Center for Analysis of Delaware's Economy & Government Spending


Center for Analysis of Delaware's Economy & Government Spending

 
The Center's mission is critically important to Delaware because state policies continue to be an unfortunate catalyst for the clear decline of Delaware’s economy for far too long. For instance…
 
  • Over the past 20 years, Delaware’s per capita income has gone from the highest in the nation to below the national average.
 
  • According to the Delaware Department of Labor, employment is projected to grow at only 0.5% over the next decade, thereby trailing most of the nation.
 
  • Since 2009, Delaware has had five recessions compared to one in the rest of the country.
 
  • Including the variable Gross Receipts Tax, small business owners in Delaware often pay the highest personal income tax rates in America. 
 
In partnership with other like-minded Delaware organizations, the primary goals of this Center are to develop bi-partisan strategies and alternative policy options that will bring transparencyregulatory reform, and improved effectiveness to the tens of billions of dollars spent by the State every year.
 

Productivity is typically measured as the amount of output (the market value) of the goods or services each worker in an industry produces over a year.   Based upon output per worker or productivity, one can identify which industries will pay high wages and maintain competitive prices. Ob...

Read More
PDF Doc

In its recent report on “Growth Centers” the Brooking Institute declares that “the future of America’s economy lies in its high-tech innovation sector.”   Brookings identifies a cohort of 13 innovation industries where R&D expenditures exceed $20,000 per ...

Read More
PDF Doc

The Pew Center Trust has recently updated its information website on the fiscal health of states. It confirms much of what is known about the State of Delaware’s finances.   On the positive side, as of 2018 Delaware state government could run 20.5 days on rainy day funds if tax reve...

Read More
PDF Doc

The Fraser Institute has just released its 2018 economic freedom rankings for the states in the U.S. and Delaware remains ranked a low 39th. Delaware ranked as high as 10th among the states in economic freedom in 2002 and fell precipitously in the rankings following the 2007-08 recession.   ...

Read More

In a recent opinion piece Ted Kaufman, relying upon data from the liberal Economic Policy Institute, argued that weak wages require policies that would restore unions and raise the minimum wage. I would favor the policies that encourage economic growth.   The Obama-Biden approach to macro...

Read More
PDF Doc

CRI believes that the first substantive step in approaching any public policy issue is gathering unbiased data. Data, while never perfect, moves away from rhetoric and anecdotes. Data tells us where we are so that we can measure future success or failure.   The Delaware Department of Publ...

Read More
PDF Doc

Executive Summary   Why do we care about a growing economy?  The basic answer is faster growing economies lead to higher incomes making everyone a little richer, especially reducing poverty rates and unemployment rates.  The Delaware economy actually fell a half percent a year...

Read More

The 2018 ranking of states by fiscal condition has been issued by the Mercatus Center. The analysis is based upon FY16 financial reports.   Delaware ranks 44th among the states for fiscal health.   Delaware has between 1.34 and 1.98 times the cash needed to cover short-term obl...

Read More

This article was originally published at delawareonline.com on June 4,2015 and in The News Journal the next day. As former chair of DEFAC (the Delaware Economic and Financial Advisory Council 1977-85), I read with interest and enthusiasm the May 2015 report of the DEFAC Advisory Council on Revenu...

Read More

General Electric may be looking for a new home for its corporate headquarters in response to a whopping $150 million Connecticut state tax increase.  The company already moved once as a tax refugee from New York City to its current Fairfield, Connecticut location.  Delaware could get on th...

Read More