Wyrich is a longtime Professor of economics at Missouri State University.

Nixon's Biggest Challenge:  "Economic weakness, chiefly in Kansas City and St. Louis, are the Governor's biggest challenge. This is a particularly difficult problem, in as much as state governments have few policy tools to stimulate the economy.  Therefore, most focus on trying to attract business investment from other states or nations.  However, this is a negative-sum game, in as much as states dissipate resources trying to attract businesses from each other.  The resources expended seldom create new economic activity, but simply move it from somewhere else to here.  That feels good if we're the recipient, but at the same time some other state is spending money to attract a Missouri company to their state.  A positive-sum game is one where resources are used to create value rather than simply moving it around. Wealth is created if the State devotes effort/money to making Missouri workers more productive (e.g., education) or removing hurdles that prevent Missouri companies from undertaking profitable investments."

Top Issues of Concern:  "In recent years, most states (esp. Missouri) have taken resources out of education (esp. higher education), which has caused tuition at Missouri colleges to rise at an above-average rate (%).  The result?  Too many young Missourians go to college in other states, then four years later settle down in those other states . . . leaving the Missouri economy forever.  To save (say) $3,000 per student for four years, we drive young and highly educated workers to other states for their entire careers.  Given the state's income tax rate of 6% and the average sales tax rate (state portion) of 3%, the entire cost of increasing the subsidy to higher education by $3000 per student (per year) could be recovered in only about four years after graduation."

Advice For Nixon:  "I propose a state "loan" program of $3000 per college student (up to four years) on top of existing spending on higher education.  The loan would be forgiven at the rate of 20% per year the individual remains in Missouri after leaving school -- whether they graduate or not.  If the student leaves Missouri after graduating/dropping out, they would immediately begin repaying the loan (at a reasonable interest rate such as 3%). To make sure the money is recovered, the student's parents would need to co-sign the loan.  In addition to this recommendation, the governor should appoint a committee of economic advisors that would meet periodically and review existing policies and policy proposals for their growth-enhancing (or -retarding) impacts.  Finally, the governor should work with other governors to lobby Washington for Federal aid to help our economy through the current recession, which is likely to continue for another year or so.  Substantial investments in infrastructure would be welcome at this time, inasmuch as they would stimulate the economy and address longstanding needs.  Currently, the US Dept of Transportation is planning to cut highway aid to Missouri and other states, and this policy should be immediately reversed."