Since October 2014, when I began writing Empire op-ed columns, a lot has happened on both the national stage and in our state and community. Throughout, I have advocated some basic principles I believe are important as our state and country struggle to contend with declining revenues, deepening government dependence, exploding health care costs and growing political division.
During this period, the progressive mantra has called for more government expenditures, higher taxes and increased government oversight and regulation.
I don’t subscribe to this philosophy. I prefer a fiscally conservative approach that supports balanced budgets, lower taxes and less government spending (hopefully translating to less government intrusion and overreach). Why not promote prudent spending so our kids aren’t burdened with infrastructure and programs that are not sustainable?
I believe firmly in the principles of free market capitalism — the economic system upon which our country was built. Without these principles, the United States could never have achieved the standard of living and freedom we enjoy today.
Within the last two election cycles, we have elected a new president, a new U.S. Congress, a new governor, a new state Legislature, a new borough mayor and a new borough assembly. These changes didn’t happen because voters were happy with the status quo. They happened for the opposite reason. Voters wanted change.
Not surprisingly, it appears finding agreement on that change will be a long and painful process.
Much of the resistance to change revolves around expanding our economy and developing our natural resources. Yet, looking back, it would be hard to find anyone who would say they are against “responsible development” of our resources.
You would also be hard pressed to find anyone arguing they don’t want higher paying private sector jobs, more available housing, better schools, and less expensive quality health care.
So why aren’t we making significant progress in these areas?
Some say we should spend more money. That, of course, would mean raising taxes further (or using more of the Permanent Fund). Their discussion often bypasses significant budget reductions or analysis of why increased expenditures in the past have not worked.
Even more disappointing, however, is that progressive arguments almost always diminish the importance of economic development. Real economic development is the only sure way to create permanent private sector jobs and encourage new businesses to form – thereby increasing our tax base. A growing economy is one in which our schools are healthier, our housing supply more abundant, and medical services become more affordable.
In a growing economy, you will see competition among businesses providing goods and services (such as housing and medical) that will create greater choice and lower prices. Yet, the first reaction among some when faced with competition is to immediately cry “foul”. This reaction is not consistent with an attitude that encourages quality goods and services at a lower cost in our community.
Government’s role isn’t to “create” economic development, rather it is to foster conditions allowing it to flourish – where the private sector is comfortable investing capital to expand an existing business or start a new one.
This is the reason why I’ve consistently advocated for the Lynn Canal Highway, a project that would promote increased commerce and add jobs throughout northern southeast Alaska between Juneau and Haines, Skagway, and Whitehorse.
It’s why I believe we should be working more cooperatively with industries in our state that would put people to work and expand our economy.
According to Alaska Department of Labor, Alaska will lose 7,500 jobs in 2017 along with the fourth straight year of increasing job losses in Southeast Alaska. Replacing those jobs through the private sector should be a top priority.
On the state level, our biggest economic partner, the oil industry, is hemorrhaging jobs and losing money. Yet progressives want to change our tax policy again by increasing taxes and reducing incentives to increase production – at the very time two significant discoveries have been announced and the jobs gained when they are developed would be enormously beneficial. This “us versus them” mentality has increased the level of distrust unnecessarily among everyone to a whole new level.
In our community, the cruise industry and the mining industry, Juneau’s largest economic partners, are rarely credited with providing a steady and stable stream of valuable tax revenue — along with opportunities for employment – especially for our youth.
I was further baffled when the CBJ’s initial response to welcoming Uber and Lyft to town was one of hesitation and suspicion.
Surely government is tasked with protecting its citizens’ interests, but these actions increase political polarization and are not consistent with a community or a state that truly understands the value of economic development and the benefits it provides.
Until that is understood, we will continue suffering from a struggling economy and an uncertain future.
• Win Gruening retired as the senior vice president in charge of business banking for Key Bank in 2012. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is active in community affairs as a 30-plus year member of Juneau Downtown Rotary Club and has been involved in various local and statewide organizations.
