Connecticut-The Zone Of Opportunity Lost

 Why does Connecticut have so many economic problems?  It seems for the past 35 years Connecticut has had one economic problem after another.  Not much changes over the years.  And contrary to the standard party rhetoric on how safe and economically robust Connecticut is, there is still a massive crime and drug problem and economic malaise that has impacted Bridgeport, Hartford and New Haven for years, all of which have become incredibly exacerbated since the takeover posture of Covid-19. 

For these cities, and for the state, it is insulting the definition of the word “obvious” that the solutions offered by the Connecticut Democrat Party have been nothing but destructive.

As just one example, last week on the 94.9 “Lee Elci Show”, my friend and colleague Tony De Angelo well-covered the farcical and arrogant “economic development” endeavors of the Federally-Investigated Connecticut (should-be-abolished) Department of Economic and Community Development, such as “The Pizza Trail” and the multi-million dollar “QuantumCT” (TONY DE ANGELO-LEE ELCI- LEE ELCI SHOW 10 14 2025) . To me, the biggest point that Tony made was that while these bogus endeavors continue, real economic endeavors and opportunities are completely blown by self-aggrandizing and delusional leaders, even though these opportunities are producing extremely well in other places. 

Perhaps the biggest of these blown opportunities is the reinstatement and establishment of new Qualified Opportunity Zones (“Opportunity Zones”).

In a simple definition, Opportunity Zones offer great tax savings to private investors in designated depressed locales if they stay invested for a decade, and this is exactly the medicine that poor urban areas in Connecticut need. No taxpayer contributions are required. Presently, Connecticut has 72 federally designated Opportunity Zones, and due to the sad economic state of the state can have 150 more under OBBBA, thereby taking up 25% of the entire state. Development tracts in Connecticut cities and rural areas are crying for any new capital and economic life. However, at the rate Connecticut is proceeding, it is in danger of losing its presently existing Opportunity Zones along with the potential of establishing more as there are strict deadlines. But money will move elsewhere. Stupidly, finite investor capital will find its way to better and more competent locales. And what investors want, is facility and fluency from government. 

To this end, I would bet you five dollars if you walked up to most any Connecticut elected official and asked them what an Opportunity Zone is and what it does, you will be greeted by a blank stare and a shake of the head.

But sadly, people believe what they want to believe. Perhaps this ignorance is fashioned in the delusion that Connecticut is this magically wonderful place that is sought after by millions as Connecticut continues on its current path. If one reads about Connecticut through the eyes of political bureaucrats, one may wonder what state they are talking about since it certainly does not sound like Connecticut.  For example,  the state's website, in the area they discuss "Why CT”,  "Connecticut ranks among the nation's top states for quality of life. Great public schools, scenic suburbs, a low crime rate, vibrant yet manageable cities, access to exceptional healthcare, and a diverse array of recreational options are just a few of the reasons why so many enjoy living here."... "Long known as a leader in advanced manufacturing, aerospace, finance and insurance, Connecticut is also home to thriving sectors in bioscience, green energy, technology and digital media. This array of rapidly advancing industries positions the state for continued growth".   (https://portal.ct.gov/ChooseCT/Why-CT ) If Connecticut is so great than why does it have 72 federally designated Opportunity Zones? Why can it have 150 more? Why do the arrogant powers that be not take advantage of great amounts of private capital that will revitalize these tracts? How can it be considered a leader in business when Connecticut ranks as a bottom five state in most business economic activities and one the highest taxed states in the country? 

Why do these economic birdbrains persist in these farcical “something CT” economic endeavors that continually do nothing but give the illusion of economic vitality but simply burn taxpayer money? 

Why do Republicans never attack and criticize this sham of the Department of Economic and Community Development?

(Sadly, I can go on).

But if you look hard, you see a fake effort made on the Department of Economic Development state website . Here, we see this description  "To encourage additional development, DECD has been authorized by the legislature to identify, market and ultimately sell up to 10 (COUNT EM, 10) vacant state-owned properties located in Opportunity Zones. Various agencies within Connecticut state government are also working collaboratively to identify other incentives to maximize the investment in Connecticut’s Opportunity Zones." (Ibid)       But ask yourself something: All the tax credits, gimmes, and free Taxpayers monies in the world for the past 35 years has never resolved the economic problems especially by the failed Connecticut Department Economic and Community Development.  The department that offers no transparency and has been a failure in the money it continues to give away with no accountability as to whether it gets paid back. The Department that is watching serious capital go to other landscapes while it promotes "pizza".

