Connecticut ranks among the worst states for its ability to drive economic growth and create jobs, and fares only slightly better in its outlook for improving, the latest competitiveness index show.
Connecticut ranked 43rd in past competitiveness but improved to 35th in its competitive outlook, according the fourth edition of the award-winning Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.
This new study explains how states can most effectively drive economic growth, create jobs, and improve the standard of living for their citizens. ALEC is the American Legislative Exchange Council.
Based on their 10-year performance from 1999 to 2009, the top 10 states are, in order, Utah, South Dakota, Virginia, Wyoming, Idaho, Colorado, North Dakota, Tennessee, Missouri and Florida.
The bottom 10 are, in order, New York, Vermont, Maine, California, Hawaii, New Jersey, Illinois, Oregon, Rhode Island and Pennsylvania.
Massachusetts ranked 25th and New Hampshire 28th.
Indeed, the latest index calls the Northeast the “new Rust Belt” and devotes an entire chapter assessing what went with the region and offering some prescriptions for a turnaround. Rust Belt was the sobriquet given to Midwest states that saw the mass exodus of their steelmaking and other big-scale manufacturing during the early ’80s.
The award-winning Rich States, Poor States is widely used by state legislators of all parties and affiliations.Â
The economic pressures were unavoidable that resulted in huge budget gaps and threats to lay off state workers in Connecticut and other states, the authors say.
“After years of excessive state spending, we are now witnessing a nationwide effort to rein in government spending and introduce fiscally responsible practices,” says co-author Jonathan Williams, who directs ALEC’s Tax and Fiscal Policy Task Force. “Many of the states that have chosen to live within their means have been able to develop attractive climates for new investment. States cannot spend, borrow, or tax their way into prosperity.”
