New Mexico’s economy has been under-performing at a time when one of the state’s major businesses, the oil industry (31% of our tax revenue) has been booming.
Unfortunately (for the state at least), between slowing growth in Europe and China and an apparent willingness on the part of the Saudis to see oil prices drop further, oil prices could be in for further declines in the intermediate future.
As a motorist, I’m thrilled. As an extremely-interested observer of New Mexico’s economy and economic policies, I wonder what this means for New Mexico. Perhaps a 1980s style oil bust could create additional momentum for free market reforms like Right to Work and pro-growth tax and regulatory reforms? We’ll see.