As noted by James Rowen of The Political Environment, the American Economic Development Institute (http://aedi.us/about-us/) and Pollina Corporate Real Estate, Inc. (http://pollina.com/), have expanded the release of their research findings to include the Ten Worst States for Business. Among the Ten Worst States for Business is Scott Walker’s Wisconsin, which Gov. Walker infamously said in 2010 would be “Open For Business” if he were elected governor.
Just being Republican does not automatically grant you status as a pro-business guru. Of the bottom ten ranked states, three are run by Republicans including New Jersey Governor Chris Christie and Wisconsin’s Scott Walker, two darlings of their Party.
New Jersey ranks #47 but ranked #45 when Governor Christie took office in 2010. Wisconsin ranks #46 but ranked #44 when Governor Walker took office in 2011. Unemployment for New Jersey is 6.5 percent ranked a weak 32nd,, and Wisconsin has an unemployment rate of 5.8 percent ranked a more respectable 25th nationally.
Governors Christie and Walker have worked at containing cost, but a job creation strategy has eluded them.
Until jobs can be created along with the resulting tax revenue, cost containment will remain an unending journey without a pleasant destination. Job creation is dependent on the creation of a pro-business environment.
It’s important to note that while some of the states on the Ten Worst States for Business list have governments divided between the two parties Gov. Walker has managed to steer Wisconsin into ditch with the help of rubber-stamp Republican majorities in both the State Senate and the Assembly, so he can’t blame Democrats for his job creation and economic development failures.
Luigi Zingales describes in his book “A Capitalism for the People” how many people believe we live in a pro-market society where the agenda aims at encouraging the best business conditions for everyone. The reality is we live in a pro-business society where the agenda aims at maximizing the profits of existing firms. This occurs through public policy and legislation written to favor certain firms within each industry in return for political contributions, i.e. cronyism.
Wisconsin has a very toxic brand for business now. Start-up’s and companies looking to expand are steering clear. Not only are the investments not being made here that help attract a talented workforce, but they worry about being shaken down by the GOP and they see the eroded purchasing power of the state’s residents.
It is the Governor’s office that is open for business. pay to pay