An Uncertain Wisconsin Means an Uncertain Future

Gov. Scott Walker has received a lot of negative press about his latest jobs numbers.  For the 5th straight month, they are down.  Although unemployment continues to drop in Wisconsin and the outlook for 2012 is good, the second half of 2011 sticks out like a sore thumb.  Especially when he promised to create 250K jobs in his first term.  It is unrealistic that he would not get this done his first year and there are a few issues that are currently working against him in the long term.

First, the international economic outlook is still bleak.  With Europe in an almost tail spin, no one is sure how it will affect the economy here in the United States.  We wait to see how Greece corrects itself and then we wait to see if Italy and Spain can do the same.  If the recent riots in Greece are any indication as to how the austerity measures (that must be taken) will be received, we could be in for bumpy road.

Second, the US economy is no juggernaut itself.  Recent unemployment data was encouraging.  Unfortunately, GDP is not near where it needs to be to be successful, the housing market is still in the toilet and retailers don’t appear to be too excited about the turnout for this Christmas sales season.  Aside from the areas of concern today, we have a couple of events that in the future could have a huge impact on the performance of the economy.  In January 2013, the Bush tax cuts are set to end taking money from businesses and paychecks; all the while the congress cannot come to terms with whether or not to extend the payroll tax cut set to expire this month.  Furthermore, the one that has most businesses holding their pocket books is the implementation of Obamacare.  The business man waiting to see how badly it will affect the bottom line.

Third, in Wisconsin, we have been in a perpetual state of election since Walker took office in 2010.  This does not give a business owner comfort as they plan for the future and attempt to build their business.  Not knowing whose legislation will be implemented means budgeting becomes almost impossible.  The recallers want to reinstate the lavish benefit system and union control of teacher compensation that existed prior to Walker.  This means an eventual increase in tax, a tax that must be budgeted for by business.

Fourth, when jobs can be created, the government has in place miles of red tape and permit procedures that work against true job growth.  The mines in northern Wisconsin would employ thousands of people for years to come.  This doesn’t include the surrounding towns that will expand as a result.  All of which is being held up by red tape.  On a national scale, we could start building a pipeline form Canada to the Gulf Coast that would carry Canadian oil to the refineries.  Obama has decided not to decide on this project until after the 2012 election, at least one year away.  By that time, Canada may have found another buyer for the oil.  Leaving the US shipping oil from other countries and losing any jobs that would have been created.

Ultimately, Wisconsin’s future will be decided by a couple of things.  The recallers trying to distract Wisconsinites with their petty, childish recall; the longer state business will be hesitant to grow.  It lies with those trying to block the mine opening in North Wisconsin, an area that thrives on tourism and has been hit hard by the recession.  The responsibility lies on the government to get out of the way of business and innovation so the American people can produce with out the heavy hand of government on their shoulders.

Uncertainty has and will always be a cautious road for business.  We can’t control the international economy.  However, domestically the choice is easy.  In order to grow our economy, we need to be pro-business.  That means getting rid of an anti-business president and blocking the recallers from returning Wisconsin to a party that watched business leave during the last decade when the economy was good.