Doug Loon: Unbridled spending won't result in another 'Minnesota miracle'

Aug 06, 2023

Once hailed as a beacon of strong economic policies and thriving businesses, Minnesota now faces serious economic consequences of single-party policies passed in the 2023 legislative session. Rather than a victory lap in the growth of government, isn't it time to foster a path to protect our private sector that has built our diverse and capable economy?

This isn’t partisan; just review the facts: Minnesota is losing population to other states, our entrepreneurial rate is amongst the lowest in the country, and, since 2020, Minnesota companies have placed $6.6 billion more in business expansions outside the state than out-of-state companies have invested here. The low unemployment rate, often seen as a positive economic indicator, is a double-edged sword, making it difficult for businesses to find and attract workers.

Take the recent CNBC report that named Minnesota No. 5 in the “top states for business.” Proponents of the progressive agenda have promoted this report as a noteworthy accomplishment — which it would be if it measured what truly matters to business. Read past the headline and you find that the report admits fault in a couple of critical ingredients in our state’s economic profile. We got a D+ in cost of business, 39th in the country. And our state of “Minnesota Nice” got a C- for business friendliness.

Supporters of this session’s progressive policies are quick to label this era as the "Minnesota Miracle 2.0." But the original "Minnesota Miracle" wasn't borne of unbridled spending or oppressive government regulations. Instead, it was a period of compromise and collaboration with all stakeholders, including business, under the stewardship of Gov. Wendell Anderson, who championed real tax reform to stimulate innovation.

This is in sharp contrast to the process and discourse we see today. Minnesota’s latest session was guided by new mandates, new taxes, expanded government regulations, and a growing appetite for new government spending. It lacks economic foresight to drain an $18 billion surplus while increasing taxes by $10 billion and spending by 33%.

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This is not a future we can afford. It's contrary to our shared values of prosperity, innovation, and collaboration that have defined our state for decades.

The impact of this legislative session goes beyond slowing the economy. We face a potential exodus of businesses and lost capital. We risk losing emerging startups and well-established companies that have been part of Minnesota's fabric for generations who will choose not to grow and invest here.

Those of us who work with businesses of all shapes and sizes across Minnesota stand united in our resolve. We will not surrender to the challenge or succumb to policies that we know are wrong for our economy, employees, and future.

Minnesota has been — and will be again — a great state to start and grow a business.

Getting to that point will take lawmakers engaging in meaningful dialogue and understanding the impact of their decisions on our economy. Businesses, both small and large, play an integral role in building communities that will shape the future of opportunity for all Minnesotans.

Let's recall the successes of the original "Minnesota Miracle" and forge a path that benefits not just businesses but all citizens of Minnesota.

Doug Loon is president of the Minnesota Chamber of Commerce.

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