Vermont’s High Costs and the Future of Its Economy: Elizabeth Brown Joins Common Sense Radio
Friday, August 28, 2026, on Common Sense Radio, with Bill Sayre, weekdays, 11 o’clock till Noon.
Elizabeth Brown, Vermont State Director for the Fiscal Alliance Foundation, joins Bill to discuss work of the Foundation, in improving public awareness and appreciation of why responsible fiscal policy in Vermont is critical if we are to grow the economy, create opportunity, and foster prosperity for Vermont and her people.
Let’s discuss your recent report on the loss of value added processing in the Dairy Industry, particularly in Franklin County. Some have said that the free market economics is responsible for this loss of this manufacturing capacity in one of our iconic industries. In a very limited sense, this may be true. But in a larger sense, it is not. It is higher costs in Vermont, that are causing us to lose manufacturing. Indeed, it is free market economics that helps us identify and understand how it is, and why it is, that our costs are higher? This illustrates the genius of our Founder is designing a decentralized, federalist system of government, that fosters competition in the marketplace of policies and of ideas, and thereby, fosters innovation in policy, the same way that competition in the economy fosters innovation in the way producers provide the goods and services that customers want to need. Producers, including value-added manufacturers, and their capital, will migrate to where they are welcome. And to where there costs and business environment are more competitive and favorable. And the result, when allowed to function, is higher economic growth in the States with a more business friendly climate. In effect, the free market is the messenger, bearing an inconvenient, sometimes harsh, message.
So what is the message? Why is it important to know that prices are determined globally. And costs are determined locally. Business climate is a major element in costs. What are the elements of our business climate that cost to our manufacturers? Taxes, particularly property taxes and income taxes. Regulations, especially act 250 and related environmental regulations, but also workers’ comp. Insurance and unemployment insurance. Roads and bridges. The cost and availability of labor. An unintended consequence of Act 60 — reduced incentive to grow the local economy. And attitude toward economic growth?
What are the two approaches to affordability? Subsidize some by taking from others. Or, reducing cost, for all. If an economy doesn’t grow, can we only hold the line on taxes, by holding the line on spending? If we can grow the economy, it becomes possible for government to spend more, without raising taxes. What is the tax burden in Vermont, compared with that in other States.
What are the ways in which government policy creates a more costly business climate? Cost of Education, 70 percent over the national average on a per student basis. And yet student test scores mediocre, and way down from just a few years ago. Cost of health care and health insurance, the highest in the nation. Energy costs, particularly proposed Carbon taxes. Housing availability and cost. Labor availability and cost — including workforce declines. New payroll tax for childcare. How do proposed taxes on high income earners, wealth, and second homes affect the business climate?
What demographic changes should be of concern for us? Overall declines in population, especially among those of working age. Median age, second oldest. Lowest fertility rate. Lowest number of births since before the Civil War.
What are ways in which all these business climate issues can be addressed without creating new taxes or new regulations. The two world views.
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