Podcast Summary
Rhode Island's Resilient Comeback: Governor Gina Raimondo's leadership and proactive approach to economic development are transforming Rhode Island's economy, attracting businesses and lowering unemployment rates.
Rhode Island, despite its past struggles with high unemployment rates, opioid abuse, and underfunded pensions, is making a comeback. Governor Gina Raimondo, who holds degrees from Harvard, Oxford, and Yale, and has a background in venture capital and public office, is leading the charge to change the state's narrative. Rhode Island's strategic location between New York and Boston makes it an attractive option for businesses looking to tap into the Northeast talent pool without the high costs. The state's unemployment rates have dropped below the national average, and companies like GE Digital and Johnson & Johnson have moved in. Governor Raimondo's approach to governance, which she describes as "math, not politics," has involved a shift away from the old "train and pray" model to a more proactive approach to economic development. This story of Rhode Island's recovery is one that is still unfolding, but it's a tale of resilience and determination that challenges preconceived notions about the state.
Leader uses crisis as opportunity for change: Governor Raimondo's personal experiences and a city's crisis motivated her to take bold pension reform actions, despite opposition, to secure the future for future generations.
Governor Gina Raimondo's personal experiences and the economic struggles faced by her family and the city of Central Falls in Rhode Island, coupled with the state's severe pension crisis, motivated her to take bold actions to reform the pension system despite strong opposition. She understood the urgency of the situation and the potential consequences if no action was taken. Her pension reform efforts, which included raising the retirement age and cutting cost of living adjustments, were not easy and faced significant resistance, but were necessary to secure the future of the pension system for generations to come. The crisis in Central Falls served as a stark reminder of the potential consequences of inaction and lent credibility to Raimondo's message. This is an example of a leader using a crisis as an opportunity to make difficult but necessary changes for the greater good.
Rhode Island's Pension Crisis Turnaround: Governor Raimondo's focus on investing in people through job training, high school-company partnerships, and a small business loan fund led to significant improvements in Rhode Island's pension funding and economic growth.
Governor Gina Raimondo's decision to address Rhode Island's pension crisis, despite initial resistance and a difficult election, paid off. The state is now seeing significant improvements in its pension funding and economic growth. While tax breaks and incentives for big companies have been part of the strategy, the bulk of the progress can be attributed to investing in people through job training programs, high school-company partnerships, and a small business loan fund. Despite criticism of corporate welfare, Raimondo believes it's essential to support existing businesses and ensure fairness. Rhode Island's economic comeback is a testament to her commitment to honesty, sincerity, and long-term solutions.
Government initiatives can help small businesses grow: Government programs like job training, free community college, and online permitting systems can remove financial barriers, increase enrollment, and lead to economic growth for small businesses and individuals.
While small businesses often view governments as a hindrance due to regulations and obligations, there are also beneficial programs and initiatives that can significantly help them grow. For instance, job training programs and free community college education. These initiatives can lead to increased enrollment, particularly for underrepresented groups, and can remove financial barriers that might otherwise prevent individuals from pursuing higher education. The Rhode Island government's elimination of regulations and move towards online permitting systems, along with initiatives like free community college and in-school SAT testing, demonstrate how governments can support businesses and individuals in meaningful ways. However, these programs often come with certain requirements, such as maintaining a minimum GPA and living in the state for a certain period after graduation. Overall, these efforts can lead to positive outcomes, such as increased enrollment and economic growth.
Rhode Island's Promise Program: Last-dollar Scholarships: Governor Raimondo's Promise Program provides last-dollar scholarships to Rhode Island students, increasing Pell grant applications and costing only $3.5 million annually.
Governor Gina Raimondo of Rhode Island has implemented a promise program to provide last-dollar scholarships to help students cover the gap between federal aid and college tuition. The program costs $3.5 million annually, which is a small fraction of the state's $9 billion budget. The scholarships are awarded to students who have applied for all available federal and other scholarships. The program has led to an increase in Pell grant applications, resulting in smaller but significant scholarships. Despite her business-friendly approach, Raimondo opposes federal tax reforms that she believes would not benefit Rhode Island. She advocates for higher taxes on the wealthy and for the federal government to invest more in infrastructure and education.
