WalletHub ranks South Dakota’s economy at 47th in the nation for good reason. We closed out 2024 with no growth.
When I saw financial information giant WalletHub’s economy rankings of U.S. states a couple of days ago I was taken aback by South Dakota’s poor showing. We’re ranked 47th. If you’re dubious about the results and curious about WalletHub’s calculations, you can check out WalletHub’s metrics and methodology and draw your own conclusions about the validity of the study.
You might also decide, as I did, to get some corroboration elsewhere, so I checked the Bureau of Economic Analysis Gross Domestic Product (GDP) report at the close of 2024. Sure enough, our economy was one of the weakest in the United States. You can see from the graphic above that our GDP growth for the 4th quarter, at 0.0%, wasn’t merely anemic, it was nonexistent. South Dakota fared badly both in comparison to the rest of the country and in comparison to our surrounding, contiguous neighbors.
Looking back over the past few years, I never was sold by the constant refrain coming out of the Kristi Noem administration about how great South Dakota’s economy was. Even as she was bragging on it last October, touting our state as “prosperous and free,” we were experiencing zero economic growth, per the BEA.
Noem also made her “Freedom Works” campaign a centerpiece of her economic growth agenda, but I can’t see where it has done much in the way of expanding South Dakota’s economy. In fact, in one important area, brain-drain, our state remains chronically stuck: A study done by the state of South Carolina, citing Census Bureau data, shows our state is the worst in the nation when it comes to losing college-educated residents. According to the data, in 2024, 72% more people with a college degree leave the state compared to those who moved in.
On another front, the fact that we have among the lowest paid teachers in the country, 48th to be exact, seems to me another element of our culture that reflects the static economic condition of South Dakota.
I hope candidates revving up for the 2026 election cycle will address the economic issues that are impelling so many of our most well-educated citizens to find better opportunities elsewhere, and I certainly hope that someone will do something about the awful salaries that our teachers get in this state.
John Tsitrian is a businessman and writer from the Black Hills. He was a weekly columnist for the Rapid City Journal for 20 years. His articles and commentary have also appeared in The Los Angeles Times, The Denver Post and The Omaha World-Herald. Tsitrian served in the Marines for three years (1966-69), including a 13-month tour of duty as a radioman in Vietnam. Republish with permission.
Graphic: Bureau of Economic Analysis
The South Dakota Standard is offered freely and is supported by our readers. We have no political or commercial sponsorship. If you'd like to help us continue our mission to advance independent political and social commentary, you can do so by clicking on the "Donate" button that's on the sidebar to your right.
