Facts are stubborn, Mark Twain once wrote, but statistics are more pliable.
Hartford’s favorite wit knew a few things about the way the world works. But even he would be concerned about the factual picture being painted by the region’s economic statistics.
The federal government estimates Connecticut’s unemployment rate at 8.9 percent for December. Add in the underemployed and that soars past 14 percent.
A snapshot of office vacancy in Hartford County that appears on Page 11 of this issue shows one impact of the vanishing jobs. Overall, 18.3 percent of the county’s 25.6 million square feet of office space was vacant at year’s end. And it’s getting worse, with 332,678 square feet of space going dark in the fourth quarter.
Here in Hartford, the legislature is wrestling with ways to stimulate the economy without sinking the state budget in red ink. As Greg Bondonaro reports, it’s a trick better suited to magicians than legislators. Down in Washington, Congress is trying to mix a similar alchemist’s brew.
It’s an important task because today we — as a nation, as a state and as a community — are at a crossroads.
The fact is this recession is stubborn and we’re a long way from recovery. Public policy decisions can help… or hurt.
Done well, a creative set of tax credits and job creation measures could pave the way for a renaissance. That catchy ad campaign proclaiming Hartford as New England’s rising star could prove spot on. With a pool of skilled labor and ample available space, Hartford County could well be an entrepreneur’s dream come true.
But done badly, a hodgepodge of shifting tax credits and regulations could make the whole ‘rust belt’ malaise even worse. Business hates uncertainty and a muddled approach to economic stimulation might well be worse than nothing at all.
The crucial element here is that nothing short of our collective future is at stake. And that’s a commodity far too valuable to entrust to politicians whose focus has already strayed to the November elections.
As a business community, it’s our duty to stand up and be heard. Tell your legislator what relief would really matter to your business. Dumping the $250 business entity tax seems a nice gesture but does that pittance really matter? Would a break on regulations be more help or just faster action? As Joanna Smiley reports in this week’s “Local Insight” column, regulatory delays almost sunk an innovative Newington business before it got started. It’s not an isolated complaint.
Connecticut has a well-earned reputation for being a tough place to do business. Sure, taxes and fees are part of that. But not every thorn in this thicket has a dollar cost attached. For many businesses, the state could do more to help stimulate growth by cutting into the forest of regulation and paperwork that every business owner knows all too well.
Acknowledging that the state’s budget shortfall limits the tax relief options, perhaps now is the time to focus our time and effort on streamlining the regulatory side of the equation. Cutting red tape requires more will than cash.
Connecticut businesses need help. That’s a fact Twain could embrace.
The question now is whether state legislators can put aside politics long enough to be of any real help.
