Assuming we can all agree that the main ingredient to the economic recipe of capitalism is low unemployment, a state in which people are working and spending their money which creates demand in the marketplace to be filled with increased supply thus more jobs to generate that supply, then let’s proceed on the grounds of how best to foster job creation.
Although the present reality is a state of elevating despair, in truth Delaware has a golden opportunity to once again usher in an era of economic expansion by doing the one thing that defines our capitalistic brand of economy. That one thing is trusting the marketplace to work.
Of course, government has a role in regulating industry and commerce because there truly is no “free” market. But, that role of regulation does not imply the additional role of manipulation which has become the hallmark of the new normal. State governments all over the country are scrambling to plug the hole in the proverbial dam. For many it has become a panic situation as more and more hard working folks are finding themselves with no job at which to work hard. And the heretofore result of all the governmental dart throwing has been increased unemployment with a scarce few hopeful rays of light.
Perhaps a more productive approach would be to let the marketplace determine the direction of our economy instead of the government trying to promote certain sectors. So let’s see if we can apply that time tested logic to breaking the vicious cycle we find ourselves in. Furthermore in our thinking, let’s be quirky and give our idea a name. Maybe we should use an acronym. Oh, I don’t know…how about JOBS? It can stand for “Just Open Barriers to Success”.
What do I mean by opening barriers? Stated in the simplest form I can muster it means removing obstacles and clearing the road so businesses can truck along with as little interference as possible. In the end, the key to job creation is establishing an environment in which growing businesses want to expand, relocate or invest right here in our little state.
There are typically five interests to which those growing businesses pay attention when they consider where their expansion, relocation or investment will occur. These five are: Labor, Taxes, Regulation, Infrastructure and Quality of Life.
There is not enough space in this article to give each a fair shake as there are many facets to them, but I will give a brief airing. First, how can Delaware provide a more enticing labor market for prospective employers? The best answer to the question is passing a Right to Work law that eliminates mandatory union enrollment in closed shop environments. Allow each worker to decide whether they want to be in the union and give each business the opportunity to show its workforce how accommodating they can be when in competition with the union. This will lower the cost of doing business and open one barrier to success.
Second, we need to reverse the recent trend of increasing taxes. With acknowledgment that there was an insignificant reduction put into the current budget, the real pill would be a return to pre-2008 levels for both personal and corporate taxes and an elimination of the estate tax. Delaware is losing its standing as having a business friendly tax environment and that will be detrimental in due course. Currently this is one more barrier that needs opened.
Third, it is imperative that we cease and desist applying further levels of regulation on businesses as this increases costs and has the reverse effect on both the bottom line and employment. We can argue about current regulations later; for now stop adding new ones. The business community can and will adapt to whatever is before them but does not like the uncertainty of not knowing what else is coming down the pike.
Now the fourth interest is where government can shine. We do need improved infrastructure and state of the art innovation in providing companies with access to markets. This can be in the form of actual physical access through roads; but also exists as intangible access through trade agreements and appealing incentives to potential out of state authorities and consumers. Another important aspect of infrastructure is high functioning Police and Fire Departments and EMS services. Properly funding these services and providing access to markets is where our state government should be exerting its largest amount of energy and resources.
Last, but by no means least, is Quality of Life. The two most important items here are Healthcare and Education. Let me just say this about education, as it is near and dear to my heart having four children currently in the public school system. The first step to improving our educational game and climbing to the top of the ladder is opening the classrooms to the innovation of each individual teacher. Let the classroom be an incubator of ideas on how to best instruct and motivate children to learn. Companies who are looking to expand or relocate here in Delaware truly care about the quality of education its future workforce is receiving. And I personally believe our teachers are more than capable of blowing us away with their ideas.
Shaun Fink
Millsboro, DE
Shade Tree Economist and Professional in the Insurance and Financial Services Industry
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