Vermont’s Fine Whine
Friday, October 15th, 2010Peter Shumlin wants to “put Vermont back to work,” because “thousands of Vermonters are struggling to find good paying jobs,” and “Vermont is facing the highest unemployment rate in 30 years.”
So they are and so it is. But Vermont is not alone. In the other 49 states, millions are struggling to find jobs and the unemployment rate is higher than it’s been in 30 years.
In fact, the unemployment rate is lower in Vermont than it is nationally or in most other states. In August, according to the Bureau of Labor Statistics, only four states had lower unemployment rate’s than Vermont’s 6.0 percent, which was more than a third less than the national rate.
Brian Dubie agrees that job creation is vital, and he says jobs are scarce because “it’s harder to start a small business here, harder to earn a good living here, harder for a small business to hire and grow…than in almost any other state in America.”
Dubie has some evidence to support his assertion, a 2009 survey by Forbes Magazine finding that Vermont had one of the least “business-friendly environments” in the country. As evidence goes, though, this survey was decidedly unimpressive, and there are no actual data supporting the claim that small businesses are less likely to succeed in Vermont than elsewhere. Until the Recession began, business start-ups outnumbered business failures in the state, and the success rate was comparable to the rate in other states.
Different though their outlooks may be, Dubie and Shumlin are both acting in accordance with what seems to be Vermont’s real – if unofficial – motto: “Woe is Us.”
Speaking of no data, there are none to prove that Vermonters tend to complain any more than Tennesseans, Kansans, or Oregonians. In recent years, whining has emerged as the national pastime as various regions, generations, and subcultures claim to be more put-upon than everyone else.
To be fair, there is plenty to…well, whining never did any good, but there is plenty to complain about and rail against these days. In many ways, the country is in bad shape. The current Recession is the worst since the Great Depression (unemployment went slightly higher in 1982, but it was a far more manageable downturn). In real money terms, many people earn no more than they did a decade or so ago even as the cost of necessities such as health care and education keep rising. Life in America is not easy these days.
But all these are national (and some cases global) troubles. There is nothing particularly Vermont-ish about them. In fact, for the most part, Vermont is getting through these troubled times better than most states. Depending on who is doing the counting and when, the home foreclosure rate in Vermont is either the lowest or the second lowest in the country. As mentioned, the jobless rate, while higher than before the Recession, is relatively low, as is the poverty rate, and even the much-discussed pending state government budget deficit pales in comparison with many other states.
One reason to suspect that Vermont is whinier than most other states is that Vermonters were kvetching well before the Recession. To some extent, this is one consequence of being a generally liberal state. Complaining – sometimes with good cause, sometimes not – is built into a liberal’s DNA.
But if anything, it has been the state’s conservatives who have voiced the loudest gripes. Led by Gov. Jim Douglas, Republicans and their allies have kept up a steady chorus caterwauling that Vermont’s tax structure and environmental regulations are stifling economic growth.
It’s not impossible that there is some basis to this critique. But it faces one problem at the outset: there really isn’t much evidence that Vermont’s economic growth has been stifled at all.
For the last half century, this state has gotten steadily bigger and richer. In 1960, the Census counted 389,881 Vermonters. That rose to about 445,000 in 1970, some 511,000 ten years later, almost 563,000 in 1990, almost 609,000 ten years ago, and an estimated 638,000 this year. Experts project the population to reach 678,000 by 2025.
As it has grown larger, Vermont has grown richer. One of the poorest states in the middle of the last century, it now has the 21st highest median household income. According to official federal figures from 2007 to 2008 (the latest figures available) Vermont’s Gross Domestic Product grew by 1.7, more than twice the nationwide rate of 0.7 percent.
Vermont does have economic problems, but the evidence suggests that these problems stem less from what Vermonters do (government policies) than with where they do it (on farms and in small towns) and who they are (white, Anglo, educated, relatively affluent).
Vermont is one of the most rural states in the country, with only one official metropolitan area (Burlington and environs). In today’s economy, the advantages go to concentration and consolidation. With rare exceptions, economic opportunity is found in the big cities and metro areas. That’s home to the big economic drivers – the big universities, the health care and research centers, high finance, the arts. That explains why Chittenden County is the most affluent part of the state. It has at least some of all of the above. Considering that the rest of the state has very little, its prosperity is impressive. Somebody is doing something right.
One thing Vermonters are not doing much is having children, so one real concern is that the average age of the state’s residents will progressively rise. But there’s not much that can be done about that. Educated, white, Anglos aren’t having children anywhere in America, all of which is getting older. Nationwide, the share of the population over age 65 is projected to rise from 12.9 percent this year to 17.8 percent in 2025.
Vermont does have challenges. Like the rest of the country – but more than most states in the Northeast – income inequality is growing. The immigrants tend to be affluent retirees or educated folks who come to work at Fletcher-Allen, IBM, or the University of Vermont. The emigrants tend to be the less educated who can not find the jobs in factories, farms, or forests that supported their parents and grandparents.
That’s a real problem. But – again – hardly unique to Vermont. It is a problem that stems from great progress. Oversimplifying just a bit, the prosperous half of the world has solved the production-of-goods problem. People can produce more machinery, food, and fiber with a fraction of the workers needed a few decades ago. Among the functions that need fewer workers are forestry and dairy farming. Milk, wood pulp, and saw logs will continue to be produced here, but by many fewer people. To live decent lives, the rest will either have to get the kind of education needed in the new economy, or go somewhere else (though pretty soon, going somewhere else won’t do much good, either).
For the most part, then, Vermont’s problems are the country’s (and even the world’s). Sure, there are a few things this state could do better, or different. It’s even possible – though hardly proven – that cutting taxes and easing the regulatory process might be among them. Meanwhile, it could be a good idea for both Democrats and Republicans to see if they can avoid grating Vermont the distinction of being the whiniest state in the union.






