Even in the middle of an oil boom New Mexico has weak personal income growth

New Mexico is in the midst of an unprecedented oil and gas boom. Sadly, you wouldn’t know it from looking at the State’s economic policies or data. You also couldn’t tell from visiting its major cities where homelessness and crime run rampant and the economy remains dependent on federal spending and oil revenues.

According to Bureau of Economic Analysis data compiled by the Committee to Unleash Prosperity,  during 2022 New Mexicans experienced personal income growth that was slower than the national average in 2022. Pro-growth tax reforms like those enacted under the late Bill Richardson helped increase personal incomes in New Mexico. Sadly, even with a flood of oil revenue the Legislature and Gov. seem unwilling or unable to grasp the need for tax reform and reduction.

New Mexico personal incomes are among the very lowest in the United States, so there is plenty of room for improvement, but that requires better policies.