By Bobbie Daniel, Commentary, Rocky Mountain Voice
Colorado, long admired for its breathtaking landscapes, vibrant outdoor culture, and once-thriving economy, finds itself at a crossroads.
Rising living costs, unaffordable housing, stagnant wages and increasing business closures are eroding the state’s appeal. A state once a beacon of opportunity is now grappling with mounting challenges that jeopardize its economic vitality.
Recent data highlights the gravity of the situation. According to the Common Sense Institute (2023), Colorado’s net population growth was a mere 7,236 people, ranking 16th nationally —- a stark contrast to its historic reputation as a magnet for newcomers. The University of Colorado’s Leeds School of Business reported a troubling 22% drop in new business filings compared to the previous year. Meanwhile, states like Utah, Texas and Florida continue attracting families and businesses with lower living costs and business-friendly environments.
For many working families, Colorado’s economic policies have become more of a hindrance than a help. Rising fees and taxes, escalating energy costs, stagnant wages and inflationary pressures have put significant stress on household budgets. Simultaneously, excessive regulations discourage private investment and stifle the innovation necessary for sustained growth. This creates a cycle of economic stagnation and declining confidence in leadership.
Overregulation and burdensome policies have made the state less attractive to families and small businesses, exacerbating an already precarious national and global economic situation. Adding to the strain is Colorado’s billion-dollar budget deficit — a glaring indication that government spending has far outpaced the revenue collected from hardworking families. This mismatch underscores a harsh reality: unsustainable policies ultimately fail. As the adage goes, “Eventually, you run out of other people’s money.”
Economic freedom offers a more sustainable and effective solution. When individuals and businesses keep more of what they earn, they reinvest that money into their communities. Families can afford better housing, education and healthcare. Furthermore, small businesses, which account for nearly half of private-sector employment in the U.S., can expand, hire and innovate when not burdened by excessive taxes and regulations. A flourishing business environment creates jobs and raises wages, providing stability for families while simultaneously increasing tax revenue without raising rates.
When individuals retain more of their earnings, they are empowered to make choices that best suit their unique needs, resulting in more efficient resource allocation. Families with greater income flexibility can save for emergencies, invest in education or even start businesses —actions that build wealth and long-term stability. Similarly, businesses freed from regulatory constraints can afford to offer higher wages, better benefits and more job opportunities, strengthening the state’s economic foundation.
In contrast, overregulation often redirects resources into compliance costs rather than productive investments. Colorado could learn from states that have simplified occupational licensing and cut red tape for entrepreneurs. These reforms have made it easier for individuals to enter trades and start businesses, fostering upward mobility and economic growth that benefits entire communities.
Reduced government intervention also fosters innovation, a critical driver of long-term economic success. Entrepreneurs and small businesses thrive in environments that reward risk-taking and creativity. Excessive taxation and regulation, however, discourage new ventures and often push existing businesses to relocate to more hospitable states, taking jobs and tax revenues with them.
In the absence of an overbearing government, private-sector solutions frequently emerge to address community needs more effectively and sustainably. Charitable organizations, local initiatives and employer-sponsored job training programs are often better equipped to address specific challenges than distant bureaucracies.
To revive its economy and restore its appeal, Colorado must return to core principles of fiscal discipline, individual empowerment and economic freedom. Reducing regulatory burdens, lowering taxes and fees, and investing in workforce development will strengthen the state’s economy and rebuild trust among working families.
Historically, Colorado voters have embraced fiscal conservatism, emphasizing limited government spending and individual empowerment. The Taxpayer’s Bill of Rights (TABOR), passed in 1992, exemplifies this ethos. By requiring voter approval for tax increases, TABOR has safeguarded against unchecked government spending and resonated with residents during times of economic uncertainty.
Bold reforms rooted in economic freedom can reignite voter desires for sound economic policy while bolstering the sluggish economy. For Colorado, the key to prosperity lies in policies that prioritize opportunity and innovation. By fostering an environment where families thrive and businesses grow, the state can reclaim its status as a thriving economic hub and a destination for those seeking success, big dreams, and a high quality of life. A renewed commitment to these principles will ensure Colorado’s strength and prosperity for generations to come.
Bobbie Daniel is a Mesa County commissioner.
Editor’s note: Opinions expressed in commentary pieces are those of the author and do not necessarily reflect the opinions of the management of the Rocky Mountain Voice, but even so we support the constitutional right of the author to express those opinions.