December 13, 2012
Forbes: RI = 49th "Best" State for Business
Dog bites man, I know, but national publications constantly touting how bad this state is does have an effect. That being said, if recent election results are any indication, Rhode Islanders--well, at least those who stick around--just don't really care.
Rhode Island ranks No. 49 this year, down one spot from 2011. Rhode Island has experienced the second worst net migration, after Michigan, over the past five years. Residents are leaving in search of jobs, as the recent unemployment rate of 10.4% is the second highest in the U.S. after Nevada.Hey, we have the Bay! And we're not the worst state in New England, that's Maine! Yay us.
Another drawback is a lousy regulatory climate. “Rhode Island has one of the worst records on labor market freedom and health insurance regulations,” says William Ruger, who co-authored the Mercatus Center’s Freedom in the 50 States study, which we incorporated into our state ranking. Rhode Island had the fifth worst regulatory environment in the Mercatus study, which looks at labor regulations, health-insurance coverage mandates, occupational licensing, the tort system, right-to-work laws and more.
Rhode Island took a public beating this year when former Boston Red Sox pitching legend Curt Schilling laid off the 300 Rhode Island employees of his video game company, 38 Studios, and the company filed for bankruptcy. Rhode Island’s economic development agency provided Schilling’s company with a $75 million loan guarantee to entice 38 Studios to move to Rhode Island from Massachusetts two years earlier. The loan was made with the idea of Rhode Island reaping jobs and tax income from the move. The economic development agency sued Schilling and several of its former members last month, but it is not expected to recoup much of the loan.