New Mexico not Prepared for “New Economy”

Some New Mexicans, especially those directly involved in promoting economic development are feeling rather proud of themselves. The new Tesla motors plant will be built in Albuquerque and Intel is keeping its plant in Rio Rancho. A new study from the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation (ITIF) may throw some cold water on that.
Apparently, New Mexico is losing ground in the battle to “create an environment that fosters innovation and high skills in order to help fast growing entrepreneurial firms and innovative existing firms expand.” With an oppressive gross receipts tax and a reliance on government favors and largesse, this is nothing new to the Rio Grande Foundation. It is true that studies and rankings are plentiful and can make economically-healthy states look worse than they are, but think about it. Does New Mexico really “create an environment that fosters innovation and high skills in order to help fast growing entrepreneurial firms and innovative existing firms expand?” Not by a long shot. Hopefully Governor Richardson and the Legislature will avoid the 11% spending hike they’re expected to approve. We’ll see.