Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index

Authors Arthur Laffer, Stephen Moore and Jonathan Williams provide an in-depth analysis of policies, some of which foster economic growth and prosperity in states like Utah, Arizona and Texas, others of which cause economic malaise in states like California, New York and Michigan. The 2009 ALEC-Laffer State Economic Competitiveness Index offers two rankings. The first, the Economic Performance Rank, is a historical measure based on a state s performance on three important variables: Personal Income Per Capita, Absolute Domestic Migration, and Non-farm Payroll Employment all of which are highly influenced by state policy. This ranking details states individual performances over the past 10 years based on this economic data. The second measure, the Economic Outlook Rank, is a forecast based on a state s current standing in 15 state-policy variables. Each of these factors is influenced directly by state lawmakers through the legislative process. Generally speaking, states that spend less especially on income-transfer programs and states that tax less particularly on productive activities such as working or investing experience higher growth rates than states which tax and spend more.