Envisioning the Perfect Economy: From America’s Founding to Hastings’ Future
Hastings' story shows us that teamwork and community are key to true success. By combining these lessons, we can keep building a strong local economy that blends past wisdom with modern ideas.
In the late 18th century, America’s founders sparred over what a prosperous economy should look like. Alexander Hamilton championed industry, banks, and even protective tariffs for the young nation’s budding manufacturers minneapolisfed.org, while Thomas Jefferson extolled an agrarian ideal, viewing farmers as the backbone of honesty and worrying that bankers and industrialists might corrupt the republic minneapolisfed.org. Their debates may seem distant, but they echo loudly today – even here in Hastings, Minnesota. Fast forward to 2025, and we find ourselves asking similar questions at national, state, and local levels: What does a “perfect economy” look like, and how do decisions from Washington, St. Paul, and City Hall trickle down to our Main Street? In this post, we journey from America’s founding economic philosophy to present-day Hastings, exploring federal trade moves, Minnesota’s fiscal strategy, and our own community initiatives. Along the way, we’ll hear insights from local business owners and leaders, grounding big ideas in the voices of our neighbors. The goal is simple: make complex economic topics accessible, relevant, and primed for meaningful dialogue about Hastings’ future.
A National Vision: From Founding Ideals to Modern Challenges
More than two centuries ago, the United States was essentially a start-up nation, experimenting with economic ideas. Hamilton and Jefferson’s dueling visions – centralized finance and trade versus decentralized agrarian freedom – laid the groundwork for America’s economic philosophy. In fact, many current issues trace back to those roots. The Federal Reserve Bank of Minneapolis notes that those early arguments “may seem arcane and remote, but their opposing viewpoints can be seen in many contemporary issues” minneapolisfed.org. One example? The tension between free trade and protective tariffs.
In recent years, that age-old debate has resurfaced through federal tariffs. Both the Trump and Biden administrations, despite differing politics, have embraced tariffs on foreign goods (especially from China) as a tool to protect American industries npr.org. President Joe Biden’s 2024 tariffs on Chinese electric vehicles, solar panels, steel and more – some as high as 100% – continue the tough-on-China trade stance started by his predecessor npr.orgnpr.org. The rationale is patriotic: save American factories and jobs from unfair foreign competition. But do tariffs live up to that promise? Economists suggest the picture is mixed. One Brookings Institution analysis found that these tariffs led to net job losses (estimated between 140,000 and 275,000 nationwide) and higher costs for consumers npr.org. Put simply, a tariff is a tax on imports, and those costs often get passed to all of us in the form of pricier goods at the store npr.orgnpr.org.
Importantly, what happens in Washington doesn’t stay in Washington – it hits home in places like Hastings. Minnesota companies and consumers have felt the ripple effects of the trade war and tariff policies. For instance, one Eden Prairie business expecting a $18,000 duty on a routine shipment from China got a rude surprise: thanks to tariff hikes, the bill surged to $170,000 startribune.com. Costs like that can force a business to raise prices, freeze hiring, or worse. Farmers, too, have been on the frontlines of tariff battles. “Soybeans are Minnesota’s top ag export – about 60% of our crop is sent to international markets,” notes Darin Johnson, president of the Minnesota Soybean Growers Association mnsoybean.org. When China slapped retaliatory tariffs on U.S. soybeans during the trade war, it struck at decades-long trading relationships. Johnson warned in 2025 that undermining those partnerships would be “devastating to not just farmer profitability, but rural and urban communities across Minnesota… we’ve already seen that no one wins in a trade war” mnsoybean.org. Indeed, during the 2018 tariff escalation, U.S. agriculture endured over $27 billion in losses, with soybeans comprising the majority of that hit mnsoybean.org. Here in Hastings – surrounded by farmland and reliant on a mix of manufacturing and retail – such impacts aren’t abstract. When commodity prices fall or input costs rise, local businesses feel the squeeze and family pocketbooks tighten.
So, what might a “perfect” national economy look like from our Hastings vantage point? Perhaps it’s one that finds a sweet spot between Hamiltonian and Jeffersonian ideals: fostering innovation, industry, and fair trade while keeping opportunity widespread and shielding ordinary people from economic shocks. It might mean trade policies that defend local jobs without sparking retaliatory wars that hurt our farmers and small manufacturers. It could mean remembering that tariffs are a double-edged sword – they can protect a factory job, but they can also act like a tax on a Hastings shopkeeper who suddenly pays more for inventory. In an ideal scenario, national leaders would work collaboratively with trading partners to address unfair practices before resorting to tariffs, as groups like the American Soybean Association have urged mnsoybean.org. A perfect economy at the national level isn’t about isolation or unchecked globalization; it’s about fairness and stability. For Hastings residents, that translates to predictably priced goods, steady markets for our region’s exports (from crops to medical devices), and confidence that big-picture economic policies truly have Main Street’s back.
