Economic Summit II - Remarks and Speeches

Wisconsin's Economy at the Crossroads:
Building Higher Paying Jobs for the Future

November 26-27, 2001
Midwest Express Center, Milwaukee

The Role of Government in Building the New Economy
Assembly Minority Leader Spencer Black
November 27, 2001

Twenty years ago, a former president spoke the much-quoted line, "Government is not the solution. Government is the problem."

It made a great sound bite and an even better bumper sticker. But in the real world, whether you're running a business from the board room or working for hourly wages on the assembly line, most people realize that it isn't that simple.

Indeed, many people who reflexively think of government as the problem had reason to reconsider, when they saw the impressive role that public servants played in responding to the devastating events of September 11.

The reality is that, while businesses may find government policies problematic on occasion, thoughtful public initiatives and investments are an important part of the solution of our economic future. This will be truer than ever as we focus not just on jobs, but on high paying jobs.

We have to be far more thoughtful and analytical about government's role in business development than we have in recent years. Perhaps more businesslike in our relationship to business - By that, I mean taking a hard look at the cause and effect between public policies and economic outcomes. Every business tax break or loan subsidy is not automatically a job creator, although there are some that may well be.

We need to be mindful that it is not government's role to pick economic winners and losers - the marketplace is far more efficient at that. The appropriate role for government in building the economy of the future is to provide the environment for economic growth.

We need be careful to distinguish between those public policies that truly impact where businesses locate and whether they grow and those public policies that primarily designed to allow politicians to claim credit for economic growth that likely would have occurred anyway.

Today, as the theme of this conference makes clear, Wisconsin's economy stands at a crossroads. There is tremendous potential for our state to vault ahead in research, technology, and communications - if we position ourselves to take advantage of the opportunities in those areas. And we have the experience, expertise, and vision gathered together at this summit to formulate some very specific, precisely targeted strategies to do that.

While we need look for new directions and initiatives, I would suggest that our efforts to build Wisconsin's economy begin with building on our assets - strengths such as our world class University, a good educational system and a high quality of life.

In that spirit, government's role in helping to foster high paying jobs should be to make those investments that can only be made in common, to provide a solid foundation for long term economic growth.

Let me suggest four key areas of public policy and investment that will be essential to creating such a foundation.

The University of Wisconsin: The research capabilities of the UW System are the engine for growth in the future economy. Across the country, research institutions have been responsible for significant knowledge based job creation in the private sector - usually high paying jobs at that.

Almost mind boggling advances in knowledge of biology at the University has already led to significant job growth - and those jobs - generally good paying - are hopefully just the tip of the iceberg. Biotechnology-related fields where Wisconsin already has a national edge specifically because of our University. Unfortunately, the state support as an overall share of the University budget has been falling. This last budget did address that problem somewhat with a number of positive initiatives to reinvest in our University. Let us not forget that continued investment in the UW is essential to our future in the new economy.

While strong state government action is essential in some policy areas, such as renewing our commitment to the University system, in some policy areas, the best thing to do as a government official is to do nothing. That is definitely true when it comes to trying to regulate what scientific research can and cannot be done. During the last summer's budget, the state Assembly included a provision in their version of the budget that would have outlawed stem cell research at the UW. That would have shut down one of the most promising areas for future high paying jobs in our state not to mention one of the promising areas for medical advances for treatment of many currently incurable diseases. That unwise effort to stop scientific progress was fortunately eliminated in the conference committee but it has often been said that if you want to achieve immortality, become a bad idea at the state Capitol. This is a bad idea that will keep coming back and must keep being stopped.

Education: A qualified work force is the most important asset that a state can offer. Investing in quality education will pay long-term dividends, and I don't use those terms casually. It is an investment, in the sense that the dollars we put into our public schools are paid back in the form of well-prepared graduates ready to work. And that pays dividends in the form of providing a skilled labor force to industries competing for the best-qualified workers. Not to be neglected is the essential role that our Technical College system can play in responding quickly to job training opportunities and needs.

A High Quality of Life: This term includes many things, but more and more a high quality of life and economic development go hand in hand. For many new economy businesses, especially those with a high proportion of good paying jobs, geographical proximity to resources or markets is far less important than for traditional heavy manufacturing. Business location decision-makers want to live in attractive places, and the ability to attract top-notch staff is also enhanced by a high quality of life.

A key part of the high quality of life is a clean environment and ample opportunities for outdoor recreation. In Wisconsin, we have long known that our economy and environment are linked because of the important role tourism plays in our state's economic well being. This link between economy and environment which we already generally acknowledge for the tourism sector should be broadened to include the beneficial impact of a clean environment on attracting jobs in the new economy jobs.

In the Pacific Northwest, many young professionals call the chance to enjoy the outdoors 'their second paycheck.' Wisconsin may not have the high mountains of the west (the Governor's website to the contrary) but we do have great opportunities for outdoor recreation. I know of an owner of a high tech firm in my Assembly District on the West Side of Madison whose decision to locate his business in our state was influenced by the proximity of a world class trout stream. But more of our open spaces are disappearing every day. Investments such as those we make through the Warren Knowles-Gaylord Nelson Stewardship Fund and in our state Park system allow us to safeguard opportunities for outdoor recreation and preserve them as an asset we can offer to newcomers. The arts are also an important part of the quality of life as are well planned communities and good schools. The bottom line is that Wisconsin is a great place to live. That will count more and more as we try to attract and retain businesses that in many ways could be located almost anywhere.

4. Energy: California has learned the hard way the debilitating impact that energy problems have on the economy, and California has learned the hard way about ignoring energy problems until a crisis point is reached.

In Wisconsin, low energy costs have always been one of our strongest selling points. But in the last few years, the reliability of that affordable energy supply has become a new concern. Brownouts and blackouts are no longer unthinkable here, and if that is inconvenient for households, it is potentially disastrous to businesses.

We need statewide energy planning to ensure an adequate supply of reasonably priced energy. While Wisconsin's old advance planning process was cumbersome and ultimately ineffective, a streamlined effort to coordinate energy investments is necessary. It is also essential to include conservation (and where appropriate, renewable energy) in the mix since the money we spend on gas or coal to generate power goes right out of our state's economy.

You have spent two days talking about many factors that will influence our economic future, and I look forward to a constructive dialog in the Legislature about the strategies that have emerged here.

Wisconsin has great strengths. Let's not neglect them or take them for granted. I am not sure by our nature we've done enough to promote ourselves to a wider audience. Let's underline our assets and aggressively market them. I was glad to see Governor McCallum emphasize this yesterday.

Let's continue and enhance our investment in our educational system, our University and our quality of life. I believe our state's enduring strengths will stand as well as our economy grows.