Democrats on Job Creation By Mike Huebsch

Democrats’ Jobs Agenda: “Ummmmm…”

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By Mike Huebsch - Posted on 04 September 2009

When the state Assembly reconvenes in two weeks, its top priority will be jobs, according to Democrats who control the chamber. But, to borrow a phrase from former New York Governor Mario Cuomo, they have no plans and no plans to plan.

Democrat leaders have not developed a job creation agenda or even identified specific ways to keep the jobs we have and bring new ones to Wisconsin. Yet, according to media reports, Democrats promise that their efforts will be “aggressive.”

Democrats talk vaguely of green jobs and say easing regulations for the siting of wind farms will bring them to Wisconsin. That was the sum total of the proactive jobs agenda presented to reporters last week (Republicans staffers were asked to leave the room before the briefing began).

Assembly Democrats also told reporters that tax credits they already enacted will create jobs. Should we take this to signal that when it comes to the economy, they think their work here is done? Truthfully, with their distorted idea of economic development, we may all be better off if it is. The aforementioned tax credits were included in the 2009 state budget that taxed more, borrowed more and spent more than any budget in state history.

Governor Doyle and Democrat lawmakers paired $53 million of narrowly focused tax credits with $3.1 billion of state tax and fee hikes and a host of new regulations that make it more expensive and more difficult to do business in Wisconsin.

In the eight months since taking control of Madison and Washington, D.C., Democrats have demonstrated a fundamental lack of knowledge of the economy, how jobs are created and retained and how wealth is created in this country.

In a July E-Update I highlighted a report by two respected business leaders (Wisconsin Flunks its Economics Test) showing that mistakes compounded over the last several years, and not the national recession alone, are at the root of Wisconsin’s current economic crisis.

Since November, the Madison Democrats’ free reign over the Capitol has been marked with even more mistakes. Increasing the income tax rate and capital gains tax and establishing combined reporting alone means employers, small business owners and entrepreneurs will send Madison an additional $744 million over two years. That’s $744 million that employers can’t use to create new jobs, give raises, pay for healthcare and other benefits, expand operations or improve working conditions. Instead of fueling an economic recovery, three quarters of a billion dollars will pay for new government programs and more state workers.

Last spring, Gardner Denver chose to close its Sheboygan plant and move 280 jobs to Louisiana when offered $9 million for relocation expenses, among other incentives. Wisconsin scraped together a $2.5 million offer to keep the jobs here. Against the backdrop of unprecedented business tax hikes and anti-employer regulations, Wisconsin’s “incentive package” likely lacked credibility.

Democrats and editorial boards rationalized that the Gardner Denver jobs (and others Wisconsin has lost) were too expensive to keep and that we shouldn’t stoop to the type of taxpayer-funded bribery used by other states.

Wisconsin’s unemployment rate is at 8.7 percent and we’ve lost nearly 140,000 jobs since the recession began. If there is a way to turn this around without competing on the same playing field as other states, Democrats have yet to unveil what it is. If Wisconsin doesn’t quickly rehabilitate its anti-business reputation, our families will suffer through a recession long after the rest of the country has rebounded.

Today, policy makers are anxiously awaiting the results of the third contract vote by Mercury Marine’s Fond du Lac workers. After union members rejected the contract offer more than a week ago, Governor Doyle announced that he offered the company incentives to scrap a move to Stillwater, Oklahoma. The governor refused to disclose details but said that, in exchange, Mercury Marine must create and retain 2,700 new jobs and stay in Fond du Lac for 12 years. If you believe financial incentives are nothing more than bribery, than these conditions amount to extortion. I think the governor misjudges the allure of Wisconsin as a place to do business if he believes these types of requirements amount to "incentives."

Earlier this year, Republican leaders established the Jobs NOW Task Force in an effort to incorporate the expertise and experience of employers into the state’s economic development initiatives. In June, the task force issued a report discussing the causes of Wisconsin’s flagging economy and recommending dozens of policy changes aimed at getting our state back on track. More than 150 business and community leaders from every corner of the state participated in task force roundtables and contributed to its recommendations.

If you ask me, if our state is going to pass reform this fall that has any hope of improving the economy, the solution will lie in the recommendations the businesses themselves are suggesting. Solutions will not be found by the bureaucracy consolidating more power and spending more money, then telling businesses it’s for their own good.

The Assembly Speaker told reporters that Democrats want to make sure businesses know “Wisconsin is open for business.” Just what that means is unclear, and if employers are skeptical that it’s anything more than lip service at this point, I can certainly see why.

The Speaker also said that successful businesses mean successful employees. If Democrats believe this, it’s time they start listening to the businesses leaders who can get our economy back on track.