New York, California Are Rock Bottom On Economic Freedom — Again
Once again, New York and California are on Santa's naughty list for their misbehavior in the realm of economic policies.
The Fraser Institute's latest annual Economic Freedom of North America (EFNA) report finds New York ranked 50th and California 49th, based on an index of 10 variables related to government spending, taxes, and labor market freedom. California has been in the bottom five for 14 of the past 15 years. New York has been there in all 35 years of the dataset, and in last place 22 of those years. In contrast, Texas has been in the top five for 11 years in a row, and Florida has been there for 34 of the last 35 years.
One reason this matters is that residents and businesses frequently vote with their feet in favor of economic freedom. Since the last recession ended (in 2009), population in the 10 most-free states has grown 2½ times faster than it has in the 10 least-free states. It has grown nearly 3½ times faster in just the past three years. Employment and income have also grown faster in the freer states.
Furthermore, over 230 scholarly articles by independent researchers have used the Economic Freedom data to examine economic freedom at the state level, while more than 400 articles have done the same at the national level (using its companion report that ranks countries). Most of that literature finds that economically free areas tend to experience more broadly positive
outcomes, including more economic prosperity. One reason is that high levels of taxes, spending, and regulation make it harder for entrepreneurs to succeed. When businesses can't expand and hire new workers, it hurts everyone.
States that have seen the fastest economic growth, like Texas and Florida, tend to have a common focus in their economic policies: low taxes (including low or no income taxes), a fiscally conservative approach to spending, and a common-sense approach to regulation that makes it easier for entrepreneurs to be successful. States that take the opposite approach, like New York and California, tend to see much less economic prosperity and many more moving trucks leaving the state for greener pastures.
No Hidden Agenda: Get News From A Pro-Free Market, Pro-Growth Perspective
New York and California ranking at the bottom of the Economic Freedom of North America report is not an outlier. Last year's Freedom in the 50 States report, which uses an entirely different methodology, came to the exact same conclusion on economic freedom: NY 50, CA 49. This year's State Business Tax Climate Index ranked New York 49 and California 48; only New Jersey was lower.
If politicians in New York and California want their state's residents to thrive, they should follow the models of states like Texas and Florida. The first step would be to lower their income tax rates. California's are the highest in the nation and New York's are not far behind. Income taxes are particularly harmful for economic growth because they punish productive activity. It's no coincidence that Texas and Florida, to which many businesses and residents are fleeing, have no income tax at all.
New York and California also need to rein in the growth of spending. Allowing the budget to grow only as fast as population plus inflation would make a big difference. Eliminating wasteful spending on things like corporate welfare programs that put small businesses at a disadvantage would be a good place to start. Reducing excessive regulations would also help entrepreneurs be more successful, allowing them to in turn expand their businesses and hire more workers, rather than leaving the state or shrinking payrolls and laying off workers.
Taking the steps necessary to rank higher on the various measures of economic policies, like the EFNA, is a win-win for New York and California (and all other states). Politicians can take the credit for improving the economy, and residents can reap the rewards of that greater prosperity.
Sounds like a great New Year's resolution for politicians everywhere: increase economic freedom. That'll surely get you off Santa's naughty list and onto his nice list! https://www.investors.com/politics/commentary/new-york-california-are-rock-bottom-on-economic-freedom-again/
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I reckon that if the one and only vague concept one used to judge where was and where was not a good place to live was something the autfhor calls, "Economic Freedom", then the thousands of rural backwaters way out in deserted flyover country would be Nirvana and people would be clammoring to move their businesses, homes and families there. People are not. No, folks tend to live where the living is good and where opportunites are abundant. There are damn good reasons why California and New York are the two most populous states in the USA...
"Economic Freedom" is the ability to rape our environment without being held accoutable. So, who needs clean air, water, ground etc etc?
The Fraser Institute is a group of Ayn Rand libertarians who think that taxes are theft. There is no such concept in the constitution as economic freedom because wealth isn't a right. If California is such a hellhole for business then why would be in the top 10 economies of the world if it were a country instead of a state?
You will get no arguments from me. "Economic Freedom" is just code for being able to despoil the land, air and water while treating People like disposable commodities. "Economic Freedom" is pretty much the opposite of "Quality of Life". There are damn good reasons California and New York are where lots of People choose to live and work. I have lived in Texas and I have lived in New York. One is beautiful and lush and the other is a concrete wasteland. In NYC People want to be out enjoying the environment. Everyone is Texas tries to stay indoors or in their cars since Houston and Dallas are hellish...
I have never seen you reply with more than a sentence or two of your opinions. You don't have facts to support what you beleive.
I have visited NY and Texas because I have family there. I love NY, especially the Hudson valley. I love the culture of NYC for a few days and then my loner personality takes hold and I have to get away from all 4 million of my closest friends.
Texas is a wasteland of heat, pollution and stupid that I couldn't wait to leave. I feel the same way about almost everything south of I-40.
OMG.....what part of TX did you visit?
TX is awesome.....the land, the culture, the people!
A sing along.....the stars at night are big and bright deep in the heart of TX. reminds me of the girl I love deep in the heart TX..........
Insofar as NYC goes.......my heart is NYC!
Lol. Yesterday you were bragging about how rich you are. Now you are bragging about how smart you are. Why am I not surprised? Thing is, Fearless, some people are NOT as rich or smart as you are, but they are every bit as valuable a human being as you are. They have friends and family who love them, and children who admire them. And if the best they can do is hold down a job in a field, restaurant, or on a loading dock, they should be paid a decent, living wage for it, period.
Fearless has a very good brain. And he's rich, he's very, very rich.