Business & Job Creation
Businesses need a friendly and fair business environment so they can compete, innovate, and create jobs. We’re keeping politicians from playing favorites by offering special deals and tax breaks to the favored few.
With unemployment above 9 percent for more than 2½ years, the last thing Arizona needs is a mandated increase in the price of labor. Yet, that is what we’ll soon have when the state’s minimum wage rises by 30 cents an hour, a result of a 2006 ballot initiative.
The Goldwater Institute is representing Cindy Vong after the Arizona Board of Cosmetology shut down her foot therapy spa, which uses tiny Garra Rufa fish to eat the dead skin off of customers' feet. Ms. Vong went on the Peter Schiff Show to discuss her case.
The Goldwater Institute's Stephen Slivinski appeared on KFNX's Legalease, along with State Representative John Fillmore, to talk about job creation and a proposal that would create a state bank.
The Goldwater Institute's Dr. Byron Schlomach appeared on KAET's Horizon to discuss Arizona's new venture capital endeavor--the Fund of Funds.
These days, most states have some sort of government agency responsible for bringing jobs into the state. Most of them, including Arizona’s new Commerce Authority, focus on “target” industries. Whether the focus is the solar industry or another group of companies, the punchline is always the same: a centrally-controlled body – either the agency or the state legislature – should direct taxpayer-financed resources to nurture specific companies for the good of the state’s economic future.
Excessive regulation is needlessly destructive to the economy and job creation – and the Goldwater Institute’s annual Legislative Report Card shows that elected officials in both parties fail to recognize the problem.
May 16, 2005 was a great day for fans of free markets and especially wine. For on that day, in Granholm v. Heald, a case I had the honor of arguing, the U.S. Supreme Court struck down state laws prohibiting the direct interstate sale of wine to consumers.
When state legislatures reconvene in January, a priority for many will be passing some kind of “jobs” bill. What form that might take is open to debate, but there are already lessons to be learned on what not to do.
In 2009 the Arizona legislature, like many other states, passed a bill providing “tax incentives” (AKA subsidies) for renewable-energy industries. The legislature partly responded to pressure from those who thought they’d found the next big thing in "green jobs." It also followed on the heels of a new solar panel factory in Tucson, Arizona.
State legislators looking to spur job creation should reject federal stimulus efforts as a model. In fact, there are at least two lessons in what not to do that policymakers can learn from President Obama’s failed effort to energize economic growth through government spending and temporary tax gimmicks.
Cindy Vong is a tiny woman with a problem as big as the government that is causing it. She wants to provide a service that will enable customers “to brighten up their days.” Having fish nibble your feet may not be your idea of fun, but lots of people around the world enjoy it, and so did some Arizonans until their bossy government butted in, in the service of a cartel. Herewith a story that illustrates how governments that will not mind their own business impede the flourishing of businesses.