Recently, New Mexico saw the following bad jobs news. Specifically, New Mexico is losing jobs while its neighbors are gaining jobs.
But why is New Mexico economically-weaker than its neighbors? We have repeatedly made the case that New Mexico is lesseconomically-free and is less friendly to business. This is not a view isolated to a few reports, rather it is a consistent finding of those who report on such issues. The Rio Grande Foundation recently looked at eight separate rankings of business friendliness and economic freedom (see them below with appropriate links). They measure different things, but consistently find New Mexico to perform worse than its neighbors.
Mercatus Center (personal freedom scores were eliminated from our state rankings): New Mexico’s score: 28; regional average: 16.
Fraser Institute Economic Freedom: New Mexico’s score: 50; regional average: 12.
Forbes: Best States for Business: New Mexico’s score: 45; regional average: 15.
CNBC: Best States for Business: New Mexico’s score: 36; regional average: 17.
Chief Executive Magazine: Best States for Business: New Mexico’s score: 30; regional average: 11.
Tax Foundation: Business Tax Climate: New Mexico’s score: 38; regional average: 17.
Federation of Tax Administrators (Taxes as Percent of Personal Income): (note, since FTA ranks heavier burdens with a lower number, we have inverted the ranking so as to make the lower number “good” or more friendly to business and work and the higher number “less-so”: New Mexico’s score: 36; regional average: 16.
ALEC Rich States, Poor States: New Mexico’s score: 37, regional average: 12.
We put together the following map which illustrates the average scores on these various reports below. Clearly, New Mexico trails its neighbors when it comes to business friendliness and economic freedom.