Policy Documents

Rich States, Poor States, 6th Edition

Arthur B. Laffer, Stephen Moore, and Jonathan Williams –
May 23, 2013

All across the nation, states are looking for ways to boost their economies and become more economically competitive. Each state confronts this task with a set of policy decisions unique to their own situation. However, not all state policies lead to economic prosperity and while some states achieve economic prosperity, others continue to struggle in their efforts to revive their economies.

Fortunately, the United States, with its “50 laboratories of democracy,” provides us with empirical evidence to track exactly which policies lead to economic prosperity and which fail to deliver. Rich States, Poor States is an annual economic competiveness study authored by Dr. Arthur Laffer, Stephen Moore of the Wall Street Journal, and Jonathan Williams, Director of the Tax and Fiscal Policy Task Force at the American Legislative Exchange Council.

Armed with years of economic data and empirical evidence from each state, the authors identify which policies can truly lead a state to economic prosperity. Rich States, Poor States not only identifies these policies but also makes sound research-based conclusions about which states are poised to achieve greater economic prosperity and those that are stuck on the path to a lackluster economy. The economic outlook ranking is a forward-looking measure of how each state can expect to perform economically based on 15 policy areas that have proven, over time, to mean greater economic success.

What Others Are Saying:

The evidence is clear: Economic prosperity is attainable for those states that exercise discretion and discipline in spending and taxation. Pro-growth tax and fiscal policies—like those championed by ALEC and throughout Rich States, Poor States—set a clear path to a renewed national economic recovery.”

 
-Governor Rick Perry, Texas

“I am pleased to see Rich States, Poor States in its 6th edition. This edition, like its predecessors, reviews fiscal policies that contribute to economic growth compared to policies that detract from such growth. It has become a go-to source for state policymakers”

-Governor Matthew Mead, Wyoming

“As Justice Brandeis noted, one of the happy aspects of the federal system is that a state may serve as a laboratory and try novel policy experiments. In 2012, the ‘Texas Experiment’ of light taxation and regulation produced more jobs than any state, and an economy growing at twice the national state average. Anyone interested in bringing similar success to their state should read this book.”

-U.S. Senator Ted Cruz, Texas

“I want to thank the authors of Rich States, Poor States and ALEC for providing policymakers and the public with this valuable resource. There is no question that states like Utah are reaping the benefits of sound fiscal policy. It is clear that limited regulation, low taxes, low debt, and balanced budgets create the best environment for business, investment, and jobs.”

-Senate President Wayne Niederhauser, Utah

“It is important for policymakers to have a publication that helps and encourages economic growth and competition between states to encourage economic prosperity. Publications like this one help educate legislators and governors with the tools to understand which policies work and which policies waste taxpayer dollars. The end goal for politicians should be the promotion of liberty, free markets, low taxation, and smaller government.”

-U.S. Senator Rand Paul, Kentucky

“Most state legislatures across the country are focused on reducing spending, lowering taxes, and growing their economies. Rich States, Poor States continues to generate in-depth policy information that is critical to making decisions that will move states in a more economically sustainable direction. This publication is an important tool for policymakers, and I find it essential in understanding what makes each state competitive in a global economy.”

-Speaker Thom Tillis, North Carolina


[Original Source: http://www.alec.org/publications/rich-states-poor-states/]