Quote:
Originally Posted by RIJIMMY
ohio successful - auto bailout!
texas successful - energy credits!
Wisconsin successful - borrowed $!
Colorado,Virginia, - defense spending! cheap labor!
Okay,
So lets take a different approach, can you enlight me on why CT, RI, MA, MI and for giggles lets throw in CA are all s#^&#^&#^&#^&#^&g wind, broke, losing population and general in a heap of shat?
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For one thing, New England has higher real estate and energy costs which impact both cost of living and cost of business. My understanding is that the small size of local municipalities also drive up state debt as the states effectively have to underwrite capital investment so communities can get more favorable terms. State pensions do factor in as they do in most states.
RI might not have a great business climate but I don't think MA is that bad...and Boston is seeing a but of a high-tech revival fueled in part by a highly educated local work force. CT is experiencing growth due to aerospace business improving globally.
High energy costs are a big factor here as well. Why does TPI make wind blades in Iowa instead of Warren, RI? It's not because of taxes or regulation, it's because of transportation costs.
The point is, that there are a lot of variables to factor in if you're going to try and understand why some states are doing better than others at any given point in time. Yes, low taxes and regulation might be an enticement...but perhaps overshadowed by cheap housing, cheap land and cheap energy all of which have driven growth in TX.
So would Rhode Island be successful if it acted more like Texas? Unfortunately it's just not possible.
-spence