More on Minnesota’s Declining Economy

Thanks to wasteful federal grants to the states, Minnesota has a huge surplus, which it is in the process of spending and then some.  Shortly, we will have a big deficit.  The underlying reason is that businesses and taxpayers are leaving the state.  No one thinks we have a good business climate.  The education system sucks and turns out ideologues, not productive workers.  Taxes of every kind are extremely high and going higher.  New mandates on companies make it impossible to stay in business.  Electricity costs are soaring.  So as you might expect, we have little to no economic growth and it will definitely get worse.

This analysis from the federal Bureau of Economic Analysis looks at state growth.  From the 3rd quarter to the 4th quarter, Minnesota had one of the lowest growth rates in the country, at  a real rate of 1.3%, half the national rate.  The quarterly numbers can be subject to big swings in a particular state due to variation in impacts of macro effects on different industries which dominate in a particular state or variation in spending.  For all of 2022, the national GDP growth was a real (inflation adjusted) 2.1%, while in Minnesota it was 1.2%, 35th out of 50 states.

In the fourth quarter, personal income nationally grew by 7.3%, and by 5.8% in Minnesota, in the lowest quadrant of states.  The Minnesota numbers would be far worse if not for big gains for health care workers, and of course, government employees.  The rankings for all of 2022 are similar.  Not the picture the governor tries to paint, but then everyone knows he is a liar, all he does is lie, and then lie some more.  (BEA Analysis)