Tuesday's Economics

Connecticut is horribly in debt. Economically it is hard to comprehend how Connecticut's politicians were able to get taxpayers into a $3.5 billion dollar + hole but they did. The debt of our state is economically unmanageable-it can not be paid off through higher taxes nor can it be borrowed and paid back that way. Connecticut's economy lags in many different areas thus helping to keep us in a recession for a much longer period of time than other states. The reasons are obvious; we have too high state taxes, we have a poor transportation infrastructure, high transportation costs, high workers compensation costs, and high property taxes to name just a few issues.
What can be done? If I was the new Governor I would take the painfully political approach of contracting state government. For my new fiscal year budget I would cut spending across the board by 10-14%. This would prove to be painful for the bureaucrats and lobbyists who run Hartford but would be the first step to resolving the states economic nightmare. Yes, state jobs would be cut. Yes, state programs would be cut. Yes, there would be shared "pain". However only through the contraction of state government would this $3.5 billion dollar debt start to be reduced and some economic light would be seen at the end of the tunnel. Can this happen? Yes. Will it happen? I am not optimistic, I am preparing to hear how much higher we are going to tax supposed rich people in our state (before they move) and tax businesses more. It is stale economic policy which will keep us mired in this economic debacle called Connecticut.
Wednesday a look at economic and politics on a local level...