Marketplace of Ideas Blog

Milwaukee Journal Sentinel columnist John Torinus tells the story of American Video & Security of Black Creek and how it illustrates how entrepreneurs make “a lot more sense about long-term job creation than President Barack Obama and Gov. Jim Doyle did in their respective addresses last week”:

Politicians show an inkling of understanding what entrepreneurs do for the economy but are more concerned about short-term moves that make them appear to be doing something.

The president is talking about a second stimulus package, when economists agree the first stimulus package didn't do much for reducing unemployment. The December numbers for the country and Wisconsin worsened from November.

Obama also is proposing $33 billion in job credits. I surveyed about 15 small businessmen in two meetings last week, and it was unanimous that a small credit of say $5,000 would not affect their hiring decisions. They would file for the credit, of course, if they do hire. But adding employees will be strictly a function of orders.

One outcome is for sure. Those kinds of desperate moves will add to the federal deficit and debt. …

In talking to Wisconsin business people about how to get the economy moving again, they are more interested in long-term solutions than quick fixes. For entrepreneurs, the tax credits help, but more important is capital formation. …

The recent announcement of a fund to raise $100 million in venture capital in Wisconsin was welcome news. Other states already have done so. Government won’t be the main player, but it can be supportive. Government pension funds could put a small slice of their assets in such alternative investments.

Beyond that, business people long to see the general business climate improved. Because the state is in economic crisis, the steps to send a message that Wisconsin is open for business need to be dramatic, almost shock treatment. The next governor and Legislature have their work cut out for them.