Connecticut's Method of Eliminating Unemployment

The State of Connecticut has discovered a method of preventing job layoffs.

Blumenthal Wants Connecticut Regulators To Block AT&T Job Cuts - The Hartford Courant

AT&T (T) said last month that it would pare its Connecticut workforce, which totals about 6,800, by 400 jobs and transfer another 60 jobs to Michigan. A day after the news broke, Attorney General Richard Blumenthal, flanked by union leaders, implored state regulators to block the cuts with the force of law while the state investigates the impact on customer service.

“This is not about AT&T. This is not about Blumenthal. This is about the kind of message Connecticut is sending to business — a state that has no positive job growth and [has] people who are falling over themselves to prove that they’re pro-consumer by showing they’re anti-business,” AT&T spokesman Dave Mancuso said.

State regulators have so far denied Blumenthal’s requests, without listing specific reasons.

Blumenthal’s call for a stay on layoffs has only intensified AT&T’s growing frustration with operating in Connecticut. During an economic conference in September, AT&T’s eastern regional manager urged government officials to scale back regulation and let the company do its job. “We don’t need policy-makers stepping in and telling us how to do it or where to do it,” Chad Townes said at the conference.

Though parts of AT&T are regulated, the company is increasingly operating in a competitive marketplace that demands lower costs and lower prices.

“In order for them to be competitive with other carriers, this is what they have to do,” Kagan, the telecom analyst, said. “If they have to start worrying about how many jobs they have to leave in how many states … the company would be doomed.”

Layoff Bans Are Counter Productive

Under the guise of preserving customer service the Attorney General's attempt to block job cuts will only further destroy Connecticut’s ability to draw new businesses to the State. The Attorney General should know better and his actions seem more directed to pandering for votes rather than improving the business climate in Connecticut.

If prohibiting job layoffs is a great idea, why not extend the theory of a centrally planned economy even further? Prohibit all layoffs by every business operating in Connecticut. Extend this logic further and pass a law forcing AT&T and every other business in the State to hire new employees until the unemployment rate reaches zero? Excuse me for saying so, Mr. Blumenthal, but this tactic has failed in every socialist state on the planet.

Attempting to prohibit layoffs is total lunacy and it will not work. My advice to the Attorney General: Instead of creating a hostile business environment, Connecticut should be focusing on sensible issues that will foster economic and job growth.

If the Attorney General really wants to help Connecticut’s economy, here’s something sensible that he can work on.

Tax Foundation - Connecticut 3rd Highest Tax Burden in Nation

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Connecticut taxpayers had to work until May 8 (the latest in the nation) to pay their total tax bill, 15 days later than the national Tax Freedom Day (April 23).

Connecticut’s State/Local Tax Burden Third-Highest in Nation
Connecticut, currently ranked 3rd highest, has risen 21 places over the last three decades and now holds a place among the nation’s highest-tax states.

Connecticut’s 2008 Business Tax Climate Ranks 38th
Connecticut ranks 38th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property.

Connecticut Levies Sales Tax above National Median; Gasoline and Cigarette Taxes among Nation’s Highest

Connecticut Residents Are Voting With Their Feet

The Connecticut State Data Center says figures from last year show the population growth in the state is very small.

The University of Connecticut-based center says Connecticut’s population grew by less than two-tenths of 1 percent last year.

There is a connection between high taxes, job losses and zero population growth. Connecticut has become a very high cost state for both residents and employers. If Connecticut really wants to increase jobs in the state, attention should be focused on lowering taxes. Foolish, politically motivated schemes such as prohibiting layoffs will only lead to further job losses.

Disclosure: None

Comments

[Al-USA:]

"
the theory of a centrally planned economy
"

With all due respect to the author, we already have one, but it is aimed at securing the interests of capital, in particular the failed banks which are now being bailed out by $trillions in newly printed dollars. A centrally planned economy for the benefit of the financial aristrocrats which precipated the "financial crisis" with their arrogance in their $300 trillion derivative games.

"
this tactic has failed in every socialist state on the planet.
"

Correct, it failed when applied to labor, and it most likely will failed as applied to the capital of the fallen financial Wall Street "wizards".

I take that back, it will succeed in transferring the wealth of the working class to the otherwise insolvent capitalist elites of the financial markets.

