ECONOMIC GROWTH
Economic growth is the increased production of goods and services over a stated time period. It is our economic engine.
Factors that Affect Economic Growth
It is easy to find sites that help define what affects economic growth and most will include those found here. Natural resources will assist in production of goods as well as produce goods to be exported. Infrastructure is transportation, energy grids, communication networks, and existing structures. What are the demographics of the population? Human capital is necessary and an educated working age population is ideal. Technologies improve efficiency in production of both goods and services. Government regulations may hinder or help businesses get to production. Some have argued that taxes affect economic growth, however the Congressional Research Service disagrees. See below.
An extensive historical research spanning the last century of the American economy was conducted by the nonpartisan Congressional Research Service(CRS). It is a government agency that services all members of Congress and the President. It released a report concluding that tax cuts do not create economic growth. Because it contradicted a long-held belief by some in Congress, the agency was threatened with potential loss of Congressional funding if the report was not removed from their government website. It is CRS report R42729 and can be found here.
Our economy is a 70% consumer driven economy. As the working class is feeling the financial squeeze, we stop spending on what are considered luxury items and sometimes even cut back on essentials. CT economic growth will be hampered by several keys issues. CT has an aging population and low birth rate.
CT's economy shrunk by 4.6% in the first quarter of 2020 due to the coronavirus. Connecticut ranked 33rd on economic growth in 2019 compared to to other states.
CT ECONOMIC GROWTH 2020: 4.6%
Manufacturing Growth
In 2017, manufacturing employment increased in five of the six New England states; Maine (2.9 percent), Connecticut (2.6 percent), Rhode Island (2.5 percent), and New Hampshire (2.5 percent) all experienced manufacturing job growth above the national rate for that supersector (2.0 percent) in a report by Bank of Boston citing Bureau of Labor Statistics.
CT Initiatives to Support Businesses
CT established the Department of Economic and Community Development (DECD) in 2014. The CT Manufacturing Innovation Fund falls under the DECD umbrella. They help CT manufacturers improve productivity by offering grants for capital investments to help keep our manufacturers competitive. Near 60 million in grants have been dispersed so far.
Various Reports on Connecticut Economic Growth
Connecticut Economic Outlook for 2018-2020: A Perspective from Sacred Heart University Students in Business Economics
CT Industries
US ECONOMIC GROWTH 3rd quarter 2018: 3.4%
The Bureau of Economic Analysis is responsible for reporting on our country's economic growth.
http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
THE EFFECTS OF STIMULUS ON MIDDLE CLASS INCOMES
During the Great Recession of 2009, many Americans did not understand the mechanisms of Economic Stimulus (government spending) at a time when the economy was collapsing. This report released by the Congressional Budget Office (CBO) demonstrates how much it helped recover middle-class incomes and its findings support the idea of government intervention when private sectors are either unable or unwilling to act in an economic crisis even if faced with increasing debt.
ECONOMIC MOBILITY
Economic mobility is the American Dream and our capacity to rise up on the economic ladder of success. Eight states, primarily in the Mideast and New England regions, have consistently higher upward and lower downward mobility compared to the nation as a whole." according to the Pew Charitable Trust report. CT is among the six states with numbers that rank in measurable upward mobility. Take a look at the interactive maps on their site.
CT ECONOMIC MOBILITY
CT enjoys a higher than the national average of upward mobility and is among the highest in the nation.
USA ECONOMIC MOBILITY
Recent reports the USA falling to 10th in the world for upward economic mobility. The growing disparity of wealth is causing a fall in opportunity for economic advancements as well as innovation.
Center on Budget and Policy Priorities (CBPP) Chart Book: The Legacy of the Great Recession
The Great Recession had a lasting effect on the lives of many Americans who financially suffered enormous economic losses. This report charts the nations recovery with the longest job growth recorded in US history.