Minnesota’s Economic Strategy: Balancing Taxes, Growth, and Fairness
Zooming in from the national picture, we find Minnesota carving its own bold path on the economy. Every state has different ideas of “perfect” economic policy – and Minnesota tends to favor an active, community-centered approach. In fact, Minnesota stands out nationally for its moderately progressive tax code, meaning it asks a bit more from the wealthy than from low- or middle-income families itep.org. This isn’t just talk; recent policy moves back it up. In 2023, Governor Tim Walz and the state legislature enacted a sweeping tax-and-investment package aimed at what one might call inclusive growth.
A marquee element of that package was a new Child Tax Credit designed to support working families. Analysts projected this credit would slash child poverty by one-third in Minnesota itep.org – a staggering impact. The logic is simple: when parents have a bit more disposable income (or a larger tax refund), they spend it on necessities and their kids’ well-being, which circulates money back into local economies like Hastings’. Alongside that, Minnesota expanded tax exemptions for Social Security benefits (finally relieving many seniors of state tax on their Social Security income) and even ensured forgiven student loans wouldn’t be taxed as income itep.org. These moves were celebrated by many as making the tax system more humane and family-friendly. “Our analysis shows that taxes on working-class families declined markedly... while taxes on high-income people went up slightly” in recent years, reports the Institute on Taxation and Economic Policy itep.org. In other words, Minnesota has been actively trying to ease the load on those who may be one paycheck away from hardship, shifting a bit more responsibility to those with the broadest shoulders.
Of course, nothing in economics is free – those tax cuts and credits come with a price tag. Minnesota’s approach was to fund them by increasing taxes on top earners and profitable corporations (a move consistent with the state’s progressive philosophy). For example, capital gains and dividend earnings above $1 million now face an additional 1% surtax itep.org. Some tax deductions that primarily benefited high-income filers were pared back itep.org. Minnesota even decided to capture more revenue from multinational companies by taxing certain global profits that often escaped state tax before taxfoundation.org. These choices made Minnesota an outlier – at a time when 28 other states have been busy cutting income or corporate taxes, Minnesota bucked the trend by raising some taxfoundation.orgtaxfoundation.org. It’s a bold gamble on the idea that investing in people yields long-term dividends. As a result, Minnesota now has one of the highest corporate tax rates in the nation at 9.8% nfib.com, and it became the only state to impose a special surtax on massive investment earnings taxfoundation.org. Critics worry such taxes could deter big businesses or drive rich retirees to Florida. Supporters counter that robust public investment – in education, healthcare, infrastructure, and quality of life – makes Minnesota attractive and competitive in a different way. After all, a perfect state economy isn’t just measured by low tax rates; many would say it’s measured by outcomes like low poverty, high median income, good schools, and vibrant communities.
How do these state moves play out on the ground in Hastings? In practical terms, some Hastings families have already felt relief from the 2023 changes – a number of parents received child tax rebate checks last year and will benefit from a child credit at tax time, which means more money to spend at local grocery stores, shops, and restaurants. Many of our retired neighbors saw their state income taxes drop thanks to the new Social Security exemption itep.org, which might free up extra cash to support local charities or grandchildren’s college funds. At the same time, Hastings’ entrepreneurs and professionals are aware of the other side: high income and business taxes. A small business owner here who finally “makes it big” could find themselves in Minnesota’s top income bracket (10.25% state income tax, plus that new investment surtax if they sell their company). Our community banks and manufacturers navigate compliance with Minnesota’s unique worldwide income tax rules, which add complexity and cost.
Yet, evidence suggests Minnesota’s formula can work. The state’s unemployment rate is often among the lowest in the country, and our quality-of-life metrics are consistently high. State economists note that despite higher taxes, Minnesota has outperformed many low-tax states in measures like median household income and GDP per capita itep.org itep.org. The idea of a “perfect economy” at the state level might just look like what Minnesota has been striving for: broad prosperity. That means ensuring the gains of growth are widely shared, not concentrated. It means investing tax dollars in ways that directly come back to communities. For Hastings, that might translate to grants for our local schools, funding for highways like Highway 61 and transit that connect us to the Twin Cities, or programs that help our small businesses get easier access to capital. Just this year, for example, Minnesota launched initiatives for entrepreneurship training and small business assistance – opportunities that Hastings entrepreneurs can tap into.
