[Meg Tuszynski & Matthew D. Mitchell] Best response to economic shocks

The big forces bearing down on state economies in 2026 — trade uncertainty, stubborn inflation, swelling national debt, rippling AI disruptions — mostly emanate from Washington and boardrooms, not state capitols.

No governor sets tariff schedules.

None votes on the federal budget, steers interest rates or decides how tech reshuffles local labor markets.

Yet states aren’t powerless.

They don’t control shocks, but they can build shock absorbers.

The latest research shows how economic freedom allow ...