A new study conducted by the American Legislative Exchange Council (ALEC) revealed that the overall economic situation is much more favorable for citizens living in Republican-led states than in those led by Democrats.
This latest analysis, called Rich States, Poor States, quantified the economic outlook of each of the 50 states in the country, taking into account 15 variables including: taxes, minimum wage, policies towards unions and quality of the legal system, among others.
The authors of the report emphasized the idea that state legislators and state governors directly influence the economic development of the places they serve.
2023 16th Rich States Poor ... by Verónica Silveri
Almost all states with more economic prosperity are governed by Republicans
The report ranked Utah as having the best economic climate in the nation for the 14th consecutive year. The list was topped by a majority of GOP-governed states.
The cumulative Gross Domestic Product (GDP) growth in almost all of these states was overwhelming and was measured based on each state's economic performance over ten years (2011 - 2021). In other states where the GDP did not increase as much, factors such as low taxes earned them a place in the ranking:
- Utah is governed by Spencer Cox (R). Its GDP grew by 79.46%.
- North Carolina is governed by Roy Cooper (D). Its GDP grew by 53.37%.
- Arizona is governed by Katie Hobbs (D). Its GDP grew by 60.98%.
- Idaho is governed by Brad Little (R), Its GDP grew by 69.09%.
- Oklahoma is governed by Kevin Stitt (R). Its GDP grew by 29.54%.
- Wyoming is governed by Mark Gordon (R). Its GDP grew by 4.42%.
- Indiana is governed by Eric Holcomb (R) Its GDP grew by 41.74%.
- North Dakota is governed by Doug Burgum (R). Its GDP grew by 52.83%.
- Florida is governed by Ron DeSantis (R). Its GDP grew by 66.25%.
- Nevada is governed by Joe Lombardo (R). Its GDP grew by 52.33%.
Stephen Moore, a member of The Heritage Foundation, said that the report "provides more powerful evidence that the low tax, light regulation states are bleeding the high tax states dry."
Utah has been number one for 14 years due to its strong pro-business policy regime.
The states with the worst economic outlook
Maryland, Hawaii, Oregon, Maine, California, Illinois, New Jersey, Minnesota, Vermont and New York are the states with the worst economic outlook for 2023. These states' high taxes have a negative impact on their economic growth.
Last month, a study revealed that New York, last in the ranking, imposes the highest taxes on its residents. Chapman University economics professor James Doti told The Wall Street Journal:
If states like New York, California, and Illinois don't change their taxing and regulating ways, they will continue to shrink into economic oblivion.
