Rhode Island has the second highest unemployment rate in the nation, and somehow the feeling of economic stagnation has seeped into the place. I'm not so sure what to make of it, and in fact, I don't think it's "bad" exactly. It's a very real feeling I gather on the bus, at work, and around the neighborhood that I expect the natives associate with daily life.
In DC this weekend, by contrast, everything was hustling and bustling. In MoCo (Montgomery County), Ballston, and Northwest... construction all over the place. Packed restaurants. Shiny cars. Nice landscaping. People wearing snazzy clothes. Flat roads. No litter. Dogs carried around in leather bags.
In Providence, it is not like that. It's beginning to make more sense. I'm continuing to read articles like this:
URI Index: Local economy remains stuck in recession
1:26PM Tue, Oct 14, 2008
By Jack Perry
Business staff, Providence Journal
Rhode Island's economy continued to deteriorate in August and indicators suggested the state's recession will continue well into the near future, according to the Current Conditions Index created by University of Rhode Island economics Prof. Leonard Lardaro to measure the present economic situation.
"Stating that weakness across the board will continue may well be an understatement, since both the national and global economies weakened significantly in September and have deteriorated further in October," Lardaro said.
The index retreated to a value of zero in August, after being set at 8 in July. The index also was zero in June.
A value of 50 is neutral. Anything above 50 signifies expansion while anything below that signifies retraction.
The Current Conditions Index measures the behavior of 12 economic indicators each month and compares them with what they were during the same month a year ago. The changes indicate whether Rhode Island's economy is growing, contracting or stagnant.
In August, all the indicators were negative. For example, government employment fell by 2.8 percent compared to last August. Single unit permits fell by 43.3 percent. Retail sales fell by 1.4 percent.
Lardaro said if any "good news" could be gleaned from the index, it was that manufacturing wages fell by only 0.2 percent, although it still remains below $14 per hour.
"This year continues to be a record setting one for Rhode Island's economy," Lardaro said. "I have no doubt that 2008 will ultimately come to be labeled "Rhode Island's year from hell," as we continue to set new records for all-time worst performances."
Lardaro said that prior to 2008, the index had only registered a value of 8 a few times, and never for more than a single month. This year, 8 has become the norm, he said.
Also, the index has registered zero twice this year. He said that looking back to 1980, the index had never reported a zero indicator until this year.
The decay in the city is remarkable. Here's a picture of a street light...
...and a better-than-typical specimen of near-omnipresent graffiti.
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