NY ranked last in nation for economic outlook
The poor projection comes during a pandemic and a rise in crime
New York was ranked the lowest in the country in terms of economic outlook by a new report that examines policies and whether they have helped or hurt their state’s competitiveness.
The American Legislative Exchange Council (ALEC), a conservative think tank, looked at each state for the organization’s 13th annual “Rich States, Poor States” report, which was released Wednesday.
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“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 that tax and spend more,” the report states.
The report looks at 15 different variables, including top marginal personal and corporate income tax rates, property tax burden, sales tax burden, estate or inheritance taxes and state minimum wage. New York was ranked dead last in several categories and no better than 30th in any of them.
This is the seventh year in a row that New York has been ranked last in ALEC’s economic outlook rankings, but the state’s economic performance ranking — which looks at a state’s gross domestic product, absolute domestic migration and nonfarm payroll employment from 2009-2018 — is much higher, with New York placing 21st.
Utah placed first in economic outlook and third in economic performance. Texas was first in performance and 15th in outlook.
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“The empirical evidence and analysis in this edition of Rich States, Poor States illustrate which policies encourage greater economic opportunity and which are obstacles to growth,” the organization said in the report’s introduction. The evidence is clear that competitive tax rates, thoughtful regulations, and responsible spending lead to more opportunities for all Americans. State economies grow and flourish when lawmakers trust people, not government, to create long-term prosperity.”
New York City in particular is seeing an exodus, according to the New York Post, which reported that people are moving out en masse amid the coronavirus pandemic and rising crime, in many cases going to other states.
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Adding residents’ inspiration to leave the city is the recent move to put hundreds of homeless people into luxury hotels in Manhattan’s Upper West Side, normally a choice neighborhood for families.
“There was no reason to leave before,” an Upper West Side mother told the Post. “Now, I’m done. I can leave tomorrow and never look back.”