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

by Arthur B. Laffer, Stephen Moore, Jonathan Williams

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.

Genres: Economics, Politics

110 pages, Unknown Binding

First published January 1, 2009

Reviews

[Andrew Male · Rating 1 out of 5]

The text presents a very simplified/narrow view of economic decisions by citizens of the United States, often times doing so with unsupported models or a disturbing disregard for context. There are certainly philosophical differences worth discussing in another forum, but for now suffice it to say that this ongoing study seems to be more an exercise in validating political platforms than it is a healthy economic research topic.

[Grace K Holman]

internship check

[Randy · Rating 4 out of 5]

Laffer, Moore, and Williams just released their latest edition of RS/PS 6/22/11.

The project began with a fascinating analysis of data from moving firms. The authors saw internal emigration (that is, people moving from one state to another state) as highly linked to state tax policy. It seems instinctive -- people move from highly tax states to low tax states -- but these guys were the first to document it.

Since then, they've broadened their analysis to include a more complete picture of the many taxes state legislators control, and to model a tax attractiveness ranking for each state.

Any state legislator should keep a copy of this book on his/her bookshelf, and consult it when redesigning tax structures and rates.

Profits follow low-taxes, jobs follow profits, people follow jobs, and votes follow people.

[Angie Boyter]

I actually read a 2012 edition that is not on the Goodreads list.

Having just finished The Darwin Economy, I anticipated this would be a contrarian view of economics, although not exactly on the same aspect thereof. I was not surprised by what I found: some very interesting stats, but, just as Frank did in The Darwin Economy, careful (or maybe careless or thoughtless) selection of the stats that fit his thesis and little to no consideration of alternate explanations or other stats that did not fit so closely.I don't know how many times I was moved to say, "Well, if THAT is so, how do you explain the data on page ___?
He certainly has some valid points, but you have to look at his assertions very critically.
(The PDF download is free from the ALEC website.)