Ad
Quality of life: Q&A on its role in economic development
Taos, with its outdoor recreation and remote work opportunities, is a rural area that draws in a good economy with its high quality of life.
Published
Modified
What drives economic growth in rural areas — jobs attracting people, or people attracting jobs? According to Amanda Weinstein of the Center on Rural Innovation, the answer may lie in an unexpected factor: quality of life.
While rural employment has declined nationwide over the past five decades, New Mexico — where over a third of the population resides in rural areas — has a unique opportunity to reverse the trend. During a recent presentation to the state’s Revenue Stabilization and Tax Policy Committee, Weinstein outlined how prioritizing quality of life can attract residents and businesses alike, redefining rural economic development.
Here are three key questions about rural growth raised by Weinstein’s insights — and the answers from Weinstein pointing to a brighter future for New Mexico:
Q: What matters most for rural economic growth — tax incentives or quality of life?
A: Quality of life is the key driver. Traditional economic incentives like tax breaks often harm rural areas, creating competition between counties rather than building sustainable growth. Instead, communities that focus on quality of life metrics — such as recreation, safety, good schools and broadband access — are more likely to attract both people and businesses.
Q: How can rural areas like those in New Mexico take advantage of their assets?
A: By leveraging their natural strengths. Towns like Taos, with outdoor recreation, arts and culture, and broadband connectivity, offer high quality of life. These assets not only draw remote workers but also create an environment where small businesses thrive, providing goods and services residents value.
Q: Why should small businesses be central to rural economic strategies?
A: Small businesses play a crucial role in enhancing quality of life, serving as providers of services like groceries, recreation and personal care. These businesses meet local needs, foster community connections and have a bigger economic impact than traditional measures often capture.
