“I think people have elected us to make some big changes going forward, so I don’t want to patch, patch, patch through the rainy day fund and other short term
The new Governor and this generation of leaders has to fix what the older generation has left behind: a State leadership that chronically underfunded worker pensions, that failed to prioritize infrastructure and transit upgrades and repairs; and failure to spur urban growth in a largely suburban and rural State, to take advantage of the rapid ascent of urban life in America.
With huge State budget deficits, how does Connecticut grow its economy as an alternative to raising taxes? That’s the central question facing the new Governor, Ned Lamont and new legislators in Hartford. It seems unlikely that largely suburban Fairfield County is poised for the type of economic growth that can invigorate a lagging State economy beset by huge structural deficits.
In 2019, the Big Fix will have to deal with some troubling indicators: dwindling State population (although it’s not clear if Fairfield County is losing population); demographic changes which show an aging population; and the trend that college graduates flock to cities such as New York, Boston, Denver, and Austin, among others, for better lifestyles and opportunities.
While many economists are trying to predict from where will come the needed growth in Connecticut’s laggard economy , I’ll use the first week of January to also take a look back over events of the past seven years, to remember a time when optimism abounded for the local economy, spurred by startup companies and growth.
2012, was when Congress was enacting the JOBS Act, and crowdfunding was seen as a resource for building new innovative local companies that could hire hundreds of people, and the Stamford Innovation Center opened in downtown Stamford, in the building known as “Old City Hall.” AOL co-founder Steve Case was promoting “StartUp America.” Stamford hosted its first-ever “StartUp Weekend” at the Stamford Innovation Center, to great fanfare.
The State became engaged in promoting, with funds, not only hubs for startup entrepreneurs, but also to provide services to existing small companies to help them dream bigger, and expand, and create jobs, jobs, jobs.
There is no carryover in Stamford from those days; StartUp Weekends are no longer a thing, the Stamford Innovation Center and other co-sharing spaces closed, and the State has had more success luring large companies than growing a vibrant emerging growth company economy. Has UCONN Stamford become a locus point emulating the spur that many college campuses provide to local economies? No, at least not yet. True, some new co-sharing spaces for small businesses have opened, but there are over-the-top amounts of vacant commercial space in Stamford. We need flourishing retail stores, not empty storefronts.
We need to be optimistic that Connecticut cities can become the locus for both traditional businesses, and growth companies, and that retail stores will open, and jobs will flourish. In future blog posts, we’ll be exploring new industries and business trends that can help spur the ailing economy.
