Former judge and state Attorney General Jane Brady won an op-ed page victory this month when her piece on Delaware’s sluggish Gross Domestic Product appeared in the state’s major newspapers and niche publications, including this humble website. That’s a rarity these days.
By way of background, Brady moved over to a role at the Better Delaware public policy group after being ousted by a narrow margin as the chair of the state Republican Party. A Better Delaware is one of local Shoprite CEO Chris Kenny’s ventures, including online news websites under the “Live” brand in Wilmington and Milford, and a political action committee.
Brady noted that the state’s GDP – the value of a state’s goods and services – has barely budged since 2000. She went on to blame the state’s business policies without citing specifics.
Reasons for the GDP performance include the economic impact of the economic impact job slashing at DuPont Co. and AstraZeneca, the closing of both of the state’s auto plants, low wages by manufacturing standards in the poultry processing industry, and a New Castle County development code and associated state hurdles that have been difficult to navigate when it comes to business expansion and redevelopment. Some progress has been made in making the UDC more workable.
It has taken a decade or more to address some of the issues that include mundane matters such as entrances to new industrial developments.
Still, none of this fully explains why heavily regulated and taxed Maryland and New Jersey managed to post stronger economic performances.
As Brady pointed out, once inflation is added to the mix, growth has been in negative territory. In our region, only West Virginia, saddled with declining coal industry since World War II, has seen slower growth.
One troubling feature is the GDP’s ups and downs, as shown in the accompanying graph. Delaware’s GDP peaked in 2015 and only approached that figure in 2022. By contrast, neighboring states have seen steady upward movement in the GDP, with a few dips during recessions.
GDP is only one measurement of the economy and Delaware is 10th in another key stat – the average GDP per resident. That may mean that one of the nation’s most affluent states is living off its once formidable ability to generate wealth.
It would be encouraging to, at some point, see the folks in Dover focus on the economy as well as social and environmental justice issues. – Doug Rainey, chief content officer.
