Business Climates mean nothing

In the March 3, 2015 Providence Journal there was an article “RI 42nd in business climate”. I looked at the most recent available data from the Bureau of Economic Analysis and RI was 33rd in rate of growth. Disparities like this are common, and more and more it is obvious that the business climate has little to do with actual economic performance.

Business climate rankings are an ideological test, not a ranking that has anything to do with real world performance. They are put together by people with a preference for the power of the rich rather than the welfare of the community. According to Kansas Inc no more than 5% of a state’s economic growth rate is determined by factors taken into account by business climate rankings. In other words if Rhode Island followed the prescriptions of the business climate rankers our growth rate might go from 2.2% to 2.3% while damaging our ecosystems and increasing inequality. It is time that Rhode Island, and especially Rhode Island politicians, stopped paying any attention to the business climate rankings.

Greg Gerritt

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