Missouri's economy is growing, but not as quickly as the nation's economy as a whole. That's what Joe Haslag, an economics professor at the University of Missouri-Columbia, says. He said the U.S. economy grew 2.5% last year, while Missouri's economy grew just 2%.
“We haven’t seen any of the things that we think are the primary drivers of growth,” Haslag told Missourinet.
He said some sectors of Missouri's economy are strong – namely mining, logging, education and health care, and leisure and hospitality. But the Show-Me State lags behind most of the country in high-tech and information-based jobs.
“Our average annual growth rate was somewhere around 45 to 48 in the 50 states, depending on when you measure our growth rate,” Haslag said. “So there’s no doubt we’re lagging behind.”
He added that there is no high-tech highway in Missouri on the level of Silicon Valley in California or Route 128 in Massachusetts.
“I think we've realized over the last few decades that Missouri has been growing more slowly compared to the rest of the country,” Haslag said. “I think there are politicians with good intentions who are trying to subsidize certain industries to encourage them to grow, and those subsidies are being used, but that doesn't show up in fundamental strengths.”
He suggested policymakers should focus on creating incentives for high-tech companies to locate in Missouri, but also said that would require a long-term approach that likely wouldn't produce results “overnight.”
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