Economy

James Taylor presentation: Affordable Energy Threatened in New Mexico

On April 8, 2015, James Taylor of the Heartland Institute visited Albuquerque to discuss policies that are negatively impacting New Mexicans' access to affordable, reliable energy (especially electricity). You can watch his full presentation below and access his powerpoint slides here:

Right to Work States: Where the new Jobs Are

With the 2015 legislative session about to end, it's a near-certainty that right-to-work (RTW) legislation, which passed the House, will not be voted on in the Senate.

Given New Mexico's struggling economy and declining population, it's unfortunate that senators have rejected a powerful, and cost-fee, tool for job creation. Since the start of the year, the Rio Grande Foundation has been tracking announcements of expansions, relocations, and greenfield investments published on Area Development's website. Founded in 1965, the publication "is considered the leading executive magazine covering corporate site selection and relocation. … Area Development is published quarterly and has 60,000 mailed copies."

Here are the findings for January:

jan_rtw_jobs

Here are the findings for February:

feb_rtw_jobs

In all, 27,389 jobs (80.6 percent) were to be created in RTW states. Only 6,605 jobs (19.4 percent) were planned for non-RTW states.

Notably, many projects involved shifts from non-RTW to RTW states:

* Brad Penn Lubricants moved production from Pennsylvania to Indiana.

* Mercedes-Benz USA relocated its corporate headquarters from New Jersey to Georgia.

* American Stair Corporation moved its operations from Illinois to Indiana.

Contrary to unions' claims, the positions slated for RTW states are not limited to "McJobs," but run the gamut, including healthcare, software/IT, manufacturing, finance, engineering, and logistics/warehousing -- exactly the kind of opportunities New Mexico needs to reverse its economic woes.

In all, New Mexico's four RTW neighbors are projected to gain 6,122 jobs, while non-RTW Colorado posted no project announcements.

Some methodological specifics:

* All job estimates -- "up to," "as many as," "about" -- were taken at face value, for RTW and non-RTW states alike.

* If an announcement did not make an employment projection, efforts were made to obtain an estimate from newspaper articles and/or press releases by elected officials and economic-development bureaucracies.

* If no job figure could be found anywhere, the project was not counted, whether it was a RTW or non-RTW state.

Rio Grande Foundation Releases Upgraded “Freedom Index” Legislative Tracking Tool for 2015 Session Are your legislators voting for or against freedom?

(Albuquerque) As the New Mexico Legislature moves into its final weeks and several important floor votes have been taken, the Rio Grande Foundation is launching an updated and easier-to-use “Freedom Index” legislative tracking tool. The goal of this tool is to review legislation impacting freedom in our state.

Lawmakers and the interested public can use the “Freedom Index” to get an independent, free market view of pending legislation. Moreover, voters can see whether their legislators are voting for free markets or for bigger government. Votes tallied are “floor” votes.

Users can see:

  • The relative voting performance of legislators according to the Freedom Index;
  • The relative voting performance of each party according to the Freedom Index;
  • The analysis criteria behind the legislation ranking;
  • Links to legislation detail;
  • Links to legislator Information, including contact information;
  • And selections of legislation by relevant categories.

Our analysis will be available before final votes on those bills that are analyzed and can be used by both legislators, legislative staff and interested voters to debate the merits of a bill.

In short, the Index provides an excellent analysis of bills that will come before committees or a vote on the floor as well as tracking a legislator’s Freedom Index score. The public will find our Freedom Index to be a tool to hold elected officials accountable for their vote and to gain a better understanding of the legislation being proposed by the House or Senate members.

Rio Grande Foundation president Paul Gessing said of his organization’s new legislative tracking web site, “We are thrilled to add the freedom perspective to the legislative process in Santa Fe. For too long, the special interests have run wild with the voice of taxpayers and those who pay the bills too often pushed to the side.”

It's time to fix a flawed tax shift

This op-ed ran in The (Farmington) Daily Times on March 1, 2015. 

On January 1, 2005, food bought at New Mexico's grocery stores was excluded from the gross receipts tax, or GRT. In exchange for the break, the GRT was hiked on all other purchases.

A decade later, it's clear that the tax shift was a mistake.

With several proposals before the legislature to reinstate the GRT on food, it's time for an honest examination of how and why the well-meaning exemption failed.

