Rhode Island Ranks Dead Last in U.S. for Business
Thursday, July 12, 2012
Rhode Island is “pretty much under water” when it comes to business competitiveness, ranking dead last in the country, according to a report released this week by CNBC.
It was the second straight year the Ocean State finished 50th in the report, which ranks states based on ten categories, including cost of doing business, workforce, quality of life, infrastructure & transportation, economy, education, technology & innovation, business friendliness, access to capital and cost of living.
At 11 percent, Rhode Island still has the second highest unemployment rate in the country. The CNBC report also suggests the state’s struggling municipalities are partially to blame for its low ranking.
But while the negative attention is a blow to the state’s reputation, the ranking comes as no surprise to the state’s leading economic experts.
“Today Rhode Island’s economic development and opportunity programs are unclear, unsure and lack a strategic direction,” Gary Sasse wrote in a piece for GoLocalProv this week. “A former executive director of the Economic Development Corporation recently noted that since 1969 the state has been involved in five studies focusing on education, infrastructure and the business climate. Yet today when compared to other states, Rhode Island is less competitive.”
Sasse, who served as executive director for the Rhode Island Public Expenditure Council for three decades, believes political leaders are partially to blame for the state’s woes.
“Rhode Island is in a relative state of decline because of the way resources are allocated and the poor performance of its political institutions,” he wrote. “The primary remedy is strong and accountable leadership. Such public leadership is an essential ingredient to help organize people to work together for the common good. Meeting Rhode Island’s challenges will require leaders who possess the skills, tools and courage to act as effective leaders.”
There were a few bright spots in the CNBC report. Rhode Island ranked 10th in the country for access to capital and 23rd for both education and quality of life. Still, the state pales in comparison to most the country, let alone the rest of England.
Connecticut was the only other New England state to finish in the bottom ten of the rankings. New Hampshire was at best at No. 19 and Massachusetts ranked No. 28 overall. Texas, Utah, Virginia, North Carolina and North Dakota comprised the top five while Hawaii, West Virginia, Alaska and Mississippi joined Rhode Island in the bottom five.
The concern is that thing could still get worse for the Ocean State. In May, a report released by Bryant University’s Center for Global and Regional Economic Studies and the Rhode Island Public Expenditure Council warned that the state could be on the verge of a double-dip recession.
The report found that slow rates in economic growth have had the state’s economy stuck in neutral for over a year.
Dr. Ed Mazze, Distinguished University Professor of Business Administration at the University of Rhode Island, warned that such a hit would be devastating to Rhode Island.
“A double-dip recession for Rhode Island will result in a further drag on the state's economy,” he said in May. “You can expect unemployment in the range of 12 to 13 percent, more underemployment and people giving up looking for a job.”
Dan McGowan can be reached at dmcgowan@golocalprov.com.
Comments:
Jeffrey deckman
8:51am on Thursday, July 12, 2012
Thank the democrats and the unions. And they say they are for the "working folks". Well boys and girls if there are no businesses there are no jobs. And if there are no jobs there are no working people.
Clueless fools. All of them.
And dangerous too....
Harold Stassen
10:09am on Thursday, July 12, 2012
Unfortunately, this is information we already knew about; for years. The state's governmental and economic policies are the antithesis of other state's that are attracting and maintaining businesses thereby protecting and adding jobs. But what was the main agenda in this year's general assembly, legalizing marijuana and gay marriage. Sadly, it seems the predominant thought among many readers/posters is to keep voting for Democrats. The same dunderheads who have pandered to unions and social activists for years, the result of which is the basis for this article. If anyone truly doesn't get it at this point, they never will.
Michael Napolitano
10:26am on Thursday, July 12, 2012
Attention all citizens of Rhode Island. This is the report card for the Democrat Party that has ruled the General Assembly for over 70 years. It is time to take them off the field and send in a new team! RI is last in business, 2nd in unemployment, a D- for transparency, and even a high ranking on the Misery Index!
The Democrats in the General Assembly did nothing to help our state get out of this economic nightmare. In fact, the budget has tax increases in it!
It is time to restore balance to our General Assembly and support Republican candidates this fall. Have you had enough yet?
Todd B
11:56am on Thursday, July 12, 2012
This is Bush's fault!
Oh wait, Texas was ranked #1 (again) and RI was last (again).....never mind...
Lea Knepley
2:12pm on Thursday, July 12, 2012
As a local business owner, I can certainly attest to the fact that Rhode Island is very unfriendly to small business. However, if I was a major league pitcher wanting a Economic Development Corporation loan for a few million dollars, I could get one.
Doesn't anyone else see that by funding the existing small businesses here in Rhode Island, instead of giving out-of-state corporations loans and tax breaks, we would be a prosperous state!!!
Stop complaining and vote with your wallets, buy from and support local, independent businesses.
Stop buying the crap made from overseas- BUY LOCAL!!!
Captain Blacksocks
3:26pm on Thursday, July 12, 2012
RI is a national joke. Can you imagine any big employer studying these rankings (as they surely do) and then choosing to move their business into RI? It's just not going to happen until RI ranks at least in the middle of the pack. It's going to be years before you see any major employer move into RI from some other state. The RIEDC should be disbanded for a few years to save many millions of dollars in useless salaries. What is the RIEDC supposed to promote nationally when the state's rankings are lower than low? Please vote for ALL NEW leaders in Nov so we can begin to climb out of this hole.
anthony sionni
4:23pm on Thursday, July 12, 2012
What happened to our state? What a shame!
donatello gori
6:46am on Friday, July 13, 2012
on the plus side, there is really only one way we can go: UP unfortunately, the boobs in the GA will prevent that and we'll end up going sideways.