New Mexico’s Economic Challenge & Controlling the Federal Debt: Jonathan Williams on Tipping Point New Mexico
Rich States, Poor States can serve as a guide for New Mexico to improve its economic outlook.
ALEC President & Chief Economist Jonathan Williams spoke with Paul Gessing of the Rio Grande Foundation on the Tipping Point New Mexico podcast about New Mexico’s economic competitiveness, its ranking in Rich States, Poor States, and the federal government’s fiscal outlook.
The conversation began with a general overview of ALEC, its principles, and how it offers states tools to craft policy solutions for their needs.
“We’re the nation’s largest nonpartisan individual membership organization of state legislators devoted to really three main principles: free markets, limited government, and this idea of federalism,” Williams highlighted. “That’s something that should be on all of our minds as we celebrate America at 250 and what the Founders did to ensure that we had this incredible competitive federalism opportunity for states to compete with each other.”
Williams continued by highlighting policy resources such as Rich States, Poor States, which provides states with analysis and recommendations on how they could improve their economic outlooks.
“What we’ve seen in Rich States, Poor States for almost 20 years is just this incredible enhancement of this idea that states know they must compete, whether they like it or not,” he emphasized.
The conversation then turned to New Mexico and how it can improve after ranking 35th in economic outlook and 29th in economic performance. Williams pointed out how the publication serves as a guide for New Mexico in understanding how personal income tax elimination, property-tax transparency, and spending limits could help New Mexico become more competitive.
Williams also noted how implementing a Taxpayer Bill of Rights (TABOR) similar to Colorado’s could also be a boost for New Mexico to become an economic powerhouse in the Southwest region.
“TABOR is the one thing that’s kept Colorado from becoming California East,” he explained. “Colorado has dealt with this decline in competitiveness, with TABOR trying to keep the worst of the excesses at bay. The other thing I think is important to mention relates to the Southwest region and where New Mexico stacks up, is you have some of the most competitive states in America who continue to be doubling down on competitiveness in your region as well.”
The discussion later turned to the federal landscape, covering the growth of the national debt, federal spending incentives, entitlement programs, and the loss of federalism. Williams emphasized state fiscal discipline, reduced dependence on federal funds, and possible federal balanced-budget rules.
“At the end of the day, the thing that worries me the most is the federal government coercion over the states and this loss of federalism that we’ve seen over the last 100 years, really since the Progressive Era,” Williams stated. “States need to lead on this issue, both balancing their own budget, keeping spending in check, and then saying in this era right now we’re willing to chip in and take more autonomy once again and get off this addiction to the so-called free federal funds.”