Colorado has shifted from being an economically vibrant state to one facing challenges, drawing parallels with California’s issues. This change is attributed to various political and economic factors, highlighting the implications of governance styles.
• Demographic Changes: Colorado has seen a demographic shift, with over 12,000 residents moving to other states last year. The state’s population growth is now slower than that of Midwestern cities.
• Labor Market Concerns: The labor force in Colorado is shrinking, a rare occurrence outside severe economic downturns. Companies are leaving Colorado for better business environments, exemplified by TIAA moving its Denver office to Texas.
• High Housing Prices: Colorado ranks as one of the most expensive places for housing, with families needing more than six times their annual income to buy a home. This unaffordability is harming the state’s potential to attract business.
• Governance and Policy Issues: State policies influenced by California’s governance style, such as strict environmental laws and limitations on highway expansion, have contributed to infrastructure challenges and reduced business incentives.
• Targeting Businesses: Colorado has seen attempts to regulate or close specific businesses, indicating a rocky business climate and a trend toward politically motivated decisions that could drive companies away.
Although Colorado has not reached the extremes seen in California, it serves as a cautionary tale about the consequences of adopting similar political and economic policies. With high housing costs, stagnant demographics, and a weakening business climate, Colorado’s model is drawing concern for its future viability.
https://www.city-journal.org/article/california-colorado-population-economy
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