Many of the state's liberal activists and organizations opposed ending the food tax. In 2003, New Mexico Voices for Children argued that the "very poorest people will not receive the benefits," because most "use food stamps, which are not subject to gross receipts taxes." (A staggering 21.5 percent of our citizens participate in the federal program.) In addition, many household essentials such as soap, paper products, and toothpaste remained taxable. Utility and motor-fuels taxes were not touched, either.

Right to Work and Purchasing Power: Just the Facts Real-World Data Debunks ‘The Right to Work for Less’

(Albuquerque, NM) – New research by New Mexico’s free-market think tank finds that a dollar goes much further in right-to-work (RTW) states.

Legislators in Santa Fe are debating whether to adopt a RTW law for New Mexico. Opponents of the measure charge that residents of right-to-work states are poorer, and that if enacted in The Land of Enchantment, there will be “greater expenditures for subsidized food, housing and health care for newly hired workers who will never make a living wage.”

The Rio Grande Foundation’s research debunks such claims.

The issue brief “Purchasing Power and the Right to Work” finds that once adjusted for the the Bureau of Economic Analysis’s estimate of the cost of living, disposable income, per capita, is equal in the two types of states. Using an alternate calculation developed by the Missouri Economic Research and Information Center, income in RTW states is 8.5 percent higher.

Many ways that life’s basic necessities are costlier in non-RTW states, including:

  • The list price of a single-family home is 26.5 percent lower in RTW states.
  • Energy is more affordable in RTW states – for example, electricity is a whopping 27.7 percent cheaper.
  • Healthcare is more affordable in RTW states, as are eldercare expenses such as home-healthcare aides and assisted living.
  • RTW is associated with lighter local-and-state tax burdens and residents of non-RTW states labor more than 10 days longer to pay their annual local, state, and federal tax bill.

“These statistics show that union bosses’ favorite argument against RTW is hollow,” said Dowd Muska, research director with the Rio Grande Foundation and author of the new report. “When adjusted for purchasing power, RTW states are at least as wealthy as their compulsory-unionism competitors – and in all likelihood, wealthier.”

“Contrary to the allegations of Big Labor’s well-funded lobbyists and activists,” concluded Muska, “RTW is not a ticket to impoverishment. Life is good where unions must earn their members’ financial support. Little wonder why so many RTW states have strong economies and growing populations.”

RGF comments on license plate proliferation/legislation

The various issue-oriented license plates offered were discussed recently on KRQE Channel 13 and Rio Grande Foundation was asked to weigh in. In the grand scheme of things, there are many more wasteful government programs, but it is hard to see how New Mexico taxpayers come out ahead on the license plate deal. Full story below:

Recent KNME Discussion of Obama "Free" Community College Proposal

I recently sat down with Gwyneth Doland at KNME and CNM President Katherine Winograd to discuss the Obama Administration's proposal for "free" community college. Needless to say, we are not big fans of Obama's proposal. Even Winograd doesn't seem to be fully-convinced that the program is the best use of taxpayer dollars.

And, while RGF opposes the Obama proposal, we do value the educational value of community colleges and emphasized their importance in a 2014 paper outlining needed reforms for New Mexico's lottery scholarship program. Community colleges (like CNM) are one way to get more "bang" for lottery scholarship bucks.

The full interview is below with a "web extra" below that.

Viewpoint: our right-to-work math is not 'kindergarten'


It pleases me to no end that a report published by my organization back in July of 2012 has recently become an object of such criticism and outrage among left-wing critics of “right to work.” It shows that our efforts to put “right to work” at the top of the Legislature’s policy agenda have paid off and that New Mexico may finally be on the verge of adopting some long-overdue reforms that will shake our economy out of its torpor.

Both the union-funded, Washington-based Economic Policy Institute and University of New Mexico sociology professor Tamara Kay made news recently by giving the report an “F-grade” and calling it “kindergarden math.”

To be clear, truly conclusive data are hard to come by in the social sciences. The statistical tool known as regression is useful and it was used in our 2012 report, but the ideal method would be to have two or more experiments running with New Mexico moving forward with or without a “right to work” law in place. After a given period of time you compare notes and draw conclusions. That is impossible in the real world so “proof” is elusive and debates (and name calling, apparently) continue.

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