Politics & Government

Forbes: Connecticut's Economy Among Worst in Nation

The magazine questions how one of the richest states in the union got into so much of a financial mess. Answer: Politicians.

By Eileen McNamara: 

Forbes Magazine says Connecticut has one of the worst performing economies in the country and it places the blame for our decline squarely on politicians. 

In an article published this week Forbes says that Connecticut, among other things: 

  • Ranks 50th — the worst — in annual economic growth. 
  • Has seen small businesses decline here 2.2 percent between 1996 and 2006, while the average experience of all 50 states was a 10 percent increase. 
  • Is spending money out of control, as evidenced by Gov. Dannel P. Malloy's $1.8 billion tax hike.
  • Has run up the fourth largest pile of debts per capita — $27,540, including unfunded liabilities for government employee pension funds.  
  • Has one of the worst business climates in the country, including a  "temporary" 20 percent surtax on top of its flat 7.5 percent corporate income tax. The temporary tax has been in place since 2009.
  • Forbes blames our economic woes on our elected leaders. 


"What Connecticut politicians failed to do was focus on making their jurisdictions as attractive as possible to investors and entrepreneurs, so there would be a continuing influx of new jobs.  Among other things, this means reducing the cost of doing business for everyone, large and small – prospective newcomers as well as investors and entrepreneurs already in the state," the magazine says.

"Instead of doing that, Connecticut politicians have gone on spending sprees in an effort to enhance their re-election prospects.  The spending sprees necessitated higher taxes that increased the cost of doing business and helped drive away potential investors and entrepreneurs."


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