North Carolina’s economic outlook ranked second in the United States in a new analysis of all the states’ economic competitiveness from the American Legislative Exchange Council (ALEC).
The 9th Edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index uses data to rank the 2016 economic outlook of states using fifteen equally weighted policy variables, including various tax rates, regulatory burdens and labor policies.
The economic outlook, the report said is “a forward-looking forecast based on the state’s standing (equal-weighted average) in … 15 important state policy variables,” including being a right-to-work state, tax rates, the tax burdens, and other factors that influence a state’s prosperity.
Not only did our state rank second for its economic outlook, it has shown rapid improvement. Through 2013, North Carolina ranked in the mid-twenties. That jumped to sixth in 2014, fourth in 2015, and now second.
What happened after 2013? North Carolina began to reap the benefits of throwing off a century of rule by one party, as Republican Pat McCrory and GOP majorities in both chambers of the legislature began passing key fiscal reforms. Those reforms are paying off for North Carolina and helping to create a more competitive economic climate.
To learn more about the state’s fiscal history leading up to that point, turn to our budget policy guide “Unlocking the State Budget: 1985-2012” by clicking here.
Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index is authored by economist Dr. Arthur B. Laffer; Stephen Moore, distinguished visiting fellow at the Heritage Foundation; and Jonathan Williams, vice president of the ALEC Center for State Fiscal Reform.
Click here to read the ALEC report.