A study done by Wallethub found that Kentucky ranks near the bottom of state economies coming in at 45th. This same website has the rankings of all the other states if you wish to take a gander at them. As to their methodology:
In order to determine the best state economies, WalletHub compared the 50 states and the District of Columbia across three key dimensions: 1) Economic Activity, 2) Economic Health and 3) Innovation Potential.
We evaluated those dimensions using 28 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest economic performance.
We then determined each state and the District’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
What brought Kentucky down? It appears to be our pension crisis:
Kentucky is ranked 38th in the United States in unfunded public pension plans per capita, according to a WalletHub spokesperson. The pension crisis is a hot topic in the governor’s race between GOP incumbent Matt Bevin and Attorney General Andy Beshear, a Democrat.
Bevin claims to have fixed the finding crisis, but he really didn’t. A court ruled how he passed his pension “reform” bill was unconstituional.
In the study’s economic health category, which included pensions, Kentucky was 45th. This category also includes unemployment rates, share of the population in poverty, and growth in number of businesses, among other statistics. According to the Bureau of Labor Statistics, Kentucky’s unemployment rate was 4.0 percent as of April, which is slightly higher than the national average of 3.8 percent.
Kentucky’s government surplus was also a reason for Kentucky’s low economic health ranking. Kentucky had the third-lowest government surplus in the country per capita, according to WalletHub. The state’s $114.4 million budget surplus at the end of the 2017-18 fiscal year was better than previous predictions, according to Kentucky Today.
Despite successes of some Kentucky startups — including Lexington-based mobile phone marketer Xooker and Lexington-based internet marketer Fooji — startup activity falls way behind other states, ranking 47th in the WalletHub study.
Great economic record for both Governor Matt Bevin and Senator Moscow Mitch to run on. I think Andy Beshear should have something to say about the state economy and those pesky pensions under Bevin’s administration. And Moscow Mitch will have been in charge of the state since he came to power in 1985. Might be some things Amy McGrath and others can point to about Moscow Mitch’s record.
Well, being 45th means we beat out such economic powerhouses such as WV, MS, AR, LA, and AK.
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