What can state governments do to boost the economic well-being of what is an educated person pdf people? That is the central question of state economic policy. Incomes and wages can increase across an economy when productivity—production per capita—increases.
States have many tools in their arsenal to increase productivity, including investments in public infrastructure, in technological innovation at public universities and other institutions, and in workers through the education and training systems. But many states have been retreating from their responsibility to ensure state economic growth that benefits all residents in favor of a short-sighted approach to economic development. In these states, the focus is on luring employers from other states with strategies that do not lead to rising incomes because they do not make the workforce more productive.
Even worse, the focus drains resources from the most important, proven, path to increasing productivity: investments in education. Overwhelmingly, high-wage states are states with a well-educated workforce. There is a clear and strong correlation between the educational attainment of a state’s workforce and median wages in the state.