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There used to be a healthy economic competition between Minnesota and Wisconsin. The states were neck-and-neck for years in employment growth and other key indicators. It became even more fun with Wisconsin Gov. Scott Walker's 

For awhile, it really sounded like Wisconsin was eating our lunch. Back in February, a Wisconsin lawmaker even sent out an 

“open letter” to Minnesota businesses 

encouraging them to relocate to Wisconsin in response to Gov. Dayton’s tax and budget proposals.

But as we've noted repeatedly in past posts (find a sampling 

) Wisconsin talks a better game than it plays when it comes to economic success. The facts show Minnesota performed better than the Badger State in keeping people employed during the Great Recession and adding jobs in the recovery.

This spring, though, there's been mounting evidence that, economically, Wisconsin's not even in the game.

produced by the Federal Reserve Bank of Philadelphia.

 is a good apples-to-apples comparison, combing four indicators (nonfarm payroll employment, average hours worked in manufacturing, the unemployment rate, and inflated-adjusted wages) into a 

February data showed a marked uptick in the index for Minnesota over Wisconsin. April data showed Minnesota pulling away as Wisconsin staggered.

Here are the data indexed to a common starting point in 2007, before the recession began.

The separation between Minnesota and Wisconsin has become even more pronounced this spring. In fact the 

 forecasts Minnesota's economy continuing its solid growth the next six months.

Wisconsin? It was one of only five states to 

I've noted in other posts that the data don't end the discussion about taxes and spending or the effects of fiscal policy on business decisions. Yes, it's possible the 

 and the new taxes that come with it will send Minnesota businesses running across the border.

Still, no matter what you think of the budget and tax policies of the two states, the bedrock economic data show Minnesota has outperformed Wisconsin for more than a decade and has accelerated its recovery the past three years while Wisconsin has stumbled.

From 1980 through the early 2000s, Minnesota and Wisconsin ran neck-and-neck in these 

The gap between Minnesota and Wisconsin has never been wider.

Economies recover. Wisconsin will see better days. For now, though, the economic competition between the two states isn't really much of a competition.

Paul Tosto

Author

There used to be a healthy economic competition between Minnesota and Wisconsin. The states were neck-and-neck for years in employment growth and other key indicators. It became even more fun with Wisconsin Gov. Scott Walker’s “Wisconsin Open for Business” rhetoric. For awhile, it really sounded like Wisconsin was eating our lunch. Back in February, a Wisconsin 

There used to be a healthy economic competition between Minnesota and Wisconsin. The states were neck-and-neck for years in employment growth and other key indicators. It became even more fun with Wisconsin Gov. Scott Walker’s “Wisconsin Open for Business” rhetoric. For awhile, it really sounded like Wisconsin was eating our lunch. Back in February, a Wisconsin Read more →


In the economic game, Minnesota is pulling away from Wisconsin

Go Deeper.

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