Minnesota’s economic growth has outperformed the majority of other states, according to a recent report from the U.S. Bureau of Economic Analysis. The new report finds that Minnesota’s GDP grew by 2.8 percent in 2013, well above the national figure of 1.8 percent.
And that’s just a shapshot. The analysis also shows that Minnesota outperformed the national economy from 2010 to 2013. While the United States GDP grew by 6.1 percent over this period, Minnesota grew by 7.5 percent.
We have also outperformed many of our neighboring states, including Wisconsin, the state to which we are most often compared. Wisconsin’s economy has been weaker than the national average, growing by 4.5 percent from 2010 to 2013. This is despite strong claims that its tax and budget policy choices would result in stronger economic growth. As our friends at the Wisconsin Budget Project point out:
“Some conservatives have argued that Wisconsin’s economy would grow more rapidly because our state has been cutting taxes and practicing austerity…[But] Minnesota’s growth has been stronger for each of the last three years.”
This recent report is certainly good news for Minnesota. Additional good news is that Minnesota policymakers took action in the recent legislative session so that the benefits of economic growth will reach more Minnesotans. Raising the minimum wage will boost the incomes of about 325,000 Minnesota workers, and recent improvements to the Working Family Tax Credit and the Renters’ Credit will mean more families can make ends meet.
-Clark Biegler