Rhode Island has a lot to offer residents from its beautiful coastline to a thriving intellectual community. The economy of Rhode Island centers primarily on three powerful industries: tourism, manufacturing and health services.
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Roger Williams established the first permanent settlement in 1636. England granted Williams a charter in 1644 and four settlements united under one confederacy in 1647. Rhode Island was granted a second charter in 1663 that served as the law of the state for 180 years. The early 18th century saw the state flourish as the fertile land was developed into farms and slave-driven plantations. The sea proved to profitable as well with the "triangle trade" route. Rum was transported to Africa in exchange for slaves, who were then taken to the West Indies to be traded for molasses that was taken back to Rhode Island and distilled into rum. Unrest with British rule provoked the burning of two British ships. Liberty was burned in Newport Harbor in 1769 and Gaspee was burned in Narragansett Bay in 1772.
Rhode Island was the first colony to declare its independence from British rule on May 4, 1776, beating the other colonies by two months. It was also the last state to ratify the Constitution, holding out until the Bill of Rights was added.
Textile manufacturing spurred industrial growth in the late 1700s. This era also saw Rhode Island become the nation’s pre-eminent jewelry making center. Quakers and Jews were both welcomed by the state. These strong ties led to its economic stability into the 19th century. In 1843 a new state constitution was approved, which replaced the obsolete Rhode Island Charter of 1663.
Prosperity continued after the Civil War and the last thirty years of the 19th century saw its population double. The state’s shipyards and factories contributed to the war efforts of World War I and World War II. After the World War II, textile manufacturing moved to the South and Rhode Island’s economy suffered greatly. Now the state’s economy is more diversified, with electronics, chemicals and tourism at the top of the balance sheet.
The statewide sales tax is 7 percent and there is a 5 percent lodgings tax.
From its sparkling lakes to choppy Rhode Island Sound, water is the primary attraction. Resorts abound in the bluff coast’s islands. Newport is popular and Jamestown is quiet and quaint. Also popular are golfing, tennis, boating and horseback riding. The primary winter sports are ice skating, sledding, snowmobiling and cross-country skiing.
