Guest columnist Nicole Wolter: Chicago, state policymakers should rethink policy agenda
In Illinois, government red tape and high taxes are in vogue.
Chicago Mayor-elect Johnson, who is set to soon take office, is calling for $800 million in additional taxes. Gov. Pritzker recently championed the adoption of new employer mandates. And now, truckers are concerned about Illinois following in the footsteps of California; the state recently banned certain diesel trucks from the road if they were made before 2010.
Add policy threats coming from Washington and Prairie State small business owners like me are deeply concerned. Considering that the state's vibrant community of entrepreneurs is the backbone of the economy - employing 45 percent of the workforce - the situation should disturb everyone from Chicago to Carbondale.
Before implementing an act-now-think-later cocktail of higher taxes and more regulations, state policymakers should consider the unintended consequences it will have on small businesses. We've been seeing this movie play out for years - and it's currently unfolding as a slow-moving economic car crash. Policymakers should avoid piling on.
According to a recently released report from the American Legislative Exchange Council (ALEC), Illinois has the 5th weakest economic outlook in the country and is among the bottom 10 for economic performance. Why? Because of high tax liabilities, an overwhelming regulatory climate and the size of state government.
As a result, state businesses are in a predictably sticky situation. Major companies - including Boeing, Caterpillar and the major hedge fund Citadel - have made a dash for the exit. And with the broad business exodus, job levels are being compromised. Did you know that Illinois hasn't fully recovered to pre-pandemic employment levels?
Meanwhile, more business-friendly states are welcoming new companies and people to be employed by them, with open arms. Florida and Arizona, for example, are both ranked in the top 10 states for best economic outlook. Is it a coincidence these areas have been growing in population while Illinois shrinks?
To be more competitive, Illinois leaders - ranging from Chicago Mayor-elect Johnson to Gov. Pritzker - need to reset the policy agenda. It's clear the status quo isn't working. And as some economists suggest, thinning regulations is a good place to start.
The airline industry is an informative case study. Prior to the 1978 Airline Deregulation Act, the government had their hands in nearly every aspect of air travel - including ticket prices, routes and which companies could enter the industry. Today - more free of government red tape - airlines are encouraged to compete against one another to offer passengers the best, safest travel experience possible.
And it's working. While there is undoubtedly the occasional frustration with hitting the skies from Chicago O'Hare or Midway International Airports, passengers enjoy cheaper flights, a growing number of destinations and more options on how to get there. Not to mention, the economic benefits of allowing the industry to thrive.
O'Hare International Airport alone supports more than 400,000 jobs and produces $39 billion in economic activity. The success is why some thought leaders are warning lawmakers to avoid re-regulating air travel.
Illinois policymakers need to take a page out of that playbook. When it comes to government red tape - whether it's for commercial airlines, restaurants, or manufacturing companies like mine - less is more. State lawmakers need to hop on board. That way, the state can become a magnet for business rather than a repellent.
• Nicole Wolter is president and CEO of HM Manufacturing in Wauconda and a partner of the Job Creators Network Foundation.