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Iowa: 16th in freedom?

March 03, 2009

The Mercatus Center, a libertarian think-tank, has released a report that attempts to rank states by how free they are. Using 2006 data, Iowa was the 16th most free state by their criteria; New York was the least free. The report has this to say about Iowa:

Despite frequently electing politicians who do not seem very interested in preserving freedom, Iowa’s policies are fairly freedom friendly (#12 economic, #25 personal, #16 overall). The state particularly stands out on economic regulation. Iowa has a light touch on land-use planning. Labor regulations are business friendly, with right-to-work, no minimum or prevailing wage laws, and a lightly regulated workers’ compensation regime. Health insurance mandates are low. The court system is very good. On personal freedoms, the picture is mixed. Marijuana sentencing definitely needs reform. Private schools are highly regulated, and home school standardized testing and notification requirements are burdensome. Asset forfeiture needs reform. However, most forms of gaming are permitted, at least as a local option (oddly, social gaming is prohibited). Individual and grassroots PAC political contributions are unregulated, but corporate contributions are banned altogether. Smoking bans permit designated smoking areas and exempt bars. Sobriety checkpoints are banned.

A lot has changed since 2006. Of course now bars are not exempt from our draconian smoking laws, and there are no designated indoor smoking areas. Iowa does have minimum wage laws (and did in 2006, by the way). If legislative leaders have their way, right-to-work will be gutted; prevailing wage legislation came within one vote of passage last week, and may still pass this session.

Source: The Mercatus Center. Click to enlarge.

Iowa already has one of the worst business tax environments in the country. Don't think that frittering away Iowa's main competitive advantage -- business-friendly regulation -- will somehow reopen the Maytag plant and give everyone good $40 per-hour jobs with full benefits.

Tags: iowa tax policy.Mercatus Center.