Excerpt:
In a recent report by the Archbridge Institute, Louisiana ranked last among all 50 states in fostering social mobility, pointing to deep-rooted systemic issues that hinder upward economic movement.
Louisiana’s institutions and rule of law also ranked last by the Washington, D.C.-based policy group.
“Corruption perceptions in Louisiana are and have consistently been the worst in the country. This is true for both traditional corruption like bribery and quid pro quos,” the report said.
Among the many factors contributing to the state’s poor rank is a lack of “a quality legal system.” Louisiana’s tort system, according to the report, costs Louisiana residents $4,000 apiece or 3% of the state’s gross domestic product. […]
Experts have pointed to states like Florida, which have implemented reforms to limit contingency fees, standardize medical damage lawsuits, and reduce frivolous claims.
According to the report, these changes have resulted in lower insurance premiums and more equitable legal outcomes. Implementing similar reforms in Louisiana could help reduce the financial burden on residents, making it easier for them to invest in their futures and achieve their dreams.
While tax reform can make the state more competitive, addressing the high cost of insurance is equally important, Justin Callais, the report’s author and a senior economist with the Archbridge Institute, told The Center Square.
“You can lower the tax rates, which people like, and it makes us more competitive with other states. But if you don’t fix the insanely high cost of insurance, it’s just going to be impossible to get anything else,” Callais said. “If you save $3,000 on your income tax but end up paying $7,000 more in home and auto insurance, you’re still worse off.”
Read the full article at The Center Square.
Read Building on Momentum: Louisiana’s Path to Mobility here.
Read Social Mobility in the 50 States here.
The Center Square
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