Wednesday, November 19, 2008

New Hampshire's Falling Competitiveness

New Hampshire is a prime example of what Dr. Haughton warned against today in his presentation of the BHI Competitiveness Report. Complacency.

The sixth annual report, released in 2006 ranked NH #3.
The seventh annual report, from 2007, ranked NH #9.
The eighth annual report, released today, dropped NH to #17 overall.

In an apparent attempt to reverse this trend, the state, along with private donors, if offering Massachusetts business owners who are considering moving their company to NH promotional tours.
"They will be picked up at the border in a limo, whisked away to lunch, and offered hockey or skiing tickets and a night's stay in an upscale Nashua hotel...A business recruiter will pitch New Hampshire's perks over lunch before taking the business owner to visit potential relocation sites."
(HT: Nashua Telegraph)

The NH state government could affect the "live free or die" state's ability to attract and retain business and to provide a high standard of living for its residents over the long run by considering where they have relative disadvantages according to our competitiveness report. By making the state more attractive to business, the state would not need gimmicks to lure business owners.

In 4 different areas, NH ranks in the bottom 10:
  • Workers’ compensation premium rates: 46th
  • Crime index change 2006-2007, %: 43th
  • Electricity prices per million BTU: 44th
  • Science & Engineering grad. students 100,000 inhabitants: 41th

Monday, November 17, 2008

State Competitiveness Report

On Wednesday, November 19th, at 9:30 AM the Beacon Hill Institute will present its Eighth annual State Competitiveness Report at the Suffolk University Law School, 120 Tremont St, Boston.

Mass. Governor Deval Patrick will open the event, followed with a summery of the findings by Johathan Haughton, BHI senior economist and lead author of the report. A panel discussion will follow consisting of Greg Bialecki, Massachusetts Undersecretary for Business Development, John Regan, Vice President of the Associated Industries of Massachusetts, and Michael George, CEO of OatSystems, Inc.

The report measures a states ability to attract and retain business and to provide a high standard of living for its residents over the long run.

For prior Competitiveness Reports see the Beacon Hill Institute Website

Friday, November 14, 2008

Wish List cont.

History has shown that the greater threat to economic prosperity is not too little government involvement in the market, but too much,
Our aim should not be more government, it should be smarter government.
2.) I wish that G.W. Bush had actually acted over the last eight years like he believed that statement of his.

(HT: Bloomberg.com)

Wish List

I heard my first Christmas song of the season on the radio, which, combined with reading this article, motivated me to start my wish list

1.) I wish my Senator would craft a bill that would make it a federal crime to reduce total economic benefit.

The BBC article informs us that Senator Dianne Feinstein is
Crafting a bill that would make it a federal crime to sell tickets to the historic event.
with the event being Obama's inauguration.

Currently 240,000 tickets are being handed out to the public, free of charge by Senators, while there are reports that tickets are going for as much as $40,000 each.

My assumption is that these tickets are going to friends of(or people that gave money to) the senators. At a minimum they are going to people who would like to see the event.

The bill that Senator Feinstein is purposing would make it a federal crime (meaning that the FBI has jurisdiction to investigate) to use the free market for economic gain, also known as Capitalism.

Using a quick cost benefit rationale, if I received a ticket I would value it at a given amount (say $100). If someone valued seeing Obama's inauguration at $50,000 and offered me $40,000 for the ticket. Common sense would lead me to sell the ticket, amassing $39,900 of benefit for myself, and allowing my counter party to gain $10,000 in economic benefits. Total economic gain to society is $49,900.

I'm not sure why the Senator decided the government needs to be involved in this issue and prevent both sides from gaining.

Due to the public perception that "deregulation" and the "free market" caused our current economic woes, I hope that my Senator will not step in the way of personal decisions.

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