Why is it that some states prosper today, while many others continue to struggle? Incorporating data from the 2010 census and many other respected sources, the latest edition of the American Legislative Exchange Council’s “Rich States, Poor States” publication explains why some states have enjoyed population, income and job growth over the past decade, while others suffered from economic malaise.
Through statistical and anecdotal evidence, “Rich States, Poor States” makes a compelling case that pro-growth fiscal policy is what really makes the difference.
No state has ever taxed, borrowed or spent its way to prosperity. States that allow the government to heavily interfere with economic transactions through increased tax rates, burdensome regulations and bloated spending have lost economic vitality and have seen residents migrate to states with lower taxes and more competitive business climates.
More than just an engaging economic study, the award-winning “Rich States, Poor States” offers policymakers a valuable road map to revitalizing their state economy through fiscal reform, based on free-market, limited government principles. This book compiles numerous case studies on the success of pro-growth economic and tax policies. The authors offer the states solutions on how to tackle budget deficits without raising taxes, what to do about underfunded state pension systems and how to create new businesses and private-sector jobs.
Furthermore, the fourth edition of “Rich States, Poor States” contains the much-anticipated 2011 ALEC-Laffer State Economic Competitiveness Index. It analyzes the real effects of current policies within each state and ranks the states according to their economic growth.
The publication outlines two sets of state rankings. An economic performance ranking is based on the past 10 years of economic data and takes into consideration income, population and job growth. An economic outlook ranking uses 15 policy variables, including various tax burdens, recently legislated tax changes, regulatory burdens and labor policy.
We encourage policymakers to examine how their state ranks in this year’s edition, as well as how their economic policies compare to the rest of the nation.
The beauty of the American experiment is that we have 50 “laboratories of democracy” that we can study to replicate the policies that have worked and avoid those that have failed. “Rich States, Poor States” is an indispensable 50-state resource for legislators tasked with guiding their states through these tumultuous economic times. Armed with the reliable facts and detailed analysis, this publication is a tool that gives lawmakers in each and every state realistic suggestions to improve their state’s economic outlook.
According to the rankings, New Mexico performed relatively well over the past decade with an economic performance ranking of 5. Contributing factors to this strong showing include the relative fiscal constraint of the Johnson years and the significant tax relief enacted during the Richardson years.
Unfortunately, New Mexico’s outlook is not so bright. It still faces significant tax and regulatory obstacles, which led us to give it a ranking of 39th in terms of economic outlook.
New Mexico – like any other state – holds its economic future in its own hands. Despite national economic woes, there are great opportunities for reform and improvement. We hope “Rich States, Poor States” can contribute to making the right policy decisions.
Learn more about the policies that will lead to growth and prosperity in this year’s edition of “Rich States, Poor States.” The full-text PDF is available for free on ALEC’s website: www.alec.org/rsps.
Jonathan Williams is a co-author of “Rich States, Poor States.”
