Chamber Plans Economic Talks
By CARRA HIGGINS , Staff WriterCould Randolph County become more economically stable by decreasing taxes and putting an end to business regulations? There are two sides to nearly every issue and the Elkins-Randolph County Chamber of Commerce plans to spark economic debates during the upcoming months beginning in October.
"The more knowledge we have, the better decisions we make," said Davis Memorial Hospital President Mark Doak.
West Virginia University Economics Professor Dr. Russell Sobel, co-author of "Unleashing Capitalism: Why Prosperity Stops at the West Virginia Border and How to Fix It," set up future discussions Friday by presenting some basic ideas from his book.
Prosperity in other states and countries doesn't happen because of an abundance of natural resources or a certain political system, Sobel explained. Instead, government policies have made West Virginia the "least free-market economy in America," Sobel said.
Creating a positive economic climate is a lot like baking a cake, Sobel said.
West Virginia has great "ingredients" for economic inputs and resources such as skilled labor force, technology and infrastructure and resource availability. But government policies, which Sobel refers to as the "oven" isn't on, he said. Tax system structure, business regulations and private property rights security need adjusted to make sure the "oven" is hot enough to produce positive economic outcomes (the "cake") such as increases in wage and income, new businesses and more jobs.
Government control of resources and business alarms economists, Sobel explained, and business is often hesitant to locate in areas with high taxes on capital. To woo business, government bodies assume ownership of buildings and the capital and everything to the corporation, according to Sobel.
The Toyota Plant is one example at the state level and locally it's Armstrong World Industries. After the lecture, Gary Clay of Armstrong asked whether it is in Armstrong's best interest to remain in Randolph County in the future when it assumes ownership of the plant. High taxes could mean Armstrong will take its jobs and business elsewhere, Clay explained.
According to Randolph County Development Authority Executive Director Jennifer Giovannitti, the plant won't take ownership of the building until 2018.
It's not always big businesses that help shape a state's economic future, according to Sobel. Entrepreneurs are abundant in West Virginia, however they face barriers to begin a business, Sobel said. Business regulations are often created with good intentions, but are overwhelming for individuals who want to opening up shop, Sobel explained.
Often it is smaller businesses that help states grow economically, Sobel said. The ideas entrepreneurs bring to the table should be tried because they could be the next big thing.
"You can't plan an economy," Sobel said after explaining people believed there would never be use for a home computer.
Giovannitti also attended the introductory session.
"I read the book two years ago ... and it is incredible to look at the real data," Giovannitti said. "The fact that there are strategies out there that other states are using ... I think there's a lesson there.
"The tax on personal property is a legitimate point," Giovannitti said. "We can't lose industry because there's one thing to disadvantage people."
Although many business regulations are made at a state level, Giovannitti said Randolph County can try to attract business by offering land and ensuring a skilled workforce.
Public discussions on the local economy and ideas for improving it will take place the first Friday of each month, with the exception of October. Because the first Friday coincides with the Mountain State Forest Festival, the date will likely be moved to Oct. 12. Anyone interested in participating may call the ERCCC at 637-0803.
Sobel's book may be purchased online at Amazon.com.
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OldTimer
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09-06-08 1:30 PM
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You mean the local and federal politicians would no longer control their world as they wish. Sounds like the feudal state of West Virginia may be thinking of leaving the 18th century. Keep up the good work.
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