All in all though, the approach dooms one side or the other. Just a thought.

Jan 26 07:43 AM

[boodyman:]

The telephone service in Connecticut has gone downhill the last few years. We now have dispatchers and technicians in the mid west who know a lot less about our plant giving us a lot less support. In fact , it takes them a couple of minutes to get Connecticut up on there computers. Enough corporate welfare already. All these people know how to do is take.

Jan 26 07:48 AM

[notsosmart:]

blumenthal is just running for governor.you cant believe a word he utters.you can hardly believe anyone anymore in business or politics.he ought to cut the state employees & make the rest pay half of their health ins.does he contribute to his own health insurance.? one guess

Jan 26 10:38 AM

[Glen L.:]

" Attorney General Richard Blumenthal, flanked by union leaders, implored state regulators to block the cuts with the force of law"...

Gotta love it! One can almost see the union guy in the back, impatiently slapping the blackjack into his palm.

Jan 26 10:40 AM

[speculari:]

The state of CT has been driving employers out of state so consistently over the last fifty plus years that the only burgeoning business left would likely be a livery or limousine service! (outbound)
Forget about "offshore", the number of companies that simply "packed up" & headed to other more attractive states, because of; taxes, labor availability, "climate"(in both the meteorological & economic/political sense) - are simply too numerous to mention.
None of the legislators, politicians, members of executive or, judicial branches of the state goverment "get it".
The state goverment in CT has been "broken" for a very long time, irrespective of political party, and is not capable of correcting its massive mindset that every tax, fee, licensing, tariff, fine, penalty, union rule, non-union rule, etc. is "golden" & immutable.

Jan 26 12:18 PM

[Leftfield:]

Thanks for airing this rare publicity of the burdensome, arrogant intrusive control culture we pay such a high price for in Connecticut. Blumenthal has his mug shot in every publicity stunt he can share with any A.G. in the country. He seems not so much involved in noticing the rampant corruption by his peers here, though. Not his thing.

Until 1961, CT. was the most heavily industrialized state. Until 1988, United Technologies were the highest employer until the state government passed it. Those trends only got worse. In 1983, the state budget was $3.3 billion. Now it's about $20 billion.

Not to mention the enormous mandates such as highest-in-the-nation teacher pay mandated by the state with soon-broken promises of 50% copay. Making the local property tax absolutely oppressive.

No issues of common sense for ordinary people find traction here. The Hartford Courant, a monopoly, doesn't probe or ask hard questions that aren't part of the la-la left agenda.

As for unions, I recently heard a high union official on Bloomberg radio who says unions will be pushing Obama for automatic union ratification if any wrongoing is found by companies involved in any unionization campaign. Whew!

Sorry, didn't intend to give Blumenthal a new idea.

Jan 26 04:03 PM

[Rob Viglione:]

For how long will we let these people ruin our country???

Jan 26 11:52 PM

[HAA!:]

screw all of you and us the US who think it's ok for business to layoff willy nilly whenever the economy looks grim. Just wait for this snowball effect of less jobs, less spending, less jobs, less of everything results in the apocalypse. This experiment in democracy and capitalism is quickly racing to the bottom line, no jobs, no spending, no civilization. So we'd better embrace socialism immediately or we're all screwed...

Jan 27 11:13 AM

[EX SNET now...:]

First as a Utility company and second as a sloven Pig Corporation. They are subject to all state regulations and commitment to service. The arrogance of the present structure of management is the reason service is so bad. If your phone went out, no dial tone you want to report it. 1) you need another landline because you can't use your cell.2) Then navigate the menu from hell, to speak to no one human being.....did they even test your line? Or god fobid you got DSL trouble because your going to india....3) Customer is asked for a CBR number for tech.to call? NO for them to tell you your fixed? NO for them to push your job out 3 to 5 days because you are now NOT OUT OF SERVICE!!!! You could of got it fixed in 24 hrs by state regulation but no you said " call my cell..." Smart management huh? you wait all weekend because the small weekend crew has no inside support or is oveburden with late jobs. They will not bring techs in on OT. So a Utility is exempt from regulations why?You seem to feel that att sells just Iphones and how dare we tell those nice companies what to do !!!! Your assumtion is just that.

Jan 28 09:12 AM