Utah Is a Perennial Leader in Economic Outlook: Jonathan Williams on Moore Money

Appearing on Moore Money with economist Stephen Moore, ALEC President and Chief Economist Jonathan Williams covering the latest economic outlook rankings from the 19th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index emphasizing the impact of pro-growth policies and the challenges faced by high-tax states.

Williams began by emphasizing ALEC’s mission and structure, contrasting it with other policy groups. “We like to practice what we paid for with the free market,” he said. “We also ask those who care about these ideas of free markets, limited government and federalism to contribute to ALEC and that’s how we continue to grow as an organization.”

The conversation turned to ALEC’s flagship report, Rich States, Poor States, now in its 19th edition. The report evaluates state economies using a consistent set of metrics designed to measure competitiveness. “We use 15 different factors that we have equally weighted throughout the course of these 19 years. Things like tax rates, regulation, labor policy and overall size of state government,” Williams explained. “Wouldn’t it be great if we had this tool to help state lawmakers measure themselves versus the other 49?”

Once again, Utah claimed the top spot, continuing an unbroken streak since the report’s inception. Williams credited the state’s disciplined approach to governance. “They are good on policy across the board, but they’re always looking to improve and not fall behind by standing still,” he said.

Other high-performing states, including Tennessee, Idaho, and North Carolina, have similarly embraced low taxes and regulatory reforms. These policies, Williams noted, are attracting both residents and businesses at a rapid pace. Americans are “voting with their feet,” he said, relocating to states with stronger economic environments.

At the opposite end of the rankings, the outlook is far less optimistic. “They’ve been stuck at the bottom of the barrel for almost every edition of Rich States, Poor States. That is the state of New York,” Williams said, pointing to persistent outmigration and fiscal strain. “Nearly 2 million people over 10 years have left New York,” he added, calling it a clear signal of policy failure.

States like New Jersey, Vermont, and California face similar challenges. Williams summed up their governing philosophy bluntly: “If it moves, tax it, if it keeps moving, regulate it and if it stops moving, subsidize it.”

Ultimately, Williams framed the contrast as a tale of two economic cycles. States at the top restrain spending and foster growth, while those at the bottom risk compounding their challenges through higher taxes and shrinking tax bases.

“It’s not rocket surgery,” Williams said. “It’s basic economics and budgeting 101.”