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Issue Position: Jobs & Business Climate

Issue Position

Location: Unknown

A state's business climate is determined by many things -- tax rates, worker's compensation rates, the legal climate, etc. Perhaps the greatest determinant of a state's business climate is the philosophy of its leaders. In short, there are Big Government Advocates (BGAs), more commonly referred to as Progressives, and Small Government Advocates (SGAs,), better known as Conservatives. Illinois has been governed by the former for the last decade.

BGAs believe in an ever expanding role of government. If there is a societal problem, BGAs believe government has the answer. More often than not, this results in more laws and certainly more regulation. For more information on this, read Peggy Noonan's article "Revolt of the Accountants" in the Wall Street Journal.

Conversely, SGAs believe in limited government. Minimalists, like me, believe government should do a few things and do them well. Read more about this in Charles Krauthammer's article, "The importance of consititutionalism" in The National Review.

It's important to remember the concept of "Systems Thinking" when discussing job creation and/or business climate. The majority of state revenues come from personal income taxes, corporate income taxes and sales ta xes. Logically, it makes sense to create an environment which nourishes the creation of jobs because the tax revenues created by the private sector jobs funds the very programs administered by the state. A thriving economy means more money for education, social services, law enforcement, etc.

Job creation is hampered by some of the highest worker's compensation and income tax rates in the nation. You cannot be pro-job yet enact policies that punish job creators. For a revealing look at a breakdown in the system...

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