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A Well-Planned “Shock” To The System Is, Indeed, Warranted

According to the Rhode Island Family Prosperity Index, “startups aren’t the only thing when it comes to job growth. They’re the only thing.” The only way to incentivize enough start-up activity to make a difference in our state is to create a business climate that is attractive enough to make thousands of entrepreneurs want to invest here. Crony deals for a few dozen companies will not get it done.

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Voters Must Be the Adults in the Process or Idiocy Will Reign

In keeping with my post, yesterday, about the government’s impositions on people who dare to work with others’ hair without a license, Jeff Jacoby highlights, in his Boston Globe column, an exchange between Socialist Senator Bernie Sanders and hair salon owner LaRonda Hunter during the senator’s debate last week with his Republican peer Senator Ted Cruz.

Ms. Hunter wanted to know how she’s supposed to grow her business when the government imposes thresholds for benefits, like health care, that don’t work within her profit margin.  Jacoby:

The exchange could not have been more enlightening. For entrepreneurs like Hunter, a mandate to supply health insurance triggers inescapable, and unignorable, consequences. For Sanders and other defenders of Obamacare, those consequences are irrelevant. They believe in the employer mandate — a belief impervious to facts on the ground.

Lawmakers so often enact far-reaching rules with worthy intentions, but little awareness of how much harm government burdens can cause.

Jacoby goes on to note this classic anecdote about liberal Democrat Senator George McGovern:

After a long career in Congress, former senator George McGovern tried his hand at running a business — a small hotel in Connecticut. “In retrospect,” McGovern wrote after the inn went bankrupt, “I wish I had known more about the hazards and difficulties of such a business. . . . I also wish that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day.”

Think of all the idiotic (yes, idiotic) legislation being submitted by the likes of the General Assembly’s quintessentially inexperienced Ivy League legislator Aaron Regunberg.  Voters must become the adults in the process, because too many of the politicians and their special-interest-or-ideologue supporters are not capable of playing the role.

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The Poster Hairdresser for How Government Interferes with Civil Society

Rhode Islanders may have noticed that Providence Democrat Representative Anastasia Williams has submitted legislation to allow people to braid hair for pay without requiring a license.  This is actually a subject that the RI Center for Freedom & Prosperity has raised in the past (although I can’t find a link, just now) and is consistent with both our long-running insistence that the state government is strangling our economy with regulations and our more-recent emphasis on shifting policy in favor of helping Rhode Island families and facilitating non-government civil society.

Via Instapundit, however, comes an entry by Eric Boehm of Reason, who may very well have spotted the poster child for the government’s overreach in directing our lives and preventing us from serving one another as human beings:

The Arizona State Board of Cosmetology is investigating Juan Carlos Montesdeoca after receiving complaints that he was cutting hair without a license, Tucson News Now reported Monday. According to the complaint, which Montesdeoca shared with the TV station, the board received an anonymous complaint alleging that Montesdeoca was “requesting local businesses and local stylists to help out with free haircuts (unlicensed individuals) to the homeless.”

This morning, the Tiverton Budget Committee (of which I’m a member) toured the town’s Senior Center, and the new director related some of the anecdotes that she’s heard about the 100-year-old building.  Back when it was a school, apparently doctors would open weekend clinics for various procedures, including the removal of tonsils.

Now, given advancements in knowledge, we can surely agree on a role for government in requiring sanitary conditions and licensed professionals to perform such surgeries.  At the same time, we should be able to agree that rules against hair braiding and charity trims don’t really protect anybody but established practitioners who are able to charge more money the less competition they have.

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Mike Stenhouse on GoLocal LIVE – Gov’s Manufacturing Council

Thanks to Kate Nagle and GoLocalProv for inviting the Rhode Island Center for Freedom and Prosperity’s Mike Stenhouse on their new GoLocal LIVE program yesterday. They discussed, in part, Governor Raimondo’s recently announced manufacturing advisory council, which is comprised of lots of people but not a whole lot of economic diversity.

Meanwhile, congratulations and best wishes to Kate Nagle, Molly O’Brien and GoLocalProv on the launch of their cutting edge new program!

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Some Day, My Prince … Er, Cheap, Green Energy Will Come

You may have been keeping half an eye on the proposed power plant that a firm called Invenergy would like to build in Burrillville. Friday, the Providence Journal reported that

Invenergy has failed to sell the second half of the power output of its proposed fossil fuel-burning power plant in Burrillville to the regional electric grid.

Opponents of the proposed plant understandably view this development as good news. However, it is not a fatal blow for the proposed power plant, as the article notes.