Bipartisan Breakdown at Federal Level, Productive State-Level Governors: Governors, despite party differences, prioritize state needs and collaborate effectively, offering a model for federal cooperation and productivity.
The breakdown of bipartisanship and effective information sharing between the federal and state levels of government has led to a less productive federal legislative process. Governors, however, continue to find common ground and work together despite party affiliations. This "fraternity of governors" can serve as a useful model for fostering cooperation and getting things done at the federal level. An example of this is the sharing of ideas and best practices between governors, such as Rhode Island's Gina Raimondo and Tennessee's Bill Haslam, on initiatives like community college programs and pension reform. Despite their political differences, governors often prioritize the needs of their states and citizens over party lines, leading to productive and collaborative relationships.
Encouraging Signs in Inter-Party Governor Relationships: Governors from different political parties build relationships, impacting daily life legislation often occurs at the state level, and governors control redistricting lines.
The relationship between governors from different states, particularly those from different political parties, is an encouraging sign for those who may view government as dysfunctional. The public and media should pay more attention to state-level politics and governors because significant legislation impacting daily life often happens at the state level. There's an imbalance of power in American politics, with only 15 Democratic governors in the country, and Republican donors and organizations have strategically invested in state-level politics. Governors also control redistricting lines, making their influence crucial for party domination. The evidence-based movement is gaining momentum in various realms, including politics, but its impact remains to be seen at the national and state levels.
Focus on measurable outcomes and continuous improvement: Effective workforce development requires a shift from 'train and pray' to engaging employers, adapting to industry needs, and prioritizing long-term benefits
Effective workforce development requires a focus on measurable outcomes and continuous improvement. The traditional "train and pray" approach is not sufficient, and it's essential to engage employers and adapt to industry needs. The success of apprenticeships and European-style job training models highlights the importance of retooling education and training programs to meet the demands of the modern labor market. Rhode Island's efforts to implement computer science education in every district and grade level reflect this approach, but it's crucial to consider the long-term benefits and the division of labor in the economy before implementing such initiatives on a large scale. Ultimately, the goal is to provide access and exposure to essential skills while allowing individuals to pursue their unique career paths.
The Importance of Basic Skills and Encouraging Diversity in IT: A solid foundation in math and digital skills is vital for all professionals, and efforts should be made to increase diversity in IT fields through training programs.
Having a strong foundation in basic math and digital skills is essential for individuals in today's economy, regardless of their chosen profession. Additionally, efforts should be made to encourage underrepresented groups, such as girls, people of color, and low-income individuals, to pursue careers in IT fields through computer training programs. For politicians, understanding and respecting businesses and small businesses is crucial for tapping into people's economic anxieties and getting elected. Ultimately, what most people desire is a decent job with economic security. In the world of CEOs, they are often perceived as wealthy and isolated figures, but the reality is complex, with varying experiences and challenges. Stay tuned for our upcoming series where we delve deeper into the lives and roles of CEOs.
Exploring the hidden side of seemingly small changes: Mindful actions can lead to significant outcomes, from job applications to traffic safety, consider the potential long-term implications.
From the impact of a single name on job applications to the effects of a red light camera on traffic safety, the hosts explore various examples of how seemingly small changes can lead to significant outcomes. It's a reminder that we should be mindful of the ripple effects of our actions and consider the potential long-term implications. Listen to Freakonomics Radio for more fascinating insights into the hidden side of everything. You can subscribe on Apple Podcasts or wherever you get your podcasts, and find transcripts and research links at Freakonomics.com. Stay connected with us on Twitter, Facebook, or via email at Radio@Freakonomics.com. Thank you for tuning in.
