It’s time to change the state business climate

Published 8:54 am Wednesday, October 29, 2008

By now anyone who has had a chance to talk to me knows that the major plank of my platform is growth and job creation. I feel there is nothing more important to our district than growth. Most of our problems are solved with growth. We need people to move here, we need our current residents to stay and we need opportunity for our children so they can stay.

We have had a shrinking population for years. A shrinking population is a death knell for our district. The problem is more government expense spread out over fewer people. This means each of us has to pay more in taxes to cover the ever increasing costs of government. The higher the taxes we have the harder it is to keep our current businesses and attract new businesses. We will lose more people compounding the problem. It is a downward spiral.

So, what do we do? If we are going to get people to move here they need jobs, if our children are going to stay, they need jobs, and if we want our college grads to return, they need jobs. Jobs require employers (businesses). When you shop, you look for the best deal. Businesses looking for a place to set up or expand to are no different than you, they look for the best deal. Minnesota is not the best deal. This is the root of the problem.

Email newsletter signup

Minnesota has one of the worst business climates in the nation. According to the Small Business & Entrepreneurship Council’s Small Business Survival Index, Minnesota is in the bottom five states for being friendly to small businesses and entrepreneurs. This is why our area has come up short so many times in the race to attract new businesses. According to the Small Business Administration, over the last 10 years 60 percent to 80 percent of all net new private sector jobs are created in small businesses. You cannot be pro job in a climate of anti job creation.

Many of our best employers are home grown businesses, Lou Rich, Mrs Gerry’s, Minnesota Corrugated Box and Agilis just to name a few. Most of these businesses did not exist 30 years ago and now they employ hundreds of our citizens. Who will be the next one? We don’t know, but they won’t be here if we don’t improve our business climate. They will locate. in the Dakotas, or Iowa or Wisconsin, or Nevada or Texas. Year after year companies located outside of Minnesota get the benefit of a work force educated right here in Minnesota.

My opponent claims she voted for 40,000 new jobs. Let’s be clear, you cannot simply vote for jobs. Jobs have to be created. This requires hard working individuals taking risk and investing money. Money they don’t have after our high tax and regulating state takes it from them.

Government jobs, while necessary, are funded by the taxes each of us pay. Private sector jobs are funded by the free enterprise system. Simply put, more government jobs means more taxes have to be paid. Private sector jobs means less taxes have to be paid. Which would you prefer?

So again, what do we do? First, Minnesota must decide that it wants to be a job state and then we focus on that task. This means we maintain and improve our high levels of education through innovation and fairness. We maintain and improve infrastructure from roads and bridges to communications and power grids. We produce inexpensive, reliable and abundant energy. Most importantly, we empower the free enterprise system by reducing the burden of government on our businesses and citizens. A legislator cannot vote for private sector jobs, they can only vote for policy that encourages job creation. They can vote to improve our state’s business climate helping create economic freedom that produces private sector jobs and individual wealth.

I will take the lead at the Capitol to improve our state’s business climate and work closely with our local economic development people in Freeborn and Mower counties to attract new businesses, big and small, while encouraging our current businesses to stay and grow here.

Erik Larsen, R-Albert Lea, is a candidate for Minnesota House District 27A.