[JayCT]

Originally Posted by HumpDay

That's ALOT of money that the state is giving to them. Wouldn't the state lose money by this? I understand it's a job but technically if the state is giving $4.5 million for 100 jobs then that's $45,000 PER person. With the amount of money that these people will pay in taxes as well as business taxes there's no revenue gain in this one. The state will lose money instead of gain. I think the state is trying to keep its name as a state with a lot of high paying jobs because the economy is providing more low paying jobs than high paying ones. Oh well...

The only benefit I see in this is having MORE people having MORE money in their pockets. If more people have money with good paying jobs then they'll be able to buy more services and goods which will provide the state in even more tax revenue such as sales tax. But then I realize how many of these workers will live in CT? Since its in Norwalk and Stamford I guarantee some may spend their money in neighboring NY if they choose to settle there.

I believe the state has a formula for determining the amount of money they will give to companies requesting it. I believe it is based on the amount of pay for the jobs created. I can't find a reference for it but remember reading it somewhere. Jay

[BicoastalAnn]

Originally Posted by HumpDay

That's ALOT of money that the state is giving to them. Wouldn't the state lose money by this? I understand it's a job but technically if the state is giving $4.5 million for 100 jobs then that's $45,000 PER person. With the amount of money that these people will pay in taxes as well as business taxes there's no revenue gain in this one. The state will lose money instead of gain. I think the state is trying to keep its name as a state with a lot of high paying jobs because the economy is providing more low paying jobs than high paying ones. Oh well...

The only benefit I see in this is having MORE people having MORE money in their pockets. If more people have money with good paying jobs then they'll be able to buy more services and goods which will provide the state in even more tax revenue such as sales tax. But then I realize how many of these workers will live in CT? Since its in Norwalk and Stamford I guarantee some may spend their money in neighboring NY if they choose to settle there.

There is a term to explain this, called the multiplier effect. There is a formula economists and urban planners use to determine the total impact of investment into a local area. Creating a job with $45k salary doesn't mean adding just $45k to the local economy; it means creating demand and consumption for other jobs/products. You can read more about it here: Multiplier effect - Everything2.com In this example, investing $100 in even just one person generates $500 for the local economy.

[beerisgood02]

The state of Connecticut is getting a second $1 million windfall after no one claimed a Powerball prize.

State wins again; no one claims $1M Powerball prize - Westport News

[howdydoody342]

Connecticut Ranks 43rd In Ranking Of Business Climate - Hartford Courant

CT drops 10 slots from last year to this year in it's business climate to #43.

[FunkOdyssey]

Originally Posted by howdydoody342

Connecticut Ranks 43rd In Ranking Of Business Climate - Hartford Courant

CT drops 10 slots from last year to this year in it's business climate to #43.

Hard to take this seriously considering they ranked us #25 for Quality of Life.

[Henry10]

Originally Posted by howdydoody342

Connecticut Ranks 43rd In Ranking Of Business Climate - Hartford Courant

CT drops 10 slots from last year to this year in it's business climate to #43.

Article mentions QOL as one of the 4 factors. Not sure why QOL is one the main 4. I could come up with 20 other factors that influence Business Climate before before QOL plays a role.

It's like judging fast cars based on the size of their trunk.

[cynic1]

Originally Posted by FunkOdyssey

Hard to take this seriously considering they ranked us #25 for Quality of Life.

Cost of living is a major component in deciphering an areas Quality of Life ....and taxes are a major influence on an areas Cost of Living.. simply put .. you cant enjoy a high quality of life if you don't have the disposable income to pay for it ... and Ct is one of the highest taxed states in the nation.

[BicoastalAnn]

Originally Posted by Henry10

Article mentions QOL as one of the 4 factors. Not sure why QOL is one the main 4. I could come up with 20 other factors that influence Business Climate before before QOL plays a role.

It's like judging fast cars based on the size of their trunk.

Good QOL will help you recruit and retain good talent.

[Henry10]

Business Climate is a tricky subject, and COL and QOL may not have necessarily a straight-up relationship with the Business Climate. For example, regardless how high COL is in Silicon Valley, business climate is great there if you're in IT. Or QOL is pretty bad in rat-infested downtown Manhattan, but business climate is great for financial firms.

Same thing -- COL is very low in Hillbill, KY, yet no businesses are rushing to set up shop there.

Same for QOL. CT is a great example -- QOL is relatively high while business climate sucks, so go figure.

[Henry10]

Originally Posted by BicoastalAnn

Good QOL will help you recruit and retain good talent.

Not really. How do you explain NYC if you're in finance, or Silicon Valley for IT. Or Detroit for designing cars? Or Houston if you work in oil?

High-paying jobs, great perks, vibrant business climate, so people can shop employers -- these attract talent.

Or another example -- during the oil boom, people flocked to North Dakota, living in run-down trailers, or packed like sardines in small apartments. It snowed there 11 months out of 12, QOL was terrible, yet people didn't care, as long as they were getting cash by the buckets.