CT NFIB to Malloy: It's Still Raining on Main Street

Date: February 06, 2014

Related Content: News State Connecticut

Hartford (February
6, 2014)
– The National Federation
of Independent Business (NFIB)
today cautioned lawmakers that Governor Dannel Malloy’s rosy
assessment of the state’s fiscal condition ignores Connecticut’s fragile
economic condition.

“Every governor tries to paint a pretty picture of
the economy but Governor Malloy today seemed to be describing an economy that
most small businesses don’t recognize,” said NFIB State Director Andrew Markowski.  “We’re not going to solve our problems by
denying that they exist.”

According to the Connecticut Center
for Economic Analysis
at UConn in a December report, the state’s marginally
better unemployment rate “is a smoke screen covering the true
situation.”
  It concludes that
while there has been slow job growth, lower unemployment in Connecticut is due
mainly to residents dropping out of the workforce and not the sort of robust
economy that Governor Malloy described today in his State of the State Address.

“In other words, our economy is so weak that
people have given up looking for jobs,” said Markowski.  “The truth is that small businesses in
Connecticut are reluctant to hire because doing so is increasingly expensive
and job seekers are naturally more frustrated.”  

Far better than the Governor’s narrowly targeted
approach that features small assistance programs for some businesses would be a
pro-growth tax strategy that returns money to the businesses, consumers and
investors who earned it in the first place, said Markowski.

“The Governor’s plan for the surplus is
exceedingly modest and we wish he would have taken a more honest view of the
state’s economy and confronted the elephant in the room,” he said.  “Government at every level in Connecticut
takes too much money from the private businesses that create jobs and
opportunities.  Instead of making people
qualify to get a little of their own money back, we should be downsizing government
so businesses and consumers can keep the money they earn and invest it on their
own terms.”   

Malloy this week surprised everyone by calling for
another increase in the minimum wage only a year after having worried publicly
about its impact on small businesses.  He
repeated that call today.

“There’s not an objective economist in Connecticut
who believes that the economy has improved so sharply that another arbitrary
increase in labor costs can be justified,” said Markowski.  “The Governor essentially rationalized his
support for another big increase on the basis of higher corporate profits.  But Wall Street profits are not an indication
of what’s happening on Main Street.  It’s
still raining on Main Street. 

“It’s disconcerting for businesses that need predictability
that the Governor’s economic policies seem to be so fluid,” he continued.  “Small businesses spent 2013 reshaping their
payroll structure to accommodate last year’s increase and now they have to go
back to the drawing board.  We can’t keep
switching channels like this and the Governor should pick a vision and stick to
it.”

To learn more about NFIB please visit www.nfib.com.

Related Content: News | State | Connecticut

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