Just look at the no answers to the SEMA-4 debacle of Connecticut Taxpayers monies and the involvement of the Department of Economic and Community Development with that.  Go all the way back to the Malloy "First Five" , the farcical "Back-9 Network" and the bulbous and wasteful over-building of UCONN, now crashing under its own weight. As politicians back-slapped each other with all of these pies in the sky, honest taxpaying citizens received boots to their posterior regions.

One must also wonder why a state as small as Connecticut has potentially 25% of the state qualifying as sufficiently depressed to be Opportunity Zones?  This comes about from a variety of factors including, (but not limited to), businesses leaving the city and state due to high taxes, high crime, high workers compensation costs, a lack of skilled workforce for that industry and a poor infrastructure. 

It is often said that Connecticut needs more housing which is particularly puzzling in a state with a decreasing population. But take one look at the dastardly and destructive anti-landlord rental laws of Connecticut. Houses and apartment buildings in the inner cities of Hartford, New Haven, Waterbury and Bridgeport have turned into many cases of being drug dens and slums.  Thus, the buildings and areas they leave are often neglected due to the landlords not having rental income coming in.  No income equals no monies for upkeep.  This also leads to bankruptcy of the individuals and companies that own these same buildings.  Government officials came up with the stoic plan of using Taxpayers monies in the form of zero interest loans, tax credits and cash incentives to try to rebuild these failed areas.  However, it is evident that if things do not change in a hurry,  the same problems of  high taxes, high crime, high workers compensation costs, a lack of skilled workforce for that industry and a poor infrastructure will again be the stumbling blocks of economic prosperity for any decent economic effort put forth in Connecticut.

In addition, many economically inane Connecticut politicians are fixated also on building both low- and high-income housing near train and bus stations in the state, overriding local zoning officials.  Any sane person knows that these deals are bound for failure as you can build all the "affordable" and or non-affordable housing you want, but if there are no jobs for these people nothing will change. And if you cannot build an economy by using real economic drivers and genuine business instead of pizza and computer concepts, you will not have workers to support the project, leading to the greatest slum developments since Father Panik Village and the gold standard of Cabrini Green in Chicago, which all ended in a hail of needles, bullets, and destruction.

However, the fiction of Nutmeg-wonderfulness continues unabated.  What is really funny is this public relations gem: "Governor Lamont, his administration and the state legislature are committed to helping businesses thrive in Connecticut. Already, they’ve implemented a host of measures to enhance the state’s long-term fiscal stability, control taxes and streamline state government." (https://portal.ct.gov/choosect/opportunity-zones). Sort of like Lamont's measures to enhance his family's hedge fund profits through Infosys Limited, Digital Currency Group and its affiliates, "ADVANCECT", Boston Consulting Group, UNITE US (CT), Mt. Sinai Genomics, "Thermo Fisher Scientific", "Sema 4", " Core Informatics", "Ocrulus", "Urjanet", "1life Healthcare", "Galileo Health", "Castlight Health", "Paladina Health", and "VillageMD"“The Horsebarn Hill Investment Fund”, McKinsey, “CT Next”, and Tidal River Fund, to name a few. 

It is quite clear that any “commitment to fiscal excellence” in Connecticut is limited to the elite on the Lamont bench. Further, Connecticut still has $100 to $150 billion dollars in short- and long-term debt along with unfunded liabilities well more than the “fiscal guardrails” we hear so much about  

Economic change in Connecticut is hard to come by as the political nepotism system of economics is still alive and well.  There is no transparency from an economics perspective in state government.  It is an entrenched political bureaucracy that sucks out the last breaths of economic prosperity daily.  Look at how many jobs and businesses were lost forever due to the draconian Covid-19 lie.  Connecticut would become an economic powerhouse with the elimination of the DECD and an overhaul from top to bottom in its state government, a sound and flat tax policy, and a commitment to business development by attracting new capital and business to 25% of the sad and decrepit state via the aggressive pursuit of Opportunity Zones as just one example.   

Is there hope in Democrat-driven Connecticut? Perhaps we will finally see the light going on in Republican camps all over the state aggressively attacking this horrific situation. But sadly, citizens have waited far too long for any effective advocacy and are odds-on favorites to see, yet, another opportunity, lost.

 

Editors Note; The next Swick Speak blog will be on Saturday November, 1.