In a blistering critique, a top Minnesota Republican is taking aim at Governor Tim Walz, accusing him of driving the state’s economy into the ground.
House Republican Whip Tom Emmer, R-Minn., pulled no punches as he lambasted Walz’s economic policies, particularly in light of his recent selection as Vice President Kamala Harris’s running mate for the upcoming election.
Emmer charged that Walz’s tenure as governor has been marked by repeated missteps, especially in his attempts to restore the state’s economy following the COVID-19 pandemic. According to Emmer, the North Star State, already burdened with some of the highest tax rates in the nation, has seen these rates soar even higher under Walz’s leadership, setting Minnesota on what he describes as a path to “economic disaster.”
“Tim Walz does not have a budget bone in his body,” Emmer declared. “He doesn’t understand how business works. He’s a school teacher, which is fine, but he’s never run anything in his life, and that shows when he became the CEO of the state of Minnesota.”
Emmer didn’t stop there. He drew a sharp comparison between Walz and another well-known liberal governor, quipping, “This is just Gavin Newsom in a flannel shirt.” The reference was clear: Emmer sees Walz as just another tax-and-spend liberal, no different from the governor of California, who has also faced criticism for his economic policies.
Emmer’s frustration is rooted in the numbers. Last year, Walz and his administration blew through a staggering $17.5 billion budget surplus, only to turn around and saddle Minnesotans with $8 billion in new taxes and fees. For Emmer, this is the height of fiscal irresponsibility.
“Minnesota has one of the worst business tax climates in the country,” Emmer asserted, pointing to a report from the Tax Foundation that ranks Minnesota 44th out of 50 states for its business tax climate. He highlighted the exodus of residents and businesses from the state, attributing this trend directly to Walz’s high-tax policies. “We’ve got people there, frankly, leaving the state in droves because of his high tax policies,” Emmer added.
The data seems to support Emmer’s claims, at least in part. According to the Bureau of Economic Analysis, Minnesota’s economy has lagged behind the national average since Walz took office. The state’s economic growth has been an anemic 6.2 percent, compared to the U.S. average of 11.5 percent. This means that under Walz’s leadership, Minnesota’s economy has grown at roughly half the pace of the rest of the country.
Employment growth in the state has also been lackluster. From January 2019 to June 2024, job growth in Minnesota increased by just 0.5 percent, a stark contrast to the 5.8 percent increase seen nationwide over the same period. These figures paint a troubling picture of an economy that is struggling to keep up with the rest of the country.
However, it’s not all doom and gloom under Walz’s tenure. Despite the criticisms, there are a few bright spots in Minnesota’s economic landscape. The state’s unemployment rate, for example, has consistently been lower than the national average. As of June 2024, Minnesota’s unemployment rate stood at a commendable 2.9 percent, roughly 30 percent lower than the U.S. average of 4.1 percent. This suggests that, while growth may be sluggish, those who want jobs in Minnesota can generally find them.
Inflation in the state has also been relatively tame compared to the national average. Bureau of Economic Analysis data shows that Minnesota’s inflation rate is currently at 2.6 percent, compared to the U.S. average of 3.3 percent. This could indicate that, despite the challenges, Minnesota has managed to keep some economic pressures in check better than other parts of the country.
Yet for Emmer and other critics, these positives are overshadowed by what they see as Walz’s fundamental mismanagement of the state’s finances. The combination of high taxes, slow economic growth, and a struggling job market has led many to question whether Walz is the right leader for Minnesota’s future, especially as he prepares to take his policies to the national stage alongside Kamala Harris.
As the 2024 election approaches, the economic performance of states like Minnesota will undoubtedly be a focal point in the broader debate over the direction of the country. And for Minnesotans like Emmer, the stakes couldn’t be higher.
