Patrick Knight: Let’s reignite Minnesota’s economic engine

If we want to build a future of prosperity and opportunity, we need to re-commit to growing the economic engine that sustains us.

We are a 100-person manufacturing company based in Minnesota, competing with firms across the country. Businesses like ours account for 1.3 million Minnesota jobs—about half of all employment in the state. Those jobs, in turn, help fund the state budget through the taxes our employees and businesses pay.

For decades, Minnesota enjoyed a reputation as an economic leader. But in recent years, the momentum has slowed. From 2019 to 2024, Minnesota ranked 38th in GDP growth, 38th in job growth, and 33rd in per capita income growth. (These and other concerning trends are documented in the Minnesota Chamber of Commerce’s Minnesota: 2030 report series, a thoughtful analysis of where the state stands—and where we need to go).

Here are practical ways St. Paul can help:

Grow the population

A growing economy needs people—both to fill jobs and to drive consumer demand—but
Minnesota currently ranks 42nd in net domestic migration, with more people leaving than
arriving, especially among young adults.

We can reverse this trend by making it more attractive to live and work here:

• • Lower the personal income tax burden. Minnesota has the 7th highest overall individual tax load.
  • Reduce child-care costs. We rank 3rd in the nation for the cost of infant care.
  • Make housing more affordable. Twin Cities home prices rival those of Chicago.
  • Invest in public safety. Property crime in Minneapolis is more than twice the national average.
  • Recommit to strong public education. In 2017, more than 60% of students met grade-level standards in reading and math. Today, it is below 50%.
  • Support legal immigration. Some of our best employees are legal immigrants.

Boost productivity

Skilled workers and business investment are the backbone of economic growth. We need:

• Education systems that emphasize skills, merit, and achievement (see above). Employers are economically rational—we care about whether people can do the job; everything else is secondary.
• Faster, more predictable permitting. Minnesota’s permitting timelines are among the slowest in the country, discouraging business investment.

Control business costs

Minnesota has the highest corporate tax rate in the country at 9.8%. While current utility costs are manageable, the state’s ambitious goal of carbon-free electricity by 2040 could push costs higher—especially if we move faster than the grid can reliably support.

We also need practical policies on workforce and labor:

• Enforce federal immigration laws. When the state inconsistently enforces federal
  immigration laws, it transfers some of the burden, and risk, to employers.
• Monitor the rollout of the new paid family leave program, scheduled for 2026. If usage is higher than expected, labor availability will become a serious challenge for employers like us.

It is not all doom and gloom. Minnesota still benefits from a strong workforce, a legacy of sound infrastructure, and a quality of life many states envy. But we cannot live off our reputation forever.

Consider this: In 2022, Minnesota businesses added just 5,000 new jobs. That same year, Indiana businesses added 25,000. North Carolina added 29,000. We are no longer the destination of choice for businesses or workers.

That is not inevitable. Minnesotans—whether born here or newly arrived—are welcomed into a community that is hard-working, resourceful, and conscientious. We are blessed with incredible geography and a strong legacy. With business-friendly policies in St. Paul, we can reignite a strong and dynamic economy—one that allows companies like ours to deliver more and better jobs for Minnesotans—and opportunity for all.

Patrick Knight is CEO of Good Sense Foods. 

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