NM Missing Out on Post-Recession Gains

The following letter appeared in the Albuquerque Journal Business Outlook section on Monday, June 30.

Another month and another sorry set of job “growth” data for New Mexico right there on page 2. In fact, this is the most important information that appears in the Business Journal. For those of you who missed it, New Mexico is the only of nine Western states that lost jobs year-over year from April 2013 to April 2014.

Nevada led the region with 3.7 percent job growth while Texas grew by 3.2 percent. These states’ economies are quite different. Nevada boomed during the 2000s and was hammered by the recession while Texas’ economy held relatively firm during the recession and has absolutely boomed since then. Both, however, are right to work states (no forced-unionism) and lack personal income taxes at the state level.

In a recent analysis of New Mexico’s performance on a variety of “business friendly” or economic freedom rankings, New Mexico’s average ranking was 33rd while Texas’ average ranking was six and Nevada’s 18. Utah, Colorado, Arizona, and Oklahoma also scored consistently and substantially better than did New Mexico.

New Mexico has a unique and wonderful history, but it also has a history of anti-freedom economic policies, poverty, and dependency. Until that mentality changes in Santa Fe and the Legislature and PRC adopt policies that unleash rather than constrict markets, New Mexico’s economy will underperform, poverty will be high, and our most-educated young people will leave the state.

Paul J. Gessing
President
Rio Grande Foundation
PO Box 40336
Albuquerque, NM 87196
505-264-6090