Finding Competitive Advantage for New England Matthew Nemerson January 9, 2009

Regional cooperation and New Taxes

Regional cooperation and New Taxes Delighted to give the last talk before lunch on the most unpopular topics of the day…

A New Strategy for Connecticut in step with national politics (2004)…

I will make the case for… A $3.00 floor for gasoline and BTU equivalent for HHF, converting to a percentage tax as global costs increase Raise revenue to create an authority able to bond billions a year Turn various state functions over to a regional – New England wide – authority with representation from each state

A $3.00 floor for gasoline and BTU equivalent for HHF, converting to a percentage tax as global costs increase

Raise revenue to create an authority able to bond billions a year

Turn various state functions over to a regional – New England wide – authority with representation from each state

Background: global context Our future growth and wealth will be influenced by climate change , new locations that can compete and a rise in competition for all resources due to increased needs and wants by new people

Our future growth and wealth will be influenced by climate change , new locations that can compete and a rise in competition for all resources due to increased needs and wants by new people

How to make New England competitive in the new world

How to make New England competitive in the new world

Growth Above 75 percent

How is New England special NO Low costs Friendly to business Lots of young people Available land and housing Growing population Job growth nearby Easily livable cities Spirit of cooperation

NO

Low costs

Friendly to business

Lots of young people

Available land and housing

Growing population

Job growth nearby

Easily livable cities

Spirit of cooperation

How is New England special NO Low costs Friendly to business Lots of young people Available land and housing Growing population Job growth nearby Easily livable cities Spirit of cooperation YES Skilled older expensive workers R&D in needed areas Potential political clout – 12 Senators Short distances between populations Personal and corporate wealth Potential for great cities

NO

Low costs

Friendly to business

Lots of young people

Available land and housing

Growing population

Job growth nearby

Easily livable cities

Spirit of cooperation

YES

Skilled older expensive workers

R&D in needed areas

Potential political clout – 12 Senators

Short distances between populations

Personal and corporate wealth

Potential for great cities

How do get their attention?

Have the resources the world needs in 10 years High value Jobs business, financial and personal services Robust, low carbon transportation & energy production Trains, BRT, efficient cars, bikes, walking Financial and social capital Financing capacity and political will

High value Jobs

business, financial and personal services

Robust, low carbon transportation & energy production

Trains, BRT, efficient cars, bikes, walking

Financial and social capital

Financing capacity and political will

Modest plan to get NE on the list Band together for visibility, strategic respect The benefits of interconnections Create a revenue source Ability to finance infrastructure and reduce impacts of global changes

Band together for visibility, strategic respect

The benefits of interconnections

Create a revenue source

Ability to finance infrastructure and reduce impacts of global changes

Benefits of higher fuel costs Costs are going back up soon Other states and regions will probably follow Battle tests people and businesses for the future Those who cannot afford it would not be able to soon even without taxes Revenues allow for dealing with true hardship

Costs are going back up soon

Other states and regions will probably follow

Battle tests people and businesses for the future

Those who cannot afford it would not be able to soon even without taxes

Revenues allow for dealing with true hardship

Benefits of Regional Authority Access to global financial markets Europe, China, sovereign wealth funds respect organized intergovernmental efforts Rebuild clout of Northeast Small physical size, large number of US Senators, interlocking cross border labor markets Escapes some politics Efficiencies of a Texas on matters that are not subject to home rule issues

Access to global financial markets

Europe, China, sovereign wealth funds respect organized intergovernmental efforts

Rebuild clout of Northeast

Small physical size, large number of US Senators, interlocking cross border labor markets

Escapes some politics

Efficiencies of a Texas on matters that are not subject to home rule issues

A connected New England

Meaning exactly what? We can raise billions new dollars for game changing projects

We can raise billions new dollars for game changing projects

Final thoughts We are in new structural reorganization Regions without cash and highly skilled workers will lose Energy costs will go Global pressure for lower carbon footprint are coming NE’s size, density and ancient built environment must be exploited in light of above

We are in new structural reorganization

Regions without cash and highly skilled workers will lose

Energy costs will go

Global pressure for lower carbon footprint are coming

NE’s size, density and ancient built environment must be exploited in light of above

Thanks for not storming the podium and keeping tossing of vegetables to a minimum