20 June 2009
Symptoms of illness come on so slowly sometimes that the afflicted simply accommodate discomfort by nearly imperceptible changes in lifestyle. Slight difficulty breathing - blamed on overexertion. Muscle aches - blamed on too heavy lifting. Do a little less day to day. Accomplish a little less month to month. Accommodate, accommodate until suddenly, real sickness is diagnosed and all that all the medicine and all the doctors in the world can do is stabilize an unhappy state of corruption.
Ignoring and accommodating symptoms of unwise and poorly thought out political policy choices is what causes town, state and national governments to similarly run to ruin.
Accumulated images of gorgeous hills, high pastures, verdant fields and quaint valley towns nestled, seemingly, in another era is what mostly draws attention to the state of Vermont. Since 1947, through its magazine, Vermont Life, Vermont state government has aggressively marketed rusticity and rural romance to such effect that when Americans dream of quintessential country life they usually imagine it happening only in Vermont.
And because Vermont is located within a three to four hour drive from an urban-suburban population of around sixty million people, it has become famous for hosting glorious weekend visits for folks with almost too much disposable income.
Vermont, pretty, pretty, so long as one ignores that upon graduation from high school, that it banishes its young to other states for lack of local jobs.
Vermont, pretty, pretty, so long as one ignores a tax and regulatory environment that treats anything except boutique business growth as if disgorged from the loins of vampires.
Whatever economic vitality that Vermont might have once had began to seriously atrophy beginning in the 70’s as flower children from the Vietnam War era moved in with the intent of promoting and effecting a leftward economic and social transformation of the state. While Vermont has not become one great commune as envisioned by some from that era, there is no question that Vermont government today is decidedly anti-capitalist.
After 30 years of “progressive” political “change,” Vermont now sports nearly the highest personal income tax rate with nearly worst progressivity. It boasts one of the country’s highest marginal corporate income tax rates and nearly the highest worker’s compensation costs. It has the second highest property tax burden. It imposes the highest inheritance/income tax. It is seventh highest in government workers per-capita. The accumulated overabundance of disincentives for growth cause potential investors to view Vermont as economically toxic.
Depending on choice of study, Vermont is currently ranked either worst or second worst state for economic potential. Were it not for tourist dollar subsidies and taxes gleaned from a plethora of second home owners, wealthy tax-hedged retirees, and new, financially set Green Acres types playing farmer in and about its rolling green mountains, Vermont would be viewed as an Appalachian dead zone. Vermont may be a fine place to play out rural fantasies but its tax and regulatory structure so seriously discourages new economic growth that the consequent lack of financial opportunity makes Vermont a poor place for any kind of generational commitment.
In the 70’s, when Vermont chose to turn left, New Hampshire turned right, toward opportunity and growth and unlike Vermont, promoted low taxes, low government spending and a friendly business climate. As Vermont’s economy spiraled downward New Hampshire’s grew from that of an empty mill, economic-sinkhole of an economy to becoming the most vibrant place to do business in the Northeast, the 6th wealthiest state and the best state to live in.
The bad news.
The year 2008 marked the second year of control of New Hampshire’s political apparatus by the same political ideology that presided over Vermont’s slow economic collapse.
The year 2008, also marks the year that New Hampshire began to bleed population, the state’s economy began to founder and wealth and industry began to depart.
Despite these fearful changes, those now in political control of New Hampshire’s economic future have chosen to increase taxes and fees and to grow state government.
New Hampshire’s 2007-2008 legislature increased state spending nearly 18%. The same folks are currently proposing another 12% increase in state spending and imposing even more new taxes and hikes in fees all around.
The symptoms of New Hampshire's decline are now upon us.
Is Vermont’s sad economy New Hampshire’s future?
Hon. Paul Mirski, POB 190, Enfield Center, NH 03748 – Tel: 603 632 5555