EAST HARTFORD – The new study by Arthur Laffer and the American Legislative Exchange Council (ALEC) is the latest independent assessment reaching the same conclusion: Connecticut’s economy is among the very worst in the nation.
In the annual “Rich States, Poor States” study, Connecticut ranks 46th in the nation in economic performance, and 43rd in its forward-looking economic outlook. Connecticut has slid from 32nd on the list – still a poor ranking – as recently as 2009. Dragging Connecticut down in the ranking are lousy scores for recent tax increases (49th in the nation) and high workers compensation rates (also 49th), among 15 component measures considered in the Laffer index.
Connecticut has fallen behind regional neighbors including New Jersey (39th), Massachusetts (29th), and New Hampshire (27th).
“Gov. Malloy keeps insisting that all is well in Connecticut, but study after study by independent research organizations conclude that Connecticut’s high-tax, high-regulation environment is stiffing growth and causing Connecticut to fall further behind other states,” said Fergus Cullen, Executive Director of the Yankee Institute, the Connecticut thank tank that supports free market approaches to economic issues.
“What would help Connecticut reverse this trend and get back on track economically would be to adopt pro-growth economic policies starting with spending cuts, tax cuts, pension reform, and less regulation,” Cullen said.