Overregulation: among New Mexico’s numerous economic stumbling blocks

How can a state that has beautiful weather, wide open scenery and spaces, and nearly unlimited money thanks to the oil and gas industry, still be among the most impoverished in the nation? It takes terrible management by the political class and compliant voting.

But, it also takes bad policymaking on many different fronts. One of these is regulations. Unnecessary government regulations slow economic growth and make doing business more difficult than it needs to be. Sadly, on top of New Mexico’s high/complicated taxes, poor education system, generous welfare program, having to compete for talent with the Labs and others, and high crime, according to a report from the Cicero Institute New Mexico ALSO harbors a business-unfriendly regulatory structure. New Mexico ranks tied for dead-last 48th nationally in the Cicero Institute report.  Only Georgia and Pennsylvania tied New Mexico. Neighboring Colorado and Utah were tied for 1st place while Arizona ranked 5th.

Among the factors included in the report were regulatory sunset provisions, requirements for cost-benefit analyses, independent review, and venue flexibility. The report includes great information about how these abysmal rankings can be improved and how New Mexico’s political leaders can turn things around.

The oil and gas boom has helped grow the size of New Mexico government, but the State has NOT improved overall because its policies have generally gotten even further away from free market. An effort to at least provide cost benefit analysis of legislation and even sunset outdated and unnecessary laws could help New Mexico move in a more positive direction, but only if voters and policymakers act.