Louisiana's clout isn't paying off yet, new report says
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Louisiana punches above its weight politically and economically, but a new report questions whether residents are benefiting.
Why it matters: The state's influence isn't necessarily translating into lower costs, population growth or other clear benefits for residents, according to Ohio River South CEO Howard Franklin.
What he's saying: "There's already a lot of awareness of how important the state is to the country's energy independence and its energy economy," he says. "That import is just rising."
- And yet, "there are a couple … narratives that actually cut against the idea that having this highly placed congressional representation is working in the state's favor," Franklin says.
The big picture: Louisiana stands out within the South even as the region itself now generates more GDP value than any other in the U.S., according to Ohio River South's new report, "Accelerating South."
- "There's so many fault lines that Louisiana sits at the middle of," Franklin says.
- Not only are federal relief dollars still a major part of the state's economy, but Louisiana representation also has an outsized role in Congressional leadership and among President Trump's inner circle, Franklin says.
Yes, but: It was hard to suss out what that influence has translated to in real terms, Franklin says.
One example: Insurance rates.
- "The South is becoming a region where the cost of insuring real estate — residential, commercial, and infrastructure — is now a material input to every site-selection, capital-allocation, and migration decision," the report reads.
- Yet Trump allies like Rep. Steve Scalise or Rep. Mike Johnson haven't been known for aggressive insurance reforms, Franklin notes, as the Trump administration pushes "the cost of dealing with climate change down to the state."
The intrigue: A lot of the industry Louisiana has historically relied on also made it more vulnerable to climate change, and "at some point, I think that the politics has to catch up with the industry and the economy," Franklin says.
What we're watching: Whether recent major economic development announcements may help nudge along state growth.
- Another way Louisiana appears exceptional in the South is that the region has recently become a population magnet — but Louisiana has had a hard time attracting new residents.
- "When you come south … of the Mason-Dixon line, then you've got a bunch of other choices to make," Franklin says, and cost of living and economic opportunity are key drivers of those choices.