Larry Pogemiller has thrown more than a couple hissy fits over Gov. Pawlenty’s economic policies. In all the time that I’ve been watching, I’ve yet to hear him articulate a plan on what a Pogemiller economic plan would look like, though I suspect that it’d start with raising taxes and spending more money on education.
According to this post from the Strib’s Pat Doyle, Sen. Pogemiller still doesn’t have a plan:
So what should McElroy’s Department of Employment and Economic Development be doing that it’s not?
“Create jobs,” Pogemiller said.
Government efforts to create jobs have had limited positive impact.
The program McElroy oversees, called JOBZ, has been criticized by the Legislature Auditor and others for giving tax breaks where they aren’t needed while overstating what it has accomplished and understating the cost.
But it doesn’t appear that DFLers have been more successful at the economic development game. The Iron Range Resources and Rehabilitation Board, a pet project of former Gov. Rudy Perpich, spent millions over the years on projects like the Iron World museum and Giant’s Ridge ski resort that produced a small number of mostly low-paying jobs.
It remains to be seen if current DFL leaders can come up with a plan that succeeds where others have failed.
Here’s the sentence that stands out from that post:
Government efforts to create jobs have had limited positive impact.
It isn’t surprising that government isn’t proficient at creating long-lasting, high-paying private sector jobs. Governments can’t create private sector manufacturing or service industry jobs. Entrepreneurs are the only people that create those types of jobs. To expect anything less is foolish.
Incredibly, the DFL’s jobs bills have relied heavily on government spending. It isn’t surprising that Minnesota’s economy has lagged the last decade. Couple their reliance on government spending to create jobs and their excessive (some say obsessive) reliance on “the rich” on “paying their fair share” and you’ve got a recipe for disaster.
The DFL has talked about the need for an efficient transportation system and a great education system. I don’t disagree that they’re important components of a vibrant economy. There isn’t a conservative in Minnesota that’d disagree with that. Where conservatives part ways with the DFL is that the DFL thinks that’s a great economic plan. It clearly isn’t.
If regulations and tax burdens are too high, there won’t be enough entrepreneurial activity at the end of the road or enough businesses to supply jobs when people graduate from Minnesota’s schools. We’ve seen taxes cost Minnesota some high-paying jobs:
Jeff Williams, the company’s CEO and founder, said VitalMedix’s relocation will enable it to benefit from Wisconsin’s friendlier business climate, including its tax investment credits law that encourage financial support from so-called angel investors.
“The investment climate (in Wisconsin) for small (biotech) companies like ours is more favorable” than Minnesota’s, said Williams, previously CEO-in-residence of the Venture Center at the University of Minnesota. “Right now, it is more difficult to raise money in the Twin Cities for small companies.”
VitalMedix left for Wisconsin because Minnesota’s tax laws made it difficult to raise capital. The DFL defeated Rep. Keith Downey’s bill that would’ve started an angel investment tax credit in Minnesota’s tax code. That simple change could’ve prevented high-paying jobs from leaving Minnesota and landing in Wisconsin. Rep. Ann Lenczewski, the DFL chair of the House Taxes Committee, spoke out against Rep. Downey’s bill.
It also doesn’t help that the DFL’s spending habits are as irresponsible as they are. Businesses that think spending increases are inevitable also think that tax increases can’t be far around the corner. Setting the right priorities and saying no to the special interests is the only way to get spending and taxes under control.
The minute entrepreneurs don’t have to worry about the DFL legislature’s irresponsible spending habits is the minute Minnesota’s entrepreneurs will start investing and growing high-paying, permanent, jobs.
Technorati: Job Growth, Entrepreneurship, Taxes, Regulations, Spending, Fiscal Restraint, Education, Transportation, VitalMedix, Larry Pogemiller, Ann Lenczewski, DFL, Tim Pawlenty, MNGOP
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Proud C.C. Contributing Editor
The most basic fallacy of liberals is to assume that the government has all the money, and that spending it is the only economic activity that can occur, when in fact the only money government has it must first take from somebody, thereby decreasing economic activity. Depending on what the money is spent on, the best government can do is to “break even” with what private enterprise would have done with the money, had it been left in their hands.
Comment by J. Ewing • 04Dec2009 @ 7:38 am
[...] The bill hasn’t added permanent jobs in forever. I quoted the STrib’s Pat Doyle in this post as saying this: So what should McElroy’s Department of Employment and Economic Development be [...]
Pingback by Let Freedom Ring » Blog Archive » Forget the Bonding Bill, Fix the Economy • 06Dec2009 @ 8:44 am