PA Losing Ground in Economic Rankings

This month, the American Legislative Exchange Council released their third annual ALEC-Laffer State Economic Competitive Index. Unfortunately, in the last three years Pennsylvania’s economic rankings not only have been near the bottom – they are only getting worse.

Since 2008, the Commonwealth has fallen both in its Economic Performance and Economic Outlook ratings to 46th and 43rd respectively; putting it among the worst ten states in nation.

The Index also touts Pennsylvania as a biggest loser for population growth, with a 2.6% increase from 1998-2008, well below the 10.0% U.S growth average. The state lost 81,976 in net interstate migration during that same period.

The ALEC-Laffer index drives this point home-taxes don’t redistribute wealth, they redistribute people.

The report offer this advice to states who want to improve-learn from the mistakes of CA, MI, NY, and NJ; avoiding high taxes on the rich, sweetheart deals (e.g. film tax credits) to bride business to come instate, and avoid generous welfare programs to the unemployed.

ALEC-Laffer Pennsylvania Rankings (1=best;50=worst)

Economic Performance Economic Outlook Year
46 43 2010
46 42 2009
44 37