Understanding Rich States, Poor States: Jonathan Williams on The Hugh Hewitt Show

ARLINGTON, Va. – Tax Day brought more than just filing deadlines this year—it also marked the release of the 18th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index. After appearing in Salt Lake City alongside Utah Governor Spencer Cox and legislative leaders, including Senate President Stuart Adams, to announce this year’s results, ALEC President and Chief Economist Jonathan Williams spoke with Hugh Hewitt on his nationally syndicated radio show to discuss the latest rankings and the economic lessons states can learn from each other.

“They’re always looking around the corner, asking how to stay number one for the next decade,” Williams said of Utah’s 18-year run as the top state in economic outlook. That’s why “Utah has been a pacesetter for a very long time.” He credited Utah’s consistency to real policy reforms, such as pension reform, the adoption of Truth in Taxation for property taxes, becoming a flat tax state, and a continual focus on staying ahead.

Hewitt, who traditionally runs through the top and bottom states during his annual Rich States, Poor States review, broke down this year’s results with a highlight of top states including Utah, Tennessee, Indiana, North Carolina, and North Dakota as well as bottom states Connecticut, Illinois, California, New Jersey, Vermont, and New York.

There’s a common denominator for each category.

“What we consistently see are bottom states that have big government policies across the board, high taxes across the board, and then they pay special favors and pick winners and losers based on who has the best lobbyists in the state capital,” said Williams. “Meanwhile, top states have a very free-market outlook with low taxes across the board while incentivizing entrepreneurship and small businesses. “

It’s about “getting government out of the way of businesses and individuals, versus having government be empowered to make all the decisions,” he explained.

He also highlighted that the Rich States, Poor States report isn’t just a one-time snapshot. Visitors to RichStatesPoorStates.org can see an 18-year time series tracking each state’s economic outlook and performance.

“You can look back and see where your state ranked 10 or 15 years ago versus where it is today,” Williams noted.

In a lighthearted exchange, Ohio native Hewitt accused Michigan native Williams of putting his “thumb on the scale” as explanation for why the Great Lakes State outranked the Buckeyes.

“You’ve got football going for you right now, Hugh,” Williams chuckled. “But the economics are still okay in Michigan—thanks in large part to leaders like Speaker Matt Hall holding the line against Governor Whitmer’s policies.”

The conversation also touched on education freedom, an increasingly important complement to economic freedom that included praise for the spread of universal school choice across 15 states, including Utah.

“As Milton Friedman said, the combination of education freedom and economic freedom is a beautiful thing,” Williams emphasized, noting that Utah’s top ranking reflects its holistic approach to pro-growth policy reforms.

For policymakers and citizens alike, Williams made it clear: the path to prosperity is no secret. States that limit government, cut taxes, and empower individuals consistently come out ahead—and Rich States, Poor States offers the roadmap.