Keller: Who’s Responsible for Massachusetts’s Struggling Economy?

The opinions expressed below are Jon Keller’s, not those of WBZ, CBS News or Paramount Global.

Economists warn the broader effects of tariffs might hit us by June or July. Meanwhile, in Massachusetts, we’re already feeling the pinch. Let’s delve into who’s taking the blame.

Nationwide Economic Trends

Fortunately, on a national level, the inflation rate is decreasing. For the third consecutive month, consumer prices saw their smallest increase in over four years, rising only 2.3% in April. Encouraging news, indeed.

Massachusetts: Ahead of the Inflation Curve

However, Massachusetts appears to be bucking the trend. Governor Maura Healey acknowledges our struggles with costs, despite our many advantages. She’s taking steps to alleviate energy costs. Yet, the latest MassBenchmarks report reveals both inflation and unemployment are outpacing national figures here, amidst a slowing economy.

Tariffs: A Local Perspective

Northeastern Professor Alan Clayton-Matthews points out our slow economic growth. While Healey’s policies matter, they don’t primarily cause our current woes. Tariffs might be part of the reason, but not all, insists Massachusetts GOP Chair Amy Carnevale. She suggests Healey’s spending on housing and services for migrants burdens our living costs.

Political Blame Game

Carnevale attributes blame to Healey, but let’s be fair. Some mandates ascribed to Healey were enacted under a Republican governor, Charlie Baker. Furthermore, Carnevale criticises the one-party dominance locally, although this stance wobbles when defending one-party actions in Washington.

Federal Cuts and Tariffs

Many states might feel the brunt of federal cuts and tariffs. Massachusetts, however, stands particularly exposed due to its reliance on federal grants and foreign trade. We’re banking on climate tech industries to drive future growth, which these changes might jeopardise.

Future Considerations

Clayton-Matthews emphasises that federal administrations have a bigger sway on immediate growth than state policies. He suggests current state administration affects future more than present circumstances. Carnevale acknowledges national impacts are perhaps short-term but insists local effects are substantial.

In conclusion, the economic landscape in Massachusetts is complex. While we’re managing immediate challenges, watching how policies unfold at both state and federal levels will be crucial. For now, it’s a waiting game as we brace for potential impacts.

Author Bio

Jon Keller is WBZ-TV News’s political analyst. His "Keller @ Large" segments cover a diverse array of topics during WBZ News at 5 and 6 p.m.