In a nutshell, Minnesota’s approach illustrates a key point: a thriving economy isn’t only about the total size of the pie, but how it’s sliced. By prioritizing fairness and future-forward investments (like the next generation via child credits), the state seeks a kind of economic perfection where no one is left behind. Time will tell if this strategy draws more people and innovation into Minnesota or if it faces pushback. For now, Hastings residents can observe firsthand the effects of these policies and weigh in – through our votes and voices – on whether this feels like the right path to prosperity.
Local Action in Hastings: Community-Driven Growth on Main Street
Finally, we arrive at the local level – right here in Hastings – where the abstract ideas of economics meet the concrete reality of daily life. For many of us, this is where the economy feels most personal: the shops and restaurants we visit, the jobs we hold, the city decisions that shape our streets and services. A “perfect economy” in Hastings might be thought of as one where businesses are thriving, neighbors are employed in fulfilling work, the downtown is lively, and the city budget is strong yet responsive to community needs. Lofty as that sounds, Hastings is actively taking steps toward that vision.
One crucial player is the City of Hastings itself, especially through the Hastings Economic Development and Redevelopment Authority (HEDRA). HEDRA is a seven-member board (including community members and city councilors) that guides local economic strategy hastingsmn.gov. What does that mean in practice? It means facilitating projects, offering incentives, and smoothing the way for businesses to start, grow, and stay here. For example, the city offers tools like façade improvement grants, low-interest loans, and technical assistance to local entrepreneurs hastingsnow.com. These resources help refresh the look of our historic downtown buildings, support mom-and-pop shops in expanding, and encourage new ventures to fill vacant spaces. City staff also partner with the Hastings Area Chamber of Commerce on business retention visits – essentially checking in with local companies to understand their needs and address concerns hastingsmn.org. The underlying philosophy is clear: when local businesses succeed, the whole community wins. Our small city government strives to be nimble and supportive, cutting red tape where possible and even marketing Hastings to outside investors who might bring in new jobs hastingsmn.org.
The Confluence development (shown above along the Mississippi River in Hastings) transformed a 114-year-old factory into a hotel, event center, apartments, and public space – a key investment in the city’s economic future finance-commerce.com. City leaders partnered with private developers over years to turn this once-idle industrial site into a vibrant riverfront asset. The city’s former mayor, Paul Hicks, called the location a “unique piece of property... you just don’t come across those opportunities every day” finance-commerce.com, reflecting the community’s pride in seeing a long-planned project come to life.
Another example of proactive local initiative is the recent revitalization of Hastings’ riverfront. For decades, an old 100,000-square-foot factory (the Hudson Manufacturing plant) sat vacant by the Mississippi, a rusty reminder of Hastings’ industrial past. Rather than let it crumble, the city bought the site in 2010 and sought developers to bring new life to that prime riverfront real estate finance-commerce.com. It was a bold move – essentially betting public funds on future payoffs. And it paid off. After environmental clean-up and careful planning, the site reopened in 2023 as The Confluence, featuring a 77-room boutique hotel, an event center for weddings and conferences, 18 new apartments, a restaurant, office space, and even a new riverfront park and trail expansion finance-commerce.com. This project not only created jobs (hotel staff, restaurant workers, maintenance crews) but also expanded the tax base and gave all residents a beautiful new public space by the water. It’s the kind of win-win redevelopment that cities dream of. The fact that Hastings pulled it off is a testament to long-term thinking. As former Mayor Hicks noted during the planning phase, opportunities like this don’t come around often finance-commerce.com – and Hastings seized it. The Confluence has quickly become a point of local pride: it marries economic gain (private investment and tourism dollars) with quality of life (a scenic spot to gather). In a perfect local economy, that’s exactly the balance you want.
Beyond bricks-and-mortar projects and city programs, the true heartbeat of Hastings’ economy is our people – the entrepreneurs, workers, and consumers who interact every day. One thing you’ll hear often is that Hastings has a strong sense of community in its commerce. Businesses here aren’t just transactions; they’re relationships. A great example comes from the story of Lock & Dam Eatery, a beloved downtown restaurant that recently celebrated its 10th anniversary with a block party. Mayor Mary Fasbender shared during the festivities that she and her husband go there “almost every Thursday for date night… It’s homey, and you always run into someone you know. It’s hard to come here if you’re looking to be alone – it’s a place full of friends” hastingsnow.com. That sentiment speaks volumes: local establishments become social hubs in a town like ours. Jen Fox, co-owner of Spiral Brewery (another successful Hastings business), put it this way at the same event: “It’s a third place for Hastings… [the owners] have built a community space – a place outside of work and home that brings people together. We’re so lucky to have them here.” hastingsnow.com In other words, thriving businesses in Hastings double as community centers. They host our celebrations, hear our stories, and often support local causes. This human connection might be the most important ingredient in a perfect local economy. After all, economic flourishing isn’t just about dollars – it’s about quality of life and a sense of belonging.
