New Mexico is the only state in the US to see a decrease in economic freedom over the past four decades

By Matthew D. Mitchell and Paul Gessing of The Fraser Institute.

• Despite many assets, New Mexico consistently lags its neighbors and the rest of the country. In the decade ending in 2022, the state ranked 47th in employment growth and 36th in real GDP growth. It has the third-highest poverty rate in the union, a larger share of children on federal food assistance than any other state, and a larger share of citizens on Medicaid than any other state.
• Individuals are more economically free when they are allowed to make more of their own economic choices. According to the Economic Freedom of North America index, New Mexico ranks 47th in economic freedom among the 50 US states and is well behind its closest neighbors.
• New Mexico is also the only state to have reduced the economic freedom of its citizens over the past four decades.
• In the most economically free quartile of US states, the population grew 8.3 percent from 2013 to 2022, about 10 times the growth rate of the least free states. New Mexico grew just one percent.
• After adjusting for inflation, the economies of the freest states grew on average, about 24 percent over the last decade. In the least-free states, they grew just 14 percent. New Mexico’s economy grew 13 percent over this period while its neighbors grew 31 percent.
• Even a modest 10 percent increase in New Mexico’s economic freedom would likely permit a family of four to earn about $10,000 more per year. Rich in history and culture, New Mexicans need not be materially poor.