According to the New Haven Register, our region may soon see a light at the end of the economic tunnel. The Register’s monthly economic scorecard continues to have mostly “thumbs-down” ratings on the various economic indicators, but inflation is in check and interest rates continue to be low. Donald Klepper-Smith, the economist who compiles the reports, suggested that we’re in the midst of a bottoming process, where the economy may start to show signs of improvement soon.
Unfortunately, most economic indicators have continued their downward trend, with unemployment increasing and consumer confidence decreasing as more people insecure about their jobs and the economy are choosing not to spend on big-ticket items like homes and cars. According to the Register, consumer confidence is down more than 74% compared with a year ago. Housing prices continue to slide and Connecticut residents disposable income has decreased.
That some economic indicators may be improving is an encouraging sign. However, our economic circumstances remain bleak, as Connecticut and other states struggle under the weight of massive budget deficits and continued job losses. Now is the best time for legislators across the region to implement policies that will encourage business growth and create a friendly environment for new business startups. Some of the greatest economic booms have been born out of recession, and New England has a wealth of enterprising businesspeople who would likely jump at the chance to start or grow a business if the right incentives were in place. Policymakers ought to recognize that they have the power to help pull our region out of the recession by creating a business climate that supports job and economic growth.
The full New Haven Register article can be viewed here.
