Image Credit: wallethub.com
The Center Square [By Jon Styf] –
A new report says Tennessee has the second-most positive change in gross domestic product.
The WalletHub report – which considered states’ economic activity, economic health and innovation potential – ranked Tennessee 15th of the 50 states and District of Columbia.
Tennessee received a score of 51.83 over 28 economic indicators.
Tennessee ranked sixth in economic activity, ninth in economic health and 37th in innovation potential.
Kent Jones, a Professor of Economics at Babson College, warns that more economic incentives aren’t the solution to luring more business to a state.
“I am not a fan of tax breaks and other temporary incentives,” Jones said. “Businesses may be happy to cash in on the incentives, but a long-term strategy for remaining in a particular area will more likely depend on the local pool of educated talent, business regulations, and the environment.”
West Virginia, Louisiana, Alaska, Mississippi and Hawaii had the next lowest scores.
Washington, Utah, Massachusetts, Colorado and California ranked atop the list.
Janet Harrah, the Senior Director for the Center for Economic Development and Research at Northern Kentucky University, said plenty of indicators show the overall U.S. economy is slowing.
“History tells us that when inflation is high and the Federal Reserve starts to raise rates, the economy will slow,” Harrah said. “That is indeed what has been happening according to many economic indicators such as the slowdown in business investment, the slowdown in consumer spending, and the slowdown in home sales and prices.”
About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.