Southwestern Connecticut is a one-hour commute from New York City. This part of Connecticut is full of rich, super-rich and mega-rich people who work in the City and on Wall Street and who live in elite towns like Greenwich and New Canaan, and on sprawling estates on Long Island Sound.
Connecticut also has some big corporations, and wealthy Yale University. This all helps to make Connecticut the richest state in the nation per capita, yet it has one of the worst fiscal outlooks in the United States.
This is no surprise. Connecticut has a left-wing Democrat governor; two left-wing Democrat US senators (including Richard Blumenthal who claimed that he served in Vietnam but didn’t); while all five of its US House members are liberal Democrats. The state Senate is split 18-18, and the state Assembly is now 79 Democrat and 72 Republican.
Connecticut’s economic problems stem from the same sources as most states’ problems – Connecticut over-taxes everyone and then over-spends wildly on unionized public employees; on hundreds of inefficient and corrupt government operations, including public transit; and on the Welfare State ‘poor’. Democrats are doing nothing about any of this; they are encouraging it since it gives them power while the state suffers as a result.
Here are excerpts from a Fox News article called Connecticut, home to great wealth, may be sinking into a fiscal mire by Elizabeth Llorente that shows what has happened to the state’s wealth. Each excerpt is followed by a Nikitas3.com comment:
Llorente writes: Home to Yale University with its $25-billion endowment, numerous high-flying hedge funds and top-drawer celebrities ensconced in opulent estates worth tens of millions of dollars, Connecticut possesses great wealth and boasts the highest per capita income of any American state.
But look a little closer and it’s a fiscal train wreck. The Constitution State is among the worst states when it comes to business costs, economic climate, growth prospects and regulatory burdens. Ground zero for this train wreck is the capital, Hartford.
The administration of Gov. Daniel Malloy, a Democrat who has been in office since 2011, projects a budget deficit of more than $5 billion over the next two years, thanks to generous pension benefits and the burden of servicing its big debt, plus falling tax revenue due to the exodus of large employers and residents reaching retirement age.
Nikitas3.com comment: The Democrats are crooked too. Malloy won the 2010 election by a razor-thin margin through voter fraud in the Democrat stronghold of Bridgeport. Everybody knows it. He even joked about it.
By the way, the “exodus” is largely to escape Connecticut’s high taxes.
Llorente writes: (Connecticut’s) budget woes, as well as concerns that they will be repeated year after year, helped lead General Electric (GE) in 2015 to consider moving its headquarters out of the state. Last year, it did exactly that.
Nikitas3.com comment: This was a big shock for Connecticut and it came after Malloy and the Democrats stuck GE, and most other hard-working and taxpaying people in Connecticut, with a big tax increase. GE moved to Massachusetts where Republican governor Charlie Baker welcomed GE with a better business climate, and with lower income tax rates for GE executives too.
Llorente writes: (Connecticut’s) population is falling: Its net domestic out-migration was nearly 30,000 from 2015 to 2016. In 2016, it lost slightly more than 8,000 people, leaving its population at 3.6 million. Indeed, recent national moving company surveys underscore the trend, showing more people leaving Connecticut than moving in. In 2016, the state also saw a population decline for the third consecutive year, according to Census Bureau estimates.
Nikitas3.com comment: Socialist theory says that productive people will move into socialist states to enjoy all of their government programs, and that eternal happiness will result. The theory is 180 degrees wrong. These socialist states actually become bastions of poorer, older and sicker people as young and productive people and the middle class and upper classes flee the taxes and the Welfare State, along with businesses and corporations, like GE.
Llorente writes: One of the companies, United Van Lines, reported that of all their Connecticut customers, 60 percent were leaving compared to 40 percent who were moving there. Only three other states had higher rates of people moving out – New York, New Jersey and Illinois.
Nikitas3.com comment: These four states are or have been strongly liberal states, which is why people are leaving. But that is now changing. The people have seen the truth.
Peter Lumaj (see bio at the end of this commentary) may run for governor of Connecticut in 2018 as a Republican reformer. Lumaj is a real dynamo, an Albanian immigrant who flourished in America. He once worked under Rudy Giuliani. Nikitas3.com predicts that he will run and win.
Llorente writes: Some of (Connecticut’s) most prominent economic experts blame present and past political leaders for the crisis… As a partial solution, Malloy and state employee union leaders agreed earlier this week on a tentative proposal calling for concessions by the worker groups of about $700 million for the next fiscal year, and slightly more than $800 million for 2018-2019. The plan, which faces a vote by member unions, would freeze wages for the next two years, but then give raises of a base of 3.5 percent the following two years.
The Services Employees International Union’s Local 1199, which represents 7,000 state workers, has taken a very vocal stance against the governor’s proposed cuts and employee layoffs. The union has denounced the governor’s proposal for cuts as heartless, and says it will hurt those who already struggle and are the state’s most vulnerable, including children and the disabled.
Nikitas3.com comment: Oh, boo-hoo. This is the usual whining from the left. Wisconsin, Ohio and Michigan all elected conservative Republican governors in 2010 who took on the pampered unions and the coddled Welfare State and got their states back on track. So did liberal New Jersey in 2009 with Chris Christie. Illinois elected a conservative Republican governor in 2014, as did liberal Maryland. Even Vermont did so in 2016! Even Detroit is rebounding under Michigan governor Rick Snyder after decades in which we were told that these states could never come back.
Llorente writes: Already (Connecticut’s) richest residents pay a huge portion of state revenue: The top 1 percent of the wealthiest residents … already account for about 30 percent of state tax revenue.
Nikitas3.com comment: But that is not enough for the Democrats. They want 40% or 50% or even 100%. Because socialism is based on greed, and envy of successful people. And expectedly socialism repels successful people and successful companies like GE.
Llorente writes: There have been some tax proposals that don’t target the rich, but it’s hard to imagine those making a dent in the problem. Some state legislators suggest legalizing marijuana as a new tax source, as well as new tolls and a new casino. Other legislators and economic analysts say one remedy is to start taxing services, such as dog grooming.
Nikitas3.com comment: Oh, sure… casinos, higher road tolls, marijuana and more taxes on small business. That’s another ‘magic bullet’ coming from the Democrats that will finally finish off the economy. No wonder sensible Americans are getting the heck out of these liberal states.
Hey, how about cutting state spending?!
Democrats will never do that seriously. That is why we need strong leaders who will put their foot down. Go Peter Lumaj!
Now here is a profile of Mr. Lumaj from his own website:
Peter Lumaj, was born and raised in communist Albania. Lack of freedom and opportunity in his homeland encouraged Peter and his three brothers, to escape oppression and settle in the United States. They left behind their parents and their seven other siblings, who suffered severe persecution at the hands of the communist government.
Once in the United States, Peter learned English and enrolled in the City University of New York. While attending college, Peter worked as a porter and a doorman to support his family and to pay for his education. Peter went on to graduate Cum Laude with a BA in Political Science. Later, Peter enrolled in the Benjamin N. Cardozo School of Law. While attending law school, he worked as a fraud investigator in the Giuliani Administration. Currently, Peter is a small businessman, a practicing attorney and the owner of the Law Offices of Lumaj.
In 2014, Peter was selected as the Republican nominee for Connecticut Secretary of the State. In the 2014 general election, he is credited with running one of the closest races for statewide office in recent history in Connecticut.
Recently, Peter opened up a 2018 Statewide Exploratory Committee to look into the possibility of running for statewide office in Connecticut in 2018.
Peter Lumaj resides in Fairfield, Connecticut. He is married to his wife Mary, and they have three children: Frank, Amy, and Larisa.
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