By John A. Tures, Professor of Political Science, LaGrange College
The USA economy is number one in the world, outpacing China, especially in the category of GDP per capita. The American economy added more than 200,000 jobs, plus wages rose while inflation is being held in check, according to the Department of Commerce.
Those who think the U.S. can do better are quick to point out that some places in America are doing better than others. One reason some states may be benefitting from the economic recovery is that they have a better climate for doing business. I look at which states are doing the best to attract business, how Georgia is faring, why the Peach State is doing well in some ways, and where it could improve.
Among the top states to do business, according CNBC’s survey, Georgia ranks fourth overall, behind Virginia, North Carolina, and Texas, but ahead of Florida, Minnesota, Ohio, Tennessee, Michigan and Indiana.
For those who follow politics, among the top ten states, five voted for Joe Biden in 2020 while the others voted for Donald Trump in 2020.
Georgia does quite well in the categories of infrastructure (first), the quality of the workforce (fourth), and the economy (seventh). And those are important factors that a business wants.
This could help Georgia Secretary of State Brad Raffensperger in his quest for the governor’s office. He’s made his business background, and the ease of doing business, a priority for his tenure in office.
But that doesn’t mean Georgia’s got perfect scores. CNBC’s measure shows the Peach State performed poorly in quality-of-life measures (40th among all states), something this state is going to need to work on. There’s plenty to do in Georgia, so I am guessing it has something to do with poor commute times and safety, as well as the need for better medical coverage for all Georgians, something that Medicaid expansion might be able to help with.
When it came to other factors in the CNBC survey, Georgia finished in the top half of all states for the cost of doing business (23rd), technology and innovation (18th) and business friendliness (19th).
What this CNBC study shows is that being business-friendly isn’t as much about politics as we think. Of the next thirteen states in the top 25 (from number 11 to 25), states that voted for Biden make up seven, while states that voted for Trump are among the other six). And in the top 25 are the much-derided states California and New York as well as Illinois (with Chicago).
This ranking also shows that tax incentives, lax regulations, and financial arrangements aren’t always what businesses are looking for in deciding about the location. Many states which are at the bottom (New Hampshire, Maine, New Mexico, Rhode Island, Arkansas, Montana, Louisiana, Alaska, Mississippi and Hawaii) tout their business-friendly economy but come up short in a lot of these categories. Ditto some of others 30th and below, like Wyoming, the Dakotas, Idaho and West Virginia. If these states want more than eight Electoral College votes, they may consider what factors to guide one’s focus.
John A. Tures is a professor of political science at LaGrange College in LaGrange, Georgia. His views are his own. He can be reached at jtures@lagrange.edu. His “X” account is JohnTures2.
