Home

Archive - Nov 30, 2008

Date

A Small State with a Big Problem

Posted on November 30, 2008 by Leah Hazard
Photo: <a href="http://www.flickr.com/photos/jeroen020/2558600110/">jeroen020 (flickr)</a>
Photo: jeroen020 (flickr)

News that the U.S. economy is doing worse than we thought is not news to the residents of Rhode Island.

In the country's smallest state, families like the Hallams have been feeling the effects of a shrinking GDP for some time now, the BBC finds. After working in the trucking and packing industries for years, the two brothers and their cousin are unemployed as they approach what would should be their retirement years.

Their personal story reflects the statistics surrounding the state. Rhode Island and Michigan are tied for the highest unemployment rate in the nation. The 1,044-square-mile state boasts the sixth-worst foreclosure rate in the country. Food pantries have reported a dramatic spike in use, with one pantry reporting serving 970 families this September, up from 261 families one year ago.

According to Leonard Lardaro, an economics professor at the University of Rhode Island who tracks Rhode Island's economic health, the situation looks pretty bleak.

“I hate to say it but a distinct improvement for Rhode Island right now would be to have our economy be dead in the water. Statistically this is the worst year. Clearly we’re going down faster than other states.”

So what's the problem with Rhode Island's economy? While some point a finger at high taxes, others cite the state's emphasis on manufacturing training. Small businesses make up 80 percent of Rhode Island's businesses, and these small businesses are struggling more than their larger counterparts to keep up with the current financial crisis, according to the New York Times. As big industries leave the state, recession-sensitive hospitality and service industries have replaced them.

Things might not get better soon. Gov. Donald L. Carcier's spokeswoman told the Times that Rhode Island historically has been one of the last states to come out of national recessions.

Bookmark/Search this post with:

Stories We're Watching
Subscribe

For India’s Newly Rich Farmers, Limos Won’t Do

International Herald Tribune - Fri, 03/19/2010 - 00:48
Land acquisition for expanding cities and industry has created pockets of instant wealth, creating a new economic caste in India: nouveau riche farmers.

Africa Could Join High-Speed Science Network

All Africa - Thu, 03/18/2010 - 12:45
African science ministers are hoping to extend a high-speed fiber optic network — currently linking Egypt to the northern hemisphere — to other countries in Africa.

Vision for Africa

Daily Nation - Thu, 03/18/2010 - 12:30
Africa’s economic future and the challenge of uniting people and nations drew eminent politicians and scholars into a historic public debate in Nairobi on Thursday.

'Quiet Corruption' Hurting Africa's Poor

San Francisco Chronicle - Mon, 03/15/2010 - 09:22
A World Bank report says teachers and other public servants who don't show up for work are fueling "quiet corruption" throughout Africa that is disproportionately hurting the continent's poor.

Industrial Output Up; Hopes For Factories Grow

NPR - Mon, 03/15/2010 - 08:45
Industrial production edged up 0.1 percent in February, beating expectations and marking the eighth straight monthly increase.
See all Breaking News >

Recent comments

  • "Esther, Wow! Thank you for commenting. One of the best things (among many) about applying these controlled random..."
    by Jill Scantlan
    on A 'Rising Star' in Economics
  • "Thanks for this article. One small correction though. What the post refers to as "my best known work" (the work on..."
    by Esther Duflo
    on A 'Rising Star' in Economics
  • "This is so sad, and at the same time so true. We talk so much about terrrorism on news that we forget about poverty and..."
  • "Microfinance is amazing. Allowing millions to send their children to university in order to "break the chain" and give..."
  • "UPDATE: Following an investigative report on BBC NewsNight, British Parliament has now passed a bill that will..."

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
— Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

America's premier charity evaluator gives Mercy Corps four stars in organizational efficiency. Click here to learn more.

High Value

Every dollar you donate to Mercy Corps helps us secure $11.16 in donated food and other critical supplies.

Mercy Corps — Dept. W — 45 SW Ankeny — Portland, OR 97204
 All original content Copyright © 2009 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.