Further along, the article also notes that New England has had 4,200 megawatts of generating capacity taken off line (my observation: this happened in large part due to out-of-control EPA regulations by the Obama administration), and another 6,000 megawatts are at risk of going off line. Accordingly, many of us are concerned about the cost and continued adequate supply of electricity.

Environmentalists believe they have the answer.

But opponents of the plant say that renewable sources can fill in any need for new power in New England.

Yikes. Sorry, no, that is simply not the case.

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Support for Lots of Immigration, Not Necessarily Altruistic

Funny how moral principle in politics seems so often to align with self interest.  Here’s Byron York in the Washington Examiner:

Why is Washington State mounting such a vigorous challenge to President Trump’s executive order temporarily suspending non-American entry from seven terrorism-plagued countries? Of course there are several lawsuits against the president, and there are lots of motives among the various litigants. But Washington State’s is the suit that stopped the order, at least temporarily. And a look at the state’s case suggests that, behind high-minded rhetoric about religious liberty and constitutional protections, there is a lot of money at stake.

Judging by the briefs filed by Washington State, as well as statements made by its representatives, some of the state’s top priorities in challenging Trump are: 1) To ensure an uninterrupted supply of relatively low-wage H-1B foreign workers for Microsoft and other state businesses; 2) To ensure a continuing flow of high-tuition-paying foreign student visa holders; and 3) To preserve the flow of tax revenues that results from those and other sources.

And don’t forget Medicaid, SNAP, public education, and other federally subsidized welfare programs available to legal and (probably) illegal immigrants on the government plantation.

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Progressive Regunberg’s Trusted Source Highlights Gender Pay Gap Myth

Given that Democrat Representative Aaron Regunberg of Providence finds Glassdoor research so credible that he cites it as representative of the field of corporate information in legislation, perhaps this additional finding from the company will persuade him to agree that the talk of unequitable pay for women is a myth:

As above, with no controls men earn $21,410 more than women on average. However, adding controls for age and performance reviews that gap shrinks to $15,776. Finally, adding all controls the “adjusted” pay gap shrinks to -$425, which is a slight female pay advantage (but not statistically significant). Thus, once we make an apples-to-apples comparison of workers, there’s no material difference in pay by gender at Glassdoor.

Unfortunately, I suspect the “pay gap” is on the list of deceptions that are just way too valuable to the Left to allow correction.

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Upward Mobility And Prosperity For Ocean State Families

New national research shows that Rhode Island ranked just 48th on the 2016 Family Prosperity Index (FPI). In December 2016, our Center in conjunction with our national partner, the American Conservative Union, issued a 52-page RI Family Prosperity report that highlighted contributing factors to our state’s poor rankings across 57 indexes. Among other discussions, the report suggests that Rhode Island has room to modernize and improve its criminal justice system. Reforms put forth as part of the state’s JRI, and by other organizations can help provide more opportunity for upward mobility and prosperity for Ocean State families.

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Resisting the Push to Make College Degrees More Useless Paper from the Government

Given debate in Rhode Island about taking more money from already-overburdened taxpayers in order to allow politicians to buy votes by giving away college tuition, the headline of Jeffrey Selingo’s article in The Washington Post catches the eye: “Is a college degree the new high school diploma? Here’s why your degree’s worth is stagnant.“:

… a new study of the degree premium, published by the National Bureau of Economic Research, finds that its growth has flattened in recent years. While the premium grew rapidly in the 1980s — mostly because of the decline of manufacturing jobs that required just a high school diploma — its growth slowed in the 1990s, followed by a small uptick in the first decade of the new millennium.

Since 2010, however, the premium has largely remained unchanged, said the report’s author, Robert G. Valletta of the Federal Reserve Bank of San Francisco. The “patterns indicate that the factors propelling earlier increases in the returns to higher education have dissipated,” Valletta wrote.

As I’ve been saying.  People should question the promises of Democrat Governor Gina Raimondo’s free-college grab and ponder whether it’s really just the government trying to give itself two or four more years of taxpayer subsidization to accomplish the task of educating students whom it has failed for the first thirteen (or more) years of their education.

The “value of a degree” will fluctuate depending not only on the job market, but also on the purposes to which it is put.  If employers are just using degrees as they might once have used self-administered literacy tests, then the education itself is next to useless.

We should question, too, whether it’s proper to assign value to the piece of paper rather than the holder.  Selingo’s article includes a chart that does indeed show that people with higher-level degrees tend to cluster at higher income levels, but one can’t leave the reasons people seek degrees out of the equation.  A better phrasing might be that people who achieve high pay tend to seek higher degrees.  Those who get the degrees because they’re free or cheap won’t have the same results.

