The state is measuring at the bottom of national economic indicators. Focusing on key industries will create job opportunities, stability, and long-term prosperity.
The following editorial was published by the Portland Press-Herald on July 28, 2024. Read on Portland Press Herald.
Maine is a beautiful state with a lot to offer residents and visitors alike: abundant natural resources, some of the best national parks and scenery in the country, and a welcoming population that prioritizes hard work and community.
However, it faces a significant hurdle in sustaining a good way of life. It has one of the smallest and slowest growing economies in the country. On top of that Maine’s workforce is getting smaller as people move out of state and the remaining population ages.
The result? Many jobs are shifting from production-focused, foundational jobs to service jobs, making many of the jobs here among the lowest-paying in the nation. Economic experts believe the state will see less than 1% job growth over the next several years.
Why has Maine’s economy struggled while the economies of other states have flourished? Don’t try to point fingers at anyone. Maine lacks a forward-thinking, non-partisan, strategic plan to place itself at the forefront of one or more economic industries.
Why Maine needs a strategic vision now
For generations now, Maine officials and voters have been enacting legislation and public policies that address issues in isolation without an overall plan, accompanying research into long-range effects, or data about current trends. Over time these actions have piled atop each other with unexamined cumulative effects, until now.
New data show that Maine ranks in the bottom ten of major economic indicators more often than any other state, sometimes by a wide margin. We also know that dozens of quality Maine companies have been sold to out of state owners in recent years, just part of a decades long trend. The state attracts less investment and creates fewer jobs than most other states. Within those jobs, worker wages are low and must keep up with higher living expenses. To the experts, Maine simply lacks the hallmarks of a competitive location for business.
However, none of these are forces outside of people’s control and change has been made before (see sidebar). With a strategic plan that builds on current assets and strengths, Maine people can create a distinctive economy that will put them in healthy competition with other states and global partners.
A Strategic Plan for Maine’s Economy
1. Strengthen Maine’s Workforce with Foundational Jobs
Maine’s economic revival starts with a focus on foundational jobs—those in industries like forestry, fishing, construction, manufacturing, and transportation. These industries provide stable, well-paying careers that attract and retain young workers, ensuring long-term economic growth. By leveraging Maine’s natural resources and fostering emerging industries, workforces can be rebuilt, and families will be encouraged to put down roots, and revitalize local communities.
2. Enhance Maine’s Business Competitiveness
To become a more attractive destination for businesses and entrepreneurs, the state must reduce regulatory barriers, lower operational costs, and create a pro-growth economic environment. Small and medium-sized businesses, especially those that provide foundational jobs, should receive targeted support to expand, innovate and compete with neighboring states. A strong state economic brand, highlighting Maine’s strengths—its workforce, resources, and quality of life—will further attract investment.
3. Legislative and Regulatory Reform
Maine’s economic policies should work cohesively, rather than in isolation. A comprehensive, data-driven approach to lawmaking will ensure policies are evaluated for their long-term impact on job creation, investment, and economic stability. This includes assessing how new laws affect foundational industries, the tax base, housing affordability, and workforce retention.
4. Lower Costs for Businesses and Families
High taxes, energy costs and living expenses drive both businesses and residents away. Reducing these burdens through common-sense policies will make Maine a more affordable place to live, work, and invest. Cost reductions will allow businesses to expand and take risks while making home ownership and family life more attainable for Maine’s workforce.
5. Increase Revenue Through Growth, Not Higher Taxes
Rather than raising taxes, Maine should focus on expanding its economy by supporting industries that bring in revenue from outside the state, such as tourism, exports and online commerce. A thriving business sector will naturally increase tax revenues, funding essential public services and infrastructure without placing additional financial strain on residents.
How to build consensus in a divisive time
Certainly, one of the top challenges with creating, maintaining, and enacting a successful strategic plan lies in aligning different interests. People are often self-interested and may not initially support what is best for the state’s economy as a whole.
But there are ways to align people toward the greater good of the state. When foundational jobs take up a major part of the economy, Maine sees serious economic growth and other major advantages. A solid strategic plan should also provide a vision and incentives to stimulate economic growth across the board. It should enable faster alignment on key issues, like government policies or tax incentives, when job and business growth benefit more of the population.
By prioritizing foundational jobs, fostering a pro-business environment, reforming regulations, reducing costs, and growing revenue through economic expansion, Maine can build a sustainable and competitive economy to secure a brighter future for all of its residents.