So, what are some of the local initiatives and policies helping to cultivate this kind of environment? We’ve mentioned a few: HEDRA’s grants and loans, the riverfront development, the Chamber’s business retention efforts. Additionally, Hastings has been investing in infrastructure and quality-of-life projects that underpin economic health. The new 2024–2027 Hastings Strategic Plan adopted by City Council focuses on priorities like financial resilience and responsive community development hastingsmn.gov. That includes maintaining strong city finances (so we can keep property taxes reasonable and invest in needed services), as well as updating infrastructure – from streets and utilities to broadband – to support residents and businesses alike. The city has also shown support for workforce development; for instance, partnerships with Dakota County technical programs and Hastings High School’s vocational training help ensure our local workforce has the skills that local employers need. Even cultural initiatives, like the new Arts & Culture Commission and events like Rivertown Days, play a role by making Hastings an attractive place to live and visit, which in turn boosts spending at local businesses. In a small city, everything is interconnected: a concert in the park or a new bike trail might not scream “economics,” but they enrich the community, draw crowds, and thus have economic ripple effects.
As we consider a “perfect” Hastings economy, it might include vibrant small businesses, well-paying local jobs, affordable housing, and engaged citizens. It’s a place where entrepreneurs feel supported by their city and neighbors; where families can spend a fun day downtown without breaking the bank; where young people see a future for themselves, and seniors feel secure. It’s ambitious, but not unreachable – especially if we continue the collaborative spirit that’s evident in our community. Hastings has a long tradition of public-private cooperation (as seen in projects like The Confluence and events like the Local Marketplace initiative that HastingsNow.com spearheads to promote local artisans). When local government, businesses, nonprofits, and residents all work hand-in-hand, the economic multiplier effect is incredible.
Building a Flourishing Future: Key Ingredients and Next Steps
We’ve traveled from the halls of the U.S. Treasury in Hamilton’s era to the dining rooms of Hastings restaurants in ours. What have we learned about the “perfect economy” along the way? A few key ingredients stand out:
Fair and Smart National Policies: A perfect economy requires stable trade relationships and policies that protect workers without unnecessary collateral damage. Fair trade agreements, targeted support for key industries, and avoiding counterproductive trade wars (as our soybean farmers warned) are crucial mnsoybean.org. In essence, national economic strength should translate into confidence for small communities – we want to know that international moves will help, not hurt, Hastings.
Inclusive Growth at the State Level: Minnesota’s approach highlights the value of investing in people. From child tax credits that lift up families itep.org to progressive taxes that fund education and infrastructure, the goal is broad-based prosperity. The perfect state economy finds balance: encouraging business growth while also ensuring that growth benefits everyone (urban and rural, big cities and small towns). For Hastings, that means state support for things like roads, broadband, and parks, as well as programs that directly touch our lives (schools, healthcare, workforce training).
Empowered Local Communities: At the city level, the economy thrives on local leadership and engagement. Hastings shows that having an active economic development authority, a supportive Chamber of Commerce, and forward-thinking city officials can make a big difference. Proactive redevelopment, like turning an old factory into a community asset finance-commerce.com, and nurturing a strong shop-local culture build resilience. Equally important are the intangible qualities – the friendly faces, the feeling that “everyone is family” at our local establishments, and the willingness of neighbors to invest in neighbors. A perfect local economy is one where community members feel they have a stake and a voice in economic decisions.
As Hastings residents, we each have a role to play in this vision. It could be as simple as choosing to buy local, volunteering on a city task force, mentoring a young entrepreneur, or attending public meetings to voice your ideas on economic development. Our city’s motto could well be “Building deep relationships, empowering local voices” – principles that HastingsNow and other community groups champion every day. By staying informed about things like tariffs or state tax changes, we can better advocate for our community’s interests. By sharing our experiences – like a shop owner explaining how a policy affects her business or a consumer explaining how far their paycheck goes – we add that human voice that keeps economics from becoming sterile.
Finally, let’s remember that the economy isn’t an abstract machine; it’s all of us. When it works well, it’s because we’ve tuned it together. The story of America’s founding economic philosophy teaches us that debate and diversity of thought can yield strong outcomes. The story of Hastings teaches us that cooperation and community spirit are the bedrock of real prosperity. Merging those lessons, we can continue writing the story of a flourishing local economy here – one where history’s wisdom and today’s innovation meet.
What do you think, Hastings? The conversation about our economic future is just getting started. Whether over a cup of coffee at our favorite café or at the next City Council meeting, your ideas matter. By talking and working together, we inch closer to that “perfect economy” vision – an economy that truly works for everyone in our hometown. Let’s keep this dialogue going and make sure Hastings’ voice is heard in shaping the bright economic future we all deserve.
