State's Right -To Mess it Up
In other news, Dr. Art Laffer presents research on "What Makes a State Competitive" for the Texas Public Policy Foundation.
With people, products, and capital free to move from state to state, state governments are ultimately competitors. Pro-growth and anti-growth state economic policies influence decisions on whether, where, and how much to work, save, and invest. These policies influence the ability of a state to retain and attract residents and businesses. The evidence suggests that pro-growth policies result in higher after-tax returns, increased economic activity, and an eventual improvement in overall state fiscal health; anti-growth policies result in the opposite effects.
Virginia earns a ranking of 6th (following Utah, Arizona, South Dakota, Wyoming and Tennessee), which is respectable, and places us ahead of most other states in our region, however it does leave us room for improvement. Though the report is focused on Texas, it is insightful into what factors make one state more economically competitve than another.