Government spending does not drive economic growth

Iowa has been rated as one of the most fiscally prudent states for several years running, due to sound tax and spending policies. Yet thanks in part to a recent downturn in the agricultural economy, economic growth in the state has slowed. Additionally, the state has been losing residents to other states every year since 2013, and has one of the highest outflows of young residents with bachelor’s degrees, leading to some concern over a potential “brain drain.” Though government spending is often lauded as a tool for addressing these sorts of trends, Iowa will be better served by continuing to follow a path of fiscal conservatism.

Government Spending Does Not Drive Economic Growth 

Iowa has been rated as one of the most fiscally prudent states for several years running, due to sound tax and spending policies. Yet thanks in part to a recent downturn in the agricultural economy, economic growth in the state has slowed.

Additionally, the state has been losing residents to other states every year since 2013 and has one of the highest outflows of young residents with bachelor’s degrees, leading to some concern over a potential “brain drain.”

Tax incentives vs. tax freedom: Which spurs economic growth?

Incentives may lure developers and data centers, but Iowa’s high property tax situation should be a “fire bell in the night” for local government officials. High property taxes will deter economic growth. They will discourage new residents, entrepreneurship, and force people to leave.

Kim Reynolds Sets the Standard for Good Governance. Cities Should Follow Suit.

Kim Reynolds Sets the Standard for Good Governance. Cities Should Follow Suit.