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A Great Step Toward Regulatory Relief

Until they get tangled up in them, most people probably pay little attention to the metastasizing regulations that governments impose on us.  Spread across society, regulations tend to avoid focusing so much pain as to spark broad, targeted resistance, whereas special interests, including established businesses with incentive to create barriers to entry for competition, have great incentive to keep the ratchet turning.  Moreover, most people don’t see the direct link between regulation and mounting costs in the prices of goods and services and opportunities they personally never realize.  That’s why common sense rules of thumbs like this, described by the Wall Street Journal editorial board, are important:

President Trump signed an executive order Monday that will require federal agencies to eliminate two existing regulations for every new one created, fulfilling another signature campaign trail promise.

The president signed the order from the Oval Office minutes after emerging from a roundtable with small business owners, who surrounded the Resolute desk as Trump praised the rule.

The executive order would also forbid estimated costs of regulations from going up.

We need this sort of policy on steroids in Rhode Island.  Maybe a dozen regulations killed for every one introduced.

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Can Lawmakers Become Rhode Island’s Heroes?

Everyone concerned about the well-being of our state’s families should be alarmed by our unacceptable 48th-place ranking on the Family Prosperity Index (FPI). The FPI demonstrates quantitatively the undeniable link between economic and social policy in determining family prosperity. Whether it is criminal justice reform, taxation, or education, if we are to improve our state’s dismal 48th place ranking in overall family prosperity, we must make helping families the focus of our public policy and private advocacy. Lawmakers can become heroes if they can construct policies that actually address the real needs of real families.

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Unions Gain Strength in Failing State

The headline from Eric Morath’s Wall Street Journal article holds true for the country: “Share of U.S. Workers in Unions Falls to Lowest Level on Record.”

The share of American workers in unions fell to the lowest level on record in 2016, showing a return to the downward trend for organized labor after membership figures had stabilized in recent years. …

Only 10.7% of workers were union members last year, down from 11.1% in 2015, and from more than 20% in the early 1980s.

Unfortunately, the same does not hold in Rhode Island.  In our state, the percentage of “wage and salary workers” (those who work for somebody else) who are union members went up from 14.2% in 2015 to 15.5% in 2016.  Helping that percentage go up, to some degree, was the fact that the total number of workers actually dropped in Rhode Island over the year, from 483,000 to 481,000.  However, the absolute number of union members also went up.

A government stranglehold, both bolstering its employees and imposing restrictions on the private sector (often in favor of labor unions) is putting the state into a sort of death spiral as workers whose employment is either directly or indirectly subsidized by government hold on and those doing the subsidizing are finding themselves out of work… or out of the state.

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A More Holistic Path To Help Real Rhode Islanders

It is time to challenge the status quo insider mindset and to search for a more holistic path to help real Rhode Islanders improve their quality of life. This week, the Center held a forum at Bryant University that provided an ideal opportunity for community, religious, and political leaders to convene to begin the process. We brought together leaders on both the left and right to discuss the challenging questions, and the strongest voices stood in stark contrast to the corporate tax-credit policies that have been the center-piece of the Raimondo administration’s economic development agenda.

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Stop Putting Half Our Eggs in the Federal Basket

Hey, here’s a thought: Maybe the State of Rhode Island should stop acting like a subsidiary of the federal government and start acting like a sovereign state that thrives when its people thrive.  If this isn’t a wake-up call, I don’t know what could be:

While other states – including Mississippi, Louisiana, Tennessee, Montana and Kentucky – are more federal aid-heavy than Rhode Island, a newly-released analysis by the nonpartisan Tax Foundation, of 2014 census data, found Rhode Island 16th highest in the nation in terms of how much of its budget is financed by federal dollars. In that year, 34.7 percent.

Anyone worried? The answer: You betcha. But some more openly worried than others.

In large part, this is the government plantation, but it’s also indicative of the government’s crowding out the private sector as an economic competitor, too.

Any wise investor upon having a scare with a particular stock would figure out the importance of diversifying.  It’s time for Rhode Islanders to stop relying more on government as an economic driver and start relying on each other.

And don’t let fear of President Trump specifically be the end of your consideration of the matter.  Think about how vulnerable to real tyranny it makes us that our supposed leaders apparently have to make decisions about governance in order to keep the money flowing.  Everything else, from culture to global warfare, could easily take a back seat to that bottom line.

As individuals, families, and a state, being dependent makes us weak and vulnerable.

