Good News and Bad for the Land of Enchantment

Hey, New Mexico, the Rio Grande Foundation notes that you receive "$2 in federal funds for each $1 state taxpayers pay in federal taxes."

That's the good news. The bad news is this:

Rather than benefiting the state's economy, high levels of federal spending seem to actually harm state economic development. Gessing clarified, "It is striking that our neighbors in Colorado and Texas each receive less from the federal government than is taken from their taxpayers ($0.79 and $0.94 respectively), yet Colorado's gross state product is 11th in the nation and Texas ranks 20th." In sum, Coloradoans and Texans enjoy stronger economies than New Mexicans even though the federal government gives less back to them than it takes.

New Mexicans may have little or no control over the location of military bases, Indian reservations, national parks, and other federal institutions, but Gessing argued, "All Americans, most especially residents of New Mexico, should disavow themselves of the notion that federal spending contributes to prosperity. This holds true no matter how much money that state receives relative to what it sends to the Nation's Capitol."

More here.

Full list of how much states get back per dollar sent to Washington here. A whopping 32 states get more back then they send in, with good, goddamn great New Jersey getting the rawest deal by pulling a measly 55 cents back for every buck sent DC's way.

Former Reasoner Matt Welch gives a high five to New Mexico Gov. Bill Richardson here.