Posted at http://www.moderate-ri.org/news/worstinthenation.htm:
Forbes magazine just released its most recent national ranking of the Best States for Business. The rankings of all 50 states can be viewed here:
http://www.forbes.com/2009/09/23/best-states-for-business-beltway-best-states_table.html
Unsurprisingly to many, Rhode Island came out dead last in this ranking.
While many of us are aware that Rhode Island’s tax climate and posture acts against the growth of our economy, the Forbes article brings to light other areas of dysfunction that act against our economic interests.
Rhode Island ranked 35th in terms of ‘Labor Rank’, which is described as ‘measures educational attainment, net migration and projected population growth’.
Our schools continue to underperform in terms of providing a skilled workforce for our state, and our schools attain this under-performance while costing a lot relative to the educational costs incurred by other states. An under-educated workforce acts against new employers coming to Rhode Island bringing jobs that require 21st century skills.
Rhode Island is losing population, which should be unsurprising to us all. First of all, as jobs disappear due to our uncompetitive posture, people need to move to other states where the job pool is growing. Second, as Rhode Island becomes more uncompetitive tax-wise with other states, individuals will move to where their cost of living is lower. These are natural events governed by basic laws of human nature and economics.
Rhode Island ranked dead last in ‘Regulatory Environment’, which is described as ‘Measures regulatory and tort climate, incentives, transportation and bond rating’.
In the time since I began pushing the idea of the MPRI out to the public, I have had many individuals (electricians, plumbers, business owners, physicians, etc.) complain to me about the incredible regulatory burdens placed on them to do business in Rhode Island. In every case, a comparison was made with neighboring states where the regulatory burden either did not exist at all, or was significantly simpler and/or cheaper than Rhode Island’s burden.
These burdens have run the gamut from outrageous licensing fees to byzantine rules for tradesmen working in industries with a large unionized work force.
If you have a regulatory burden story to share, please email me at [email protected].
These above two issues are critical issues that impact the very economic fabric of our state.
Our dismal rating comes with some good news: we are ranked 18th in terms of ‘Growth Prospects’ and we are ranked 21st in terms of quality of life (even with all of our problems!!).
Rhode Island can prosper and convert our current economic downward spiral into strong growth, an increasing tax base and a more educated work force.
All we need to do is fix our current political dysfunction.
Had enough?
Fifty states and fifty Chambers of Commerce vying for the title ??????
Wasn’t Nevada the worst for business?