This is a letter I sent to the Journal Inquirer
To The Editor,
Enough! The JI has spent column after column
attempting to defend Connecticut’s “business climate” – largely through the use
of North Carolina as it’s straw man.
Some simple data would suffice.
I searched the Internet via Google
using the search term “business climate by state.” The first result was to Forbes ranking all 50
states in a list entitled “The Best States for Business and Careers.” The list ranks the states by the following
categories: Business Costs Index, Labor
Supply Rank, Regulatory Environment Rank, Economic Climate Rank, Growth
Prospects Rank, and Quality of Life Rank.
Connecticut scored an overall 33
out of 50. North Carolina scored 4 out
of 50. So it turns out that North
Carolina does indeed have a much more friendly business climate. More important are the individual
scores. The two most significantly in
need of improvement in Connecticut are the Business Costs Index and the
Regulatory Environment Rank, which Connecticut scored 47 and 39
respectively. The former indexes things
like the cost of labor, energy, and yes, taxes.
The latter ranks things such as labor regulations, healthcare mandates,
right to work laws, bond ratings, and the transportation infrastructure. These are the two areas where Connecticut’s
government are getting things wrong, at least as compared to other states. North Carolina’s rankings are number 2 and 3,
respectively.
It should also be noted that
Connecticut did score highly on one rating – Quality of Life and was 2nd
in the nation for this metric. And as
the JI points out, this ranking far exceeds North Carolina’s ranking of 32 in
the nation. This would seem to confirm the
JI’s supposition that even if Connecticut has a much worse business environment
than North Carolina, at least we are not dispensing with our quality of life as
it would seem North Carolina has.
However, perhaps a lesson could be learned from the state that ranked
the highest in “business climate” of all 50 states?
That state would be Virginia. It scored 22 on the Business Costs Index,
much better than Connecticut, albeit still far from the top. But Virginia blew Connecticut’s doors off
with regard to the regulatory environment.
Virginia scored first in the nation in that category. Might Connecticut be able to take a lesson
from Virginia in that regard?
But all that business success must
come at a cost, you ask? Indeed. Virginia’s Quality of Life index was below
Connecticut’s, scoring only 4th in the nation compared to
Connecticut’s 2nd place finish.
I would ask the JI this question:
Would you be willing to see Connecticut’s Quality of Life index to drop
two places to be the best state in the Union for “business climate”?