AKA the “Where New-York’s Wealthiest Live” State
Connecticut is a lot like New Jersey in that it sucks on the power teet of New-York City. Only Connecticut’s addiction is worse. This is evident in the way Connecticut’s economy and geography are so related to New-York. To explain this we will pretend we’re walking through the state.
Starting with the westernmost portions of CT, you will see the state border actually stretches into New-York state almost as if it’s reaching out for another hit of that tasty New-York economy. This area lies on the coast and is referred to the Gold Coast because of all the money in this area. The town of New Canaan is the wealthiest in the state and one of the wealthiest in the country, with a per person income over $85,000. New Canaan lies on the Gold Coast.
Naturally we know much of the economy is driven by NYC commuters and the local businesses that support the family life, but the Gold Coast is also the home of many hedge funds. Since even a billion dollar hedge fund only has a few employees and most of the business is electronic, they have no need to locate directly on Wall Street. But because the successful hedge funds generate tons of income for the employees and those employees often originated from Wall Street, the proximity to New-York is not a coincidence.
As we head northeast to Hartford, we see more and more of the financial services industry’s humble roots. Insurance really took off in the state during the late 1800s, and the state has always been quick to pick up the newest forms of financial services since. Venture capital, which is a type of private investment company specializing in start-ups, also has roots here. Like hedge funds, the companies are mostly unheard of to many of our ears, so it accomplishes little to list them.
Sadly though, as you enter Hartford you cross the lines into one of the poorest communities in the country. Hartford sits in the middle of the state and in almost every direction is rural New England. There is some farming, mostly of dairy products and cattle. There is also some seafood being farmed. Much of it is lobster and clams, which are considered specialty items.
Heading east and in random pockets around the state is Connecticut’s manufacturing industry, which is surprisingly vast. Connecticut had their hand in specialty transportation equipment. This includes helicopters, airplanes, and nuclear submarines. Chemical and pharmaceutical production is also a contributor to the local economies.
Beyond that there isn’t much generating money in Connecticut. The state is rich in history and beach communities, so tourism plays a role in the economy.
what could have been CT
Connecticut remains one of the wealthiest states, and has the bragging rights for the highest per person income in the country. But because much of that income is attributed to New-York and Wall Street, the 2008 recession may have hurt this state more so than any other. If Connecticut’s economy doesn’t find a foothold somewhere, it may falter and simply become the “place where you have lunch on your way to Boston from New-York” state.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
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