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Money-Grubbing Company’s CEO Praises Politician Who Paid Him

It’s tempting to wonder whether Democrat Governor Gina Raimondo made a governor-praising op-ed by CEO Bob Baird a condition of the state government’s tax-dollar handout to pen-company A.T. Cross:

Enter Gov. Gina Raimondo. In 2014, soon after she was elected, Governor Raimondo called to tell us she loved our history in Rhode Island and looked forward to using a Cross pen to put her signature on official documents. Later, when the governor and her team learned we were talking to other states about pulling up our roots and beginning anew somewhere else, they made it clear they value Rhode Island companies that have been here all along. The governor, Commerce Secretary Stefan Pryor and their team made a compelling case that our business is best served by staying in Rhode Island and that our employees will find everything they are looking for here at home.

Most likely, though, the CEO’s public promotion of the governor was more of a wink and nod affair than a contractual stipulation, or maybe it’s simple etiquette in the you-scratch-my-back-I’ll-scratch-yours crowd.

I will say that I’ll never deliberately buy an A.T. Cross pen, now, although if the company decides to send a thank you gift to every Rhode Islander for our involuntary contribution to the company’s bottom line, I’ll take one.

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Raimondo Insults Your Intelligence with College Plan

This morning, I noted that legislators are the only people in Rhode Island who can promise workers a 10% increase in pay without worrying about where the money will come from.  It just magically appears in their imaginations.  At noon, I suggested that Rhode Islanders should be embarrassed that their state is so dependent on federal government welfare.

The state government’s latest revenue and caseload conference estimated that the government’s revenue will fall $52 million from fiscal 2016 to fiscal 2018.  And during the budget process, last year, the state expected that deficits would climb $40-60 million per year, hitting $333 million by 2021.

So how in the world does Democrat Governor Gina Raimondo state the following — and get away with it in G. Wayne Miller’s Providence Journal article — while promising the new $30 million expense of giving all Rhode Islanders two free years of college at a state institution?

We have the money. This is affordable. It’s a smart solution.

It’s a vote-buying giveaway pure and simple that counts on Rhode Islanders’ not noticing that they’re paying the bill.  It’s an insult to our intelligence.

Moreover, we should expect that the estimated cost is laughably low.  Given free tuition, more families will use the colleges and university, and the institutions will surely increase their tuition rates once the cost to the decision makers (students and their families) is zilch (or half-price, for four-year degrees).  And this doesn’t even get into the governor’s assumptions that people who have no financial skin in the game for their degrees will actually take their studies seriously and apply themselves and that those who do will stay in the state rather than taking their subsidized degrees to states that actually have healthy economies.

One can only hope that Rhode Islanders aren’t so far gone, at this point, that they fall for the governor’s snake oil sale.

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The Conversation Starts Tuesday: Opportunity To Become Self-Sufficient

Everyone concerned about the well-being of our state’s families should be alarmed by our unacceptable 48th-place ranking. It is time to challenge the status quo insider mindset and to search for a more holistic path to help real Rhode Islanders improve their quality of life. This week, the Center will co-host a forum at Bryant University, that will provide an ideal opportunity for community, religious, and political leaders to convene and begin the process.

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RI Should Be Embarrassed of Federal Dependency

Morgan Scarboro of the Tax Foundation has taken a look at the states’ reliance on the federal government when it comes to taking money from other Americans and padding their own budgets:

In fiscal year 2014, over 60 percent of federal spending in the states went to benefits payments to individuals, including Social Security and Medicare. Aid is also given to states for education, transportation, housing, agriculture and more. Medicare is the largest grant program and continues to grow. Federal aid to states as a whole also grew 25 percent (adjusted for inflation) from 2005 to 2014.

Rhode Island is in the top group of states, with 34.7% of our state revenue transfered to us from the federal budget, more than any state this side of West Virginia other than Maine, which is poorer. This is the government plantation, and it ought to be an embarrassment to Rhode Islanders.

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Again: Minimum Wage Increases Are Political Thievery

When I read the Providence Journal headline, “Rhode Island lawmakers propose $10.50 minimum wage,” I can’t help but wonder: Propose to whom?

A group of Rhode Island state lawmakers has proposed raising the state’s hourly minimum wage by 90 cents this summer.

The bill introduced Wednesday proposes increasing the minimum wage to $10.50 on July 1. The current $9.60 minimum took effect a year ago.

The answer, obviously, is that some legislators are proposing it to other legislators, who are no more the business owners who will be forced to foot the bill than are those doing the proposing.  This is an insular, disconnected group debating whether to claim a political reward for spending somebody else’s money.

Rhode Island legislators are the only group in the state empowered to promise people a nearly 10% increase in pay without having to come up with the money, or even to worry whether people lose their jobs over it.  They’re thieves, plain and simple.

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