The Texas Governor campaigned for Illinois businesses and he spoke earlier this week at a conference. But, he is not alone – other states also want Illinois businesses:
Perry is not the only governor out to siphon commerce this week. Wisconsin’s Scott Walker on Tuesday attended the same Chicago conference, touting his state’s business environment and standing as a bioscience leader. A day earlier, Florida’s Rick Scott sent a “Wish you were here” letter to Illinois business owners, noting that his state is “nipping at the heels of Texas every day” as a place to do business and pointing out that “Illinois’ formula of more taxing and spending ISN’T WORKING.” (Never let it be said Scott is undercapitalized.)…
Perry isn’t just selling Texas in a state weighed down by budget crises and the lack of political will to make the tough choices that solutions will require. He is on a trip financed by a public-private partnership to sell the concepts of lower taxes, less government interference, “a legal system that doesn’t allow for oversuing,” lower workers comp rates…
In this, pitting one state against another is good, Perry argued, in “the same way that it’s good for the White Sox and the Cubbies to compete against each other. If you don’t have competition, you’re not going to get pushed out of your comfort zone. That’s the simplest form I can put it in. I think our Founding Fathers understood that you had these laboratories of innovation and the ones that were good at it would be successful.”
Perry ignores one area of competition present in the Chicago area: between cities and suburbs. There have been numerous discussions in recent years about the tax breaks offered in different communities (here is an example in Hoffman Estates) or Chicago attracting headquarters and businesses back to the city and whether this harms the suburbs. Granted, all of these communities have to deal with the issues and regulations of the State of Illinois. But, it appears a number of businesses have still found places they like including in the Loop, Schaumburg, Northbrook, Deerfield, Naperville, Oak Brook, and other places. Between these localities, businesses can look for favorable settings and take advantages of the peculiarities of each place.
There was also one issue that highlighted a possible problem in Texas that may have been highlighted by a recent tragedy:
Take a good look at how close the fertilizer factory that blew up last week was to a middle school and nursing home in West, Texas, and decide for yourself whether you endorse Texas’ stance on zoning (“We respect local control,” Perry said) or think the state should intervene. Laissez faire isn’t always the way to go.
I assumed Illinois provided for local control over zoning as well…though I’m not sure what happens when it comes to potentially dangerous fertilizer plants.