TThe stirring performances by Vice President Kamala Harris and Governor Tim Walz, as well as the Obamas, Clintons, Oprah and many others at the Democratic National Convention were a defining moment for the 2024 presidential election. Now that both parties have officially introduced their candidates to America and voters are gradually turning their attention to the election, the Democratic and Republican political machines will be in full swing – including door-to-door campaigning, campaign speeches, campaign ads and, of course, the popular attacks.
Many voters may have already been exposed to these machinations. One theme circulating among some media pundits is criticism of Minnesota’s economy under Governor Walz. What is overlooked, or at best mentioned in passing, is the fact that Minnesota has repeatedly been ranked as one of the best states in which to live and do business.
The “Land of 10,000 Lakes” was ranked sixth in CNBC’s list of the best states for business. CNBC cites advantages in infrastructure (fifth best state), quality of life (fourth), access to capital (twelfth) and technology and innovation (twelfth). Most notably, Minnesota has been in the top 10 of the list throughout Walz’s tenure.
CNBC isn’t the only source of glowing reviews of Minnesota. U.S. News & World Report has also consistently ranked the state among the top five since Walz began his first year in office. Together, these two independent state-level sources demonstrate what so many CEOs know: Doing good is not a contradiction to success. This is nothing new for Minnesota’s business leaders. They have long embodied this spirit of corporate responsibility. In 1907, George Draper Dayton, founder of the company that later became Target Corporation, set aside 5% of his pretax profits for charity. After World War II, several other companies in the state adopted the practice, and eventually the Minneapolis Chamber of Commerce formed the Five Percent Club to instill the philanthropic spirit in the business community.
Perhaps this even explains how Walz has managed to keep the heads of some of the world’s largest companies in their jobs, despite the state having the highest corporate tax rate in the nation. The Minneapolis-St. Paul metropolitan area is home to the third-most Fortune 500 companies per capita in the nation and is home to well-known American brands such as 3M, General Mills, US Bancorp, Target and Best Buy, not to mention leading companies such as Cargill and Mayo Clinic.
Governor Walz can also draw on hard economic data to back up the continued progress made during his tenure. Minnesota has a AAA credit rating, leads the nation in renewable energy generation, has one of the highest median household incomes, and—according to our own research—the third-best return on investment for state pension funds over a 10-year period.
Minnesota’s economy, like any other state, has room for improvement, but its performance should be viewed in a holistic context. Real GDP growth for 2023 lagged behind national growth and that of neighboring states. However, each state is often dependent on its domestic industries and businesses, and with that comes idiosyncratic ups and downs in performance. For example, the Midwest as a region lagged behind the national rate in the last two quarterly real GDP growth reports. Yet Minnesota still performed better than most of its neighbors, including North Dakota, South Dakota, Nebraska and Iowa.
Net migration and population change are other metrics closely watched by states. Minnesota has had mixed results on both counts. While domestic net migration was negative in 2023, total net migration, which includes international migrants, was positive, returning to typical pre-pandemic numbers. The impacts of COVID-19 and an aging population also cannot be ignored. With many baby boomers retiring early and remote work becoming the norm, migration to the warmer state of Florida has been a reality for many states, with no governor finding an immediate remedy.
Walz is well aware of these things. Although many partisan commentators label him a far-left progressive, he is praised by business leaders for his successful investments in workforce development and education, business expansion, public infrastructure and affordable housing.
So when voters start asking whether Walz’s economic program can serve as a model, the answer is clear: “Sure!” While much of the Harris-Walz campaign’s economic program has yet to be announced, key policies are already starting to trickle down. Granted, they won’t be perfect, but the policy positions of candidates from both parties will never meet the expectations of even their most ardent supporters.
What is important – regardless of their political party affiliation – is the candidates’ ability to lead all Americans, including business and society, with honesty, integrity and intelligence. Indeed, these were the values of the original American progressive spirit, founded in Minnesota exactly a century ago and supported by leaders in the public and private sectors. The election of Governor Walz reminds us of the values and qualities that have shaped America in the past and that characterize Harris today.
Milton Friedman, the great proponent of laissez-faire economics, perhaps put it best in his often-quoted but rarely read September 1970 essay: “It may well be in the long-term interest of a corporation which is a major employer in a small community to devote its resources to providing amenities for that community or to improving its government.” Friedman may have been on to the right message—his message is worth remembering now that America is entering the height of the election season.
