Aetna's headquarters in Hartford, but not for long: The company is moving its home office to Manhattan.
Adapted from Robert Whitcomb's "Digital Diary,'' in GoLocal24.com:
Derek Thompson, writing in The Atlantic’s online service, has some interesting takes on Connecticut’s current fiscal problems. The state government has a huge deficit, some cities are effectively bankrupt, taxes are amongst the highest in the nation and some big companies have fled. And yet the state remains the richest on a per-capita basis in America, albeit largely because of New York City-connected rich folks living in Fairfield County. (Massachusetts is the second-richest; New Jersey the third.)
He notes some remarkably little reported reasons for the state’s ills: One is that Connecticut, like America in general, has lost much of its high-valued manufacturing, a sector for which Connecticut was once famed around the world. (I lived near Waterbury for four years in the early and mid-‘60s, from when I well remember the busy factories up and down the colorfully polluted Naugatuck River.)
Very highly paid people in finance, many of them commuting to Manhattan but many doing their thing in Stamford and Greenwich, have offset some of this loss. However, finance, which of course follows the ups and downs of Wall Street, is more cyclical than manufacturing. And the latter provided a wider range of well-paying jobs to many more people than does finance.
Another important change that Mr. Thompson cited is that the big cities close to Connecticut --- especially New York and Boston – have become much safer and more attractive. Rich people and Millennials have been moving back into them, having grown bored with suburbs, even those as attractively sylvan as some on Connecticut’s strip of the Long Island Sound shoreline.
Conservatives who seem obsessed with high taxes above all else should note that some of the big companies pulling their headquarters from Connecticut are not exactly moving to low-tax venues. Consider that Aetna is leaving Hartford for Manhattan and General Electric has left Fairfield for Boston. They want the dynamism of those cities and are happy to pay for it.
The Nutmeg State has poor, high-crime and often badly run cities. If the state is to improve its long-term prospects, I and Mr. Thompson would agree, it needs to fix its cities. Hartford, which used to be a vibrant and mostly middle-class city before bad municipal government, ill-considered“ urban renewal’’ and other factors drove it into the ditch, is expected to go into official bankruptcy soon. That should let it start cleaning up its act and make it a place that people, especially young adults who might otherwise go to New York, would want to live and work in. That could help turn around the whole state. After all, Hartford is the state capital.
