Minnesota’s Sinking Economy

John Phelan at the Center for the American Experiment does outstanding work.  He has published several times on the change in Minnesota’s economy, which used to be one of the strongest and most resilient in the country, with agriculture, mining, large corporations, and health care all contributing to an above-average state GDP and quality of life.  That is true no more.  Over the period of whacked Dem governance of the state, starting with the Dayton administration and accelerating with Fat Timmy’s reign, the state has experienced below average GDP growth relative to the rest of the country.  At one point GDP per person in Minnesota was almost $5000 above the national average.  By 2024, it was below that average.  Minnesota has gone from 17th among the states in per person GDP to 37th.   (CAE Report)

John is going to do more work on the factors underlying Minnesota’s sharp descent in GDP among the states.  But here is a primary reason why.  Look at this chart.  Minnesota is one of the few states that has increased income taxes over the last 25 years.  And it isn’t just income taxes–the sales tax is up, property taxes are way up, car license fees, everything is taxed more.  So people and businesses have left the state for more welcoming locations, like Florida and Texas.  Unless and until there is a complete changeover in state government, the economy in Minnesota will just get worse and worse.   (ZH Chart)

This decline in GDP would be even worse if it weren’t for our excessive growth in government spending, which paradoxically is also a cause of the decline.  I have shown before that much of what economic growth there is in Minnesota comes from government–state and local.  The private sector isn’t contributing much.  And this decline is meaningful to Minnesotans.  It means fewer good jobs and ultimately will mean less funding available for maintaining infrastructure and good schools.