Written by Akram Alhadainy
Edited by Gabe Agüero & Ben Peters
Even before the pandemic, Connecticut has been heading towards an economic catastrophe. This unfortunate reality has been displayed in multiple phenomena: the inability of the state to fully recover from the great recession, the greater job loss compared to the federal scale, and a massive state debt. “A new annual report from Truth in Accounting found that Connecticut has $67 billion in bonded debt and unfunded retirement costs, making it the third most indebted state per taxpayer in the nation” (Fitch). These economic issues have led to an economy that predominantly grows on low-wage, low-skill jobs and is underdeveloped in terms of modern industries and infrastructure. Based on such information, Connecticut is projected to continue suffering from economic problems related to the pandemic until 2030.
Reliable infrastructure is essential to broadening economic opportunities within the state and connecting supply chains and efficiently moving goods and services across state borders. Connecticut lacks the reliable infrastructure that is uniquely crucial for the economy due to the state’s location between the municipal hubs of New York and Boston. Infrastructure also benefits the economy indirectly by connecting households with urban areas that have high employment opportunities and education, vital components for any economic growth. Our Governor acknowledged the benefits of a well-established infrastructure system, and he has been working with agencies to ensure proper funding and efficiency. In the Fiscal Year 2022-2023 Biennial Budget Address, Governor Lamont has emphasized infrastructure as one of the administration’s five priorities. He has also advocated for the infrastructure deal that was approved by the Senate, in an attempt to stop the state’s economy from further regressing. Should infrastructure upgrades occur, there would be immediate job opportunities due to the construction jobs that would be made available.
Comparable to the need for infrastructure transformation, it is necessary to have a state
policy shift to target fostering growth in IT related industries. Recently, the insurance and financial sector, a leading industry of the state’s Gross Domestic Product (GDP) and an increasingly IT-intensive field, has shrunk by a quarter due to the state’s underdevelopment in the field. Such businesses use technology in tracking data of sales, expenses, and productivity. This information gets used in strategic planning as well as the tactical execution of that strategy. Consequently, high investment returns could be expected, an appealing concept to any business. The current gubernatorial administration has started addressing the state’s shortfall in the industry and therefore has considered it as a priority alongside infrastructure.
Lastly, there should be a shift from Connecticut’s dependency on low-skill, low-wage jobs. Such industries, like agriculture, fishing, tourism, and entertainment, constitute a considerable portion of the GDP of the state, but these low paying jobs have been among the most vulnerable to the pandemic: “The 277,000 residents who were unemployed here in April, the single-largest number — about 74,600 — worked in leisure, such as restaurants and certain types of retail, and hospitality before losing their jobs” (Phaneuf). To combat the vast, rising unemployment rate, the state administration has expanded free job training programs and recently students of this program have entered Connecticut’s workforce.
If the state could implement a strategy to overcome the aforementioned obstacles, it would represent a great step toward economic recovery and technological modernization, combating the ongoing recession in the process.
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