Rich States, Poor States - In Which Do You Live?

Friday, June 4, 2010 11:10 AM

Our friends at the American Legislative Exchange Council have released the third edition of their Rich States, Poor States report which evaluates the fiscal economies and policies of states to illustrate the effects of diverse tax and spending regimes.

Unsurprisingly, the states with high taxes and unsustainable spending fared poorly in this evaluation. Even less shocking is the fact that nine of the states that had the lowest rankings last year appear in the bottom ten again this year. 

The report also studies four "progressive" states - California, New York, Michigan and New Jersey - which, by virtue of their tax-and-spend policies, have driven their once robust economies into the ground. It illustrates that states with pro-growth, low tax regimes like Utah (number 1 again in the rankings for the second year in a row) have high gross domestic product and increased economic growth. The study  highlights the fantastic opportunity states have to learn from one another, and hints the federal government can take to instill fiscal restraint. Check out where your state ranks!

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