Louisiana’s Future Depends on Capitalism, Not More Government

Originally published on Pelican Institute.

Gallup’s latest poll shows that only 54% of Americans now view capitalism positively, the lowest in 15 years of measurement. Even more alarming, two-thirds of Democrats favor socialism over capitalism. That drift is dangerous—because capitalism, when actually practiced, is the only system that has ever lifted billions of people out of extreme poverty.

For Louisiana, this is not an abstract debate. It already ranks near the bottom on too many measures of opportunity. 
Over the past decade, Louisiana lost 120,000 residents to other states. Families are voting with their feet against high taxes and insurance costs, the lack of education options, Huey Long politics, and a general lack of opportunity that leads to high government dependency. That’s precisely what happens when leaders choose cronyism and central planning instead of free enterprise.

The state budget is a prime example. Lawmakers are quick to spend every new dollar when revenues climb—loading up on pet projects and earmarks instead of focusing on pro-growth tax reform. Even when revenues exceeded expectations this year, most of the “extra” went to one-time grants, museums, and local pork, while thousands of families on waiting lists for the LA GATOR K-12 education scholarship were left behind. That’s not capitalism; it’s favoritism.

Cronyism has long been Louisiana’s economic disease. From Hollywood subsidies to industrial giveaways, state leaders have repeatedly tried to “buy” jobs with taxpayer dollars. Yet the record is clear: these deals cost more than they create, and they leave small businesses—the real backbone of our economy—paying the price. 

Gallup’s numbers tell the story nationally: Americans love small business (95% favorable) but distrust big business (37%). Why? Because too often, “big business” is where government meddles most.

True capitalism is different. It’s about profits and losses guiding progress. If a company serves customers well, it earns the right to grow. If it fails, resources shift elsewhere. When the government bails out failure or props up politically favored industries, it breaks that cycle. The result is wasted money, fewer opportunities, and more cynicism.

The lesson from Econ 101 is timeless: government spending doesn’t add to the economy—it only redistributes resources. In Louisiana, every dollar steered into a subsidy or pork project is a dollar not left with families to save, spend, or invest. Worse, these choices drive more people out of the state, leaving behind fewer taxpayers to cover the bill.

Louisiana has recently taken positive steps to reduce tax giveaways, increase scrutiny of funding for non-governmental organizations, and reduce spending; however, more needs to be done. As federal funds fade away and other states pursue bold reforms to increase their competitiveness, Louisiana has a choice. It can keep repeating the mistakes of the past—chasing Hollywood deals, inflating budgets, and creating dependency—or it can finally commit to real capitalism that yields significant improvements for its people. That means cutting red tape, lowering taxes even more (with a path to zero individual income tax, like its neighbor to the east), making education freedom a reality for all, and letting entrepreneurs drive growth.

Gallup’s polling shows the image of capitalism is slipping nationwide as more people are deceived by socialism’s thinly veiled, empty promises. Louisiana should be leading the charge to restore it through action. After all, Louisianans want opportunity. They want freedom. They want the dignity of work and the chance to build a better life.

That’s what capitalism offers. If Louisiana embraces it, we can stop the outmigration, grow our economy, and give families a reason to stay. If not, we’ll keep watching our neighbors leave for Texas, Florida, and Tennessee—states that still understand the power of free markets.
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Because at the end of the day, capitalism isn’t just an economic system. It helps provide pathways for you to reach your American Dream. And Louisiana desperately needs more of it.