Common Sense Radio: Gina Galfetti on Vermont’s Shrinking Workforce, Affordability and the Cost of Doing Business
Friday, September 4, 2026, on Common Sense Radio, with Bill Sayre, weekdays, 11 o’clock till Noon.
Gina Galfetti, who represents Barre Town and Williamstown in the Vermont House of Representatives, joins Bill to discuss the loss of working age population, causes, consequences, and remedies. How can public policy best help make Vermont a place where families want to live, and can afford to do so. And a place where businesses want to grow, invest, and hire.
Potential Questions and Issues
What motivated you to run for a seat in the State Legislature? What are your connections to the District you represent? Why is it important to have entrepreneurs, or those with entrepreneurial experience in the Legislature?
What values, virtues, and ideals, enshrined in the Vermont Constitution, tend to promote a business climate in which in which the economy prospers, and the people enjoy the blessings of liberty.
Article 18 of our Vermont Constitution says —
That frequent recurrence to fundamental principles, and a firm adherence to justice, moderation, temperance, industry, and frugality, are absolutely necessary to preserve the blessings of liberty, and keep government free; the people ought, therefore to pay particular attention to these points, in the choice of officers and representatives, and have a right, in a legal way, to exact a due and constant regard to them, from their legislators and magistrates, in making and executing such laws as are necessary for the good government of the State.
How well have we adhered to these principles — particularly, moderation, temperance, and frugality? Why is it important for government to live within its means? So that workers can keep more of the money that they earn? If government budgets grow faster than family income, then family budgets must be curtailed. How does Vermont’s tax burden compare with that in other States?
Vermont’s population has declined in the last two years on record. Especially among young, middle class families. And our labor force is down by 10,000 from a year ago. What are the factors that have led to population and workforce declines? Also, second oldest population, lowest birth rate, and lowest fertility rate.
What are the consequences — for school enrollment, hospitals, for example. And for other social services, and for environmental protection services. Social services often involving income support plans.
Even if a Vermont business wants to grow in Vermont, how does the high cost of living affect the availability of workforce, and thereby, the ability of Vermont businesses to grow? Where do they grow instead? South and North Carolina, Tennessee, Texas, Arizona, and Florida. Does this tend to create a vicious downward cycle, in which the high cost of living drives, via the loss of labor force, drives business growth away from Vermont, which reduces the growth in tax base, which makes the cost of living even higher for those who remain in Vermont. How do we break this cycle, and convert it into a virtuous cycle? One in which, as the economy grows, tax revenue can increase without raising tax rates.
Does 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. rt
In particular, energy costs, particularly proposed Carbon taxes. What should we know about energy and climate policy that, in effect, creates new taxes, direct and indirect, on Carbon. Global Warming Solutions Act, Clean Heat Standard, and 30 by 30 program.
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 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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