Look to private sector for recovery

Ever wonder how many new jobs need to be created to generate the tax revenue necessary to pay down the state's deficit? The Chicagoland Chamber of Commerce asked Geoffrey Hewings, Director of the University of Illinois' Regional Economic Applications Laboratory, to help us figure it out. According to Hewings, to eliminate $1 billion of deficit the state needs to add about 250,000 new jobs and nearly 3 million more to eliminate the entire deficit.

Most discussions about Illinois' deficit focus on cutting waste and reforming the pension system. The Chamber supports these efforts. However, unless we couple cost reduction and other structural deficit remedies with a new economic development strategy that dramatically increases the number of new and high wage jobs, we will never crawl out of this hole.

Illinois must build a sustainable, growth economy that is supported by the world's most innovative, entrepreneurial, globally connected businesses from startups to established firms.

This requires new strategies and tactics, and, yes, investment all dedicated to creating the environment necessary to promote business attraction, retention, expansion and startups. Where do we start?

We can look to Ohio for some ideas. Ohio has invested $1.4 billion to create an “innovation ecosystem” that supports technology-based economic development. The results are impressive: 627 new companies, 41,300 new jobs and $2.4 billion in wages/benefits. Every dollar invested generates $10 and while other sectors declined, Ohio's high-tech sector grew by 4 percent. Funding is generated by bond issues voted on by Ohio citizens, who choose to invest in their state's economic future.

Illinois is rich with assets; we need to leverage these assets better and rebuild our state by rebuilding our economy. In the end, wealth is created by the private sector, not by government and not by the nonprofit sector. Now is the time to act.

Lance Pressl

Foundation president

Chicagoland Chamber of Commerce