Earlier this week, GE announced plans to move 950 jobs from Erie, Pa. to Texas. What is one of the key reasons Pennsylvania continues to lose jobs and population to states like Texas? Economic freedom.
The Mercatus Center’s latest edition of Freedom in the 50 States underlines the problem hindering the opportunities available to Pennsylvanians. The study ranks the Keystone State 31st overall on its freedom index. The reasoning:
The state’s ranking remains mediocre on fiscal policy. It has higher-than-average taxes but performs much better than most states on government spending and employment. However, it has high government debt and is not as fiscally decentralized as most states.
Not only are Pennsylvanians taxed too much, but we are neck deep in government debt. The analysis also scored our state below average in business regulations and tort abuse.
Study after study finds that economic freedom results in higher quality of life. States with more economic freedom see higher rates of GDP growth, lower unemployment, and lower levels of state and local debt. Economic freedom also leads to higher incomes, less poverty, better environments, and even longer lives.
This short video from Duquesne University professor and CF Scholar Antony Davies underscores the benefits of economic freedom.