Jobs, Jobs, Jobs!
In the 2010 campaign for Governor, Scott Walker made a foolish promise. Now, folks with more than two working brain cells know to take campaign promises with a grain of salt. However, by promising to create 250,000 new jobs, Walker gave the opposition, stinging from their rejection by the voters in the 2010 elections, a club with which to beat him about the head and shoulders. I think Walker depended on an overwhelming Republican legislature that would permit him to make massive changes in the Wisconsin business landscape, thus attracting new industry. He underestimated the resolve and pure anger of the opposition he would face from the Democrats.
He succeeded in acquiring some degree of oversight of state agencies by directive, but this was not nearly enough to change the perceived and actual negative business climate in this state. There is a tradition, from heaven knows where, for environmental activism, excessive taxation both personal and business, and bureaucratic regulation here that consistently places Wisconsin near the bottom of "business-friendly" ratings. Even though the environment has improved a bit under Walker, although he failed to repeal combined reporting that nailed Harley-Davidson for over $20 million in new taxes (he "tweaked" it to add some loopholes), everything is perception, even in the business world. Wisconsin has a reputation for high taxes, still largely earned, that discourages new business from moving or expanding here and makes it difficult to induce key employees from out of state to relocate to a rust belt "tax hell."
We are blessed in Wisconsin with a plethora of environmental organizations, from the Sierra Club to Clean Air/Water Wisconsin and a long list of others, who traditionally fight business expansion and industry-enhancing infrastructure changes like power transmission lines. Instead we build wind farms the mandated funding of which has pushed and continues to drive our electric rates from among the lowest in the nation to well above average. Just how many jobs do windmills built largely in Germany create? I'll wager a lot fewer than Tower Automotive, Allis-Chalmers, (most of) Briggs and Stratton and other industrial corporations that are now gone.
The latest example of enviromentalist-fueled anti-industry activism is the loss of the Gogobic-Taconite iron mine in northern Wisconsin due to near-universal opposition from environmental organizations, aided and abetted by pure Democrat political venom plus one RINO whose motivation eludes me, unless it's an obsession with his enhanced status thanks to vindictive recall elections that elevated him into a majority of one. Regardless, this is an example of politics at its stupidest, exceptional even for Wisconsin.
All Gogobic wanted, other than an absence of punitive tax-fees, was a clear end date for bureaucratic wrangling, a set date for a yea or nay to its proposal for an open-pit iron mine. At present, hearings and litigation, coupled with DNR sluggishness, can hold up a proposed mine indefinitely, an eventuality Gogobic was unwilling to accept. They couldn't get it by a 17-16 Senate vote, thanks to the newly-inflated Republican Senator Shultz. Of course, don't forget the 100% opposition by the Democratic minority. I can't believe that not one Democrat senator was philosophically sympathetic to this large job-creating enterprise in an economically depressed region of Wisconsin. No, what they were philosophically obsessed with was denying Governor Walker anything resembling a political victory. Thus went thousands of new jobs and tax revenue sacrificed on the altar of political expediency. Even the DNR was comfortable with the Republican-proposed bill and its environmental protections.
So, to all those pundits and others wondering why there's a jobs crisis in Wisconsin, notwithstanding our lower-than average unemployment figure, you need look no further than Wisconsin politics as usual coupled with an obsession for environmentalist extremism and the resulting industry-stifling regulation. This combination is toxic to industrial development, both perceptually and in actuality. I wouldn't want to start a business here either. In fact, I have heard that many small businesses are leaving our fine state, or planning to. Even Wisconsin icon Harley is making bye-bye noises.
Walker hasn't a prayer of making the 250,000, but it won't be for lack of trying. The cards are stacked.
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53 Comments
jman99 - Mar 10, 2012 3:25 PM
I see no problem with them going under. They have had a long feed on the public teat.
WFB resident - Mar 10, 2012 3:42 PM
aneuhauser - Mar 10, 2012 5:29 PM
WFB resident - Mar 10, 2012 5:51 PM
amount of money for the product ! On top of that they do not have to follow such
rigid environmental laws , Or pay above a minimum wage . Thanks PDLS's and
Dumocrats . For they will still mine . Just not in your back yard ,or with your
neighbors working there ! Thanks .
jman99 - Mar 10, 2012 6:02 PM
What they are doing now is economic black mail. What happens when there are no more taxes to give them breaks from? They will leave. They will only stay as long as they can get the state to contribute to an profit line that is based on an inefficiency of staying in Wisconsin.
