY – income and sales tax free New Hampshire is the only New England state to beat national growth rates.
–“Massachusetts continues to see young college graduates migrating to other states. But it retains several competitive advantages, including higher education levels and research-and-development investments, than elsewhere in the country, said Clayton-Matthews.”
MEMO TO THE MORONS AT THE DEMOCRAT GENERAL ASSEMBLY – thanks to your decades of union pandering, welfare pandering, corruption, economic ignorance and jihad against “the rich” Rhode Island DOESN’T have those competitive advantages to cushion the blow.
MEMO TO “WORKING FAMILIES” – As you watch the rest of your children move away in search of a job, and you try to figure out how to pay your spiraling property tax bill after you lose your job, may you find some solace in your reflexive support of the “party of working families” and “like my local rep” voting … SUCKERS! Well, perhaps you can live vicariously through your state employee / teacher neighbors, once they start mailing you postcards from Florida as they enjoy their pensioned idyll that you paid for.

rhody
rhody
13 years ago

Working families in Rhode Island have, indeed, gotten screwed.
If they can’t have the tax cut, the rich shouldn’t have it, either. I don’t understand how one can reconcile support for working families with championing tax cuts for the rich.

Monique
13 years ago

“jihad against “the rich””
… and against corporations. (You know, the entities that offer pay in exchange for work.)
I’d like to believe in a national-level macroeconomic boogieman as much as the next person. It is more likely, however, that our sluggish economic growth has something to do with this:
“A nonprofit tax-research group in Washington released a study today that ranks Rhode Island dead last in the country for the state’s business tax climate.
Rhode Island is one of three New England states — the others being Vermont and Maine — that ranked as having among the “ten worst business tax climates,” according to The Tax Foundation.”
http://www.projo.com/business/content/BZ_BUSINESS_CLIMATE_10-10-07_BK7E56P.26fa619.html

chuckR
chuckR
13 years ago

So, if our budget were balanced and if there were no looming structural deficit, that 1.6% would be a prudent cap on state expenditure growth. Except we have 5.7% state expenditure growth projected with a current structural deficit and a projected overall deficit of 13-14%. I’d laugh, but it hurts too much.

Tom W
Tom W
13 years ago

>>So, if our budget were balanced and if there were no looming structural deficit, that 1.6% would be a prudent cap on state expenditure growth. Except we have 5.7% state expenditure growth projected with a current structural deficit and a projected overall deficit of 13-14%. I’d laugh, but it hurts too much.
It would be interesting to know if the 1.6% is in excess of the inflation rate, or doesn’t take inflation into account.
If this is not adjusted for inflation, it means that in real terms RI’s economy is shrinking!

Mike
Mike
13 years ago

Tom, you can bet that figure represents a shrinkage in real dollars.
What else would one expect from “progressive” economics?
The economies of the Soviet style demand economies all shrank. This is what happens under socialism. Look what a gorgeous, low-rent state California was 30 years ago and what a third world sewer it has become with America’s highest income tax.
As taxes procede capital flees.
Try explaining that to those overeducated geniuses on the East Side or Edgewood! LOL.

Anthony
Anthony
13 years ago

California’s problems led to Arizona’s growth. Where will Rhode Islanders go?

Bob A.
Bob A.
13 years ago

I can’t understand why people even bother to “fight the system” in this state anymore.
IT IS A WELFARE STATE THAT WILL NEVER CHANGE FOR THE BETTER.
Things get easier once one accepts that.
Homeownership? Out of the question (I’m under 45 and don’t “come from money.”)
A compatible mate? Out of the question. Many college educated people in my age bracket with similar traits have left here; I am one of the few remaining suckers.
Retirement here? Forget about it. Even MA won’t tax my pension, but RI will. I could retire in MA and be better off, which in itself is pretty sad.
So I rent, invest ~ 35% of my gross income and pray for an early retirement so that I can leave this god-forsaken welfare state before I die.

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