Missouri and Illinois economies both get grades of “C”
The Corporation for Enterprise Development, which espouses policies that help Americans build savings, start businesses and buy homes, gives middling marks to both Missouri and Illinois.
Both states got solid C’s on CFED’s latest Assets and Opportunity Scorecard. That’s better than some of the neighbors — Arkansas was rated “F”, while Kentucky and Indiana earned D’s — but nearby Iowa, Kansas and Minnesota all got A’s.
Missouri’s best subject was health care, where it earned a “B.” The Show-Me State fell to a “D,” though, on the grouping of business and jobs measures. It ranked No. 47 in business creation and No. 48 in job growth.
Illinois was solidly middle-of-the pack in everything but education, where it earned a “B,” and home ownership, where it got a “D.”
Unlike some rankings, this survey also includes tips for improvement. Missouri should spend more money in poor school districts and adopt a state earned income tax credit, CFED says, while Illinois should help first-time home buyers and expand public health-care coverage.
(2 votes, average: 1.5 out of 5)
Loading ...
David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
Dave,
Were you in any way surprised by this?
This area is just an inch shy of depression mode/
Now new bsuiness, high unemployment, a second tier airport and flights down to commuter status at best, a city on the brink of distruction, high crime, enough dirt to build for 10 years most in forclosure, empty commercial buildings, including major manufacturing, no destination attractions within 10 miles of the city (except the Zoo, , botanical gardens, 6 Flags, and a few second class museums)
And the populous simply continues to allow it to happen.
Like most statistical exercises, these need to be examined carefully to determine the meaning (or lack thereof) behind various ratings.
Take the one of “Business creation rate (per 1,000 employees)” for example. The state with the highest ranking is Montana, followed by Idaho, followed by the District of Columbia!!!! The “businesses” in D.C. probably consist of new lobby groups that are “creating jobs” at influencing Congress to shift money towards one particular interest group at the expense of everyone else.
As to Montana and Idaho (and #4, Wyoming), the economies of these states are based mainly on natural resources (agriculture, mining, forestry, and tourism). New businesses in those sectors of the economy are fine — as long as it’s not just more real estate agencies — but they are probably not a model for more populous states like Missouri that must necessarily rely more on manufacturing and high tech service type businesses.
Cutting taxes is always a nice way to stimulate one form of economic activity or another, but where will the lost revenues come from if not higher taxes on something else?
Over time, the solution will be for people to vote with their feet and look for better opportunities elsewhere. Who will buy the house in suburbia that needs major updates and has a big lawn to take care of? Nobody. What young person wants to live in an unfriendly geriatric neighborhood? Noody. Eventually, suburbia will waste away and decay, leaving blight in many empty neighborhoods. Short selling will be the trend in the future if people want to sell at all. The people of St. Louis did it to themselves so they get what they deserve, namely negative equity and very few young neighbors who would have contributed to neighborhood stabilization and property taxes. Why buy when you can rent and have a ready exit strategy to leave St. Louis? You deserve better opportunities and these opportunities will be found elsewhere. Go young people and don’t get stuck here! If you buy a house, you are tied to the limited opportunities here. Put down your roots elsewhere.