Good economics would dictate they go now if they have true non-tax reasons for moving the operation to PA.
If you are against the bail out of GM and saving jobs from a company facing bankruptcy how can you not be for moving their operations to maintain their desired level of profitability?
Next year they would be back with their hand out again.
jman99 - Mar 10, 2012 6:06 PM
A smart person would adopt a tax code that taxes American companies on their over seas operation as if they were operating here.
I find it disgraceful that companies like Apple who file patents here and expect the US taxpayer to protect those patents for them then turn around and ship the jobs that make those patented items overseas.
If you file patent here, you build here or the patent goes to public domain. That's the way it should be.
That's one of the measures Obama is working on right now.
Republicans and their multinational trough fillers are against it of course.
WFB resident - Mar 10, 2012 7:35 PM
jhayett - Mar 10, 2012 8:09 PM
jman99 - Mar 10, 2012 8:20 PM
What has got Harley is what happened back in the 60's when the first Japanese bikes came in. What killed Harley was the Honda 750-4 a bike that had loads of power and was reliable as houses. Harley has always had a stone age design that you could replicate in your back yard with a welding torch.
Management didn't evolve the company so don't blame it on taxes. blame it where the blame belongs: lack of good forward thinking management.
jhayett - Mar 10, 2012 9:06 PM
http://motorcycle-specs.com/motorcycle_specification.asp?manufacturer=BSA&model=441%20Victor&year=1970
http://www.youtube.com/watch?v=DToeR5S_ZmY
Need to do better research. Harley is a US co BTW!
jman99 - Mar 10, 2012 9:33 PM
Yes I agree, they have been lagging behind a lot of the other bike manufacturers world wide.
reformed trucker - Mar 10, 2012 9:52 PM
All we need is white collar public sector union jobs. We'll be fine.
Now all we have to do is get Obama to fund them, because our tax base has left the
state.
jman99 - Mar 10, 2012 10:02 PM
And when you have got down to no tax and no regulation and they still want more, you start using property taxes to pay them to keep jobs in the state.
reformed trucker - Mar 10, 2012 10:43 PM
Obama is proposing.
Now you hate Obama also, jman?
"and no regulation"
I seriously doubt you'll ever have to worry about that around here.
Jacob Pickard - Mar 11, 2012 10:09 AM
I guess all the heavy metals being loosed into Lake Superior water basin and ground water aquifers is a good thing in a supposedly non-Sulpher deposit mine in Ashland County as well.
Sorry Al - But this blog reads as an excuse for Scott Walker. Maybe you should stast with the budget that took millions out of the state economy and the 6 months of steady job losses after.
Jacob Pickard - Mar 11, 2012 10:14 AM
Anybody who follows the global markets for iron ore shouldn’t be surprised by Gogebic Taconite’s decision to suddenly abandon a controversial proposal to open a new mine in northern Wisconsin.
After peaking at nearly $200 a ton in February 2011, ore prices have since plunged by more than 30 percent, with analysts now predicting a world glut of iron ore by 2014 and beyond.
Who says if the bill passed, they would even create a mine, if the market just fell from beneath them.
You guys make the failing assumption that GT should be trusted.
Tom Bal - Mar 11, 2012 10:59 AM
Instead of going through all the so called con’s and assumptions on why we shouldn’t trust GT let’s cut to the chase.
Man up and tell us the real reason the left didn’t want this mine passed.
For once come right out and tell us the true reason that the Dems and 1Half Dem voted this down.
Admit the real reason instead of skirting the real issue.
Let’s see if you can
WFB resident - Mar 11, 2012 7:56 PM
The o will not help Americans ! He just says so . 3 years of proof that he will not
help Americans is more of a history than not allowing the company to open its doors
!! So non of yous deffinetly will not vote in a Dumopcrat ? Ya der hey . lol...
reformed trucker - Mar 11, 2012 8:10 PM
jhayett - Mar 11, 2012 8:22 PM