WVE: When was your organization founded, and what type of research does it conduct?
GB: The Cardinal Institute for West Virginia Policy is a 501( c)( 3) nonprofit organization that was chartered in late 2014. The thought was that West Virginia needed to have a more robust marketplace of ideas and that a principled, research-driven, free-market voice such as the Cardinal Institute could contribute to the policy discussion in a meaningful way. Cardinal has several research areas, but we tend to focus on issues such as education, tax / fiscal policy, government waste and, more broadly, economic freedom.
WVE: Which of West Virginia’ s current challenges do you find most concerning?
GB: The drug epidemic is an absolute economic, moral and cultural disaster for our state. While it is certainly a cause of many problems in West Virginia, the epidemic itself is symptomatic of the poor economic environment and lack of opportunity here.
While less tangible, a major challenge facing West Virginia is a certain sense of fatalism. West Virginia has never really been prosperous in any living person’ s memory— things have been better but never great. Over generations, I think that instills a sense of“ that is the way things have always been, so that’ s how they’ ll always be.” People are fearful or suspicious of trying anything new that, while it might make things better, may also make them worse. When you’ re living on the razor’ s edge economically, that’ s simply a risk most people just aren’ t willing to take.
WVE: Where do you see opportunities for West Virginia to turn itself around?
GB: I believe the major opportunities in West Virginia will be generated by private citizens and small businesses. West Virginia needs to remove any barriers to entrepreneurship that prevent people from starting a business or make it more difficult to grow a business. West Virginia should also set a goal of making itself the easiest state in the nation to start a business. We have the lowest density of start-ups in the country and third-lowest percent of population that becomes entrepreneurs. Do I believe it is because West Virginians are, by nature, less entrepreneurial than people in other states? Absolutely not. However, I do believe there’ s a sense that folks think they can’ t do it here. Given that mindset, the state needs to make it as easy as possible to start a business here.
WVE: In terms of diversifying our industries, in which areas do you think we need to grow or explore?
GB: We cannot make our state diversify. There isn’ t a person or group of people who can create diversity in our economy with the stroke of a pen. If we desire economic diversity, it will have to come from a tax code that doesn’ t pick winners and losers and doesn’ t penalize success, a regulatory environment that is predictable and fair and an education system that allows parents to choose the type of education that best fits their child’ s needs. If we can avoid the temptation to design or in some way plan our economy, West Virginia’ s most efficiently diverse economy will emerge spontaneously and not from bureaucratic or legislative diktat.
WVE: How do you think the issue of the state’ s shrinking population should be addressed?
GB: Young people are attracted to places with opportunities and jobs. If West Virginia can have an economic environment that fosters job creation, we will begin to see young people stay here, and we will also begin to attract young families from elsewhere. Unfortunately, West Virginia will always have difficulty attracting nonnative young people unless the state can rid itself of the backward reputation it has. The number one way to do that is through a robust, healthy economy that provides a variety of opportunities.
WVE: What can be done to improve West Virginia’ s business climate ranking?
GB: I think West Virginia can learn a lot from the group of states that regularly sit atop business climate rankings, like Texas, Utah, North Carolina, Florida, Georgia and Wyoming. Highly ranked states are typified by a low-tax environment. By contrast, according to the Tax Foundation’ s business climate rankings, the bottom 10 states tend to have“ complex, non-neutral taxes with comparatively high rates.” They often have some form of rightto-work law and usually have a regulatory and legal environment that is predictable and stable. While it was controversial at the time, I think the right-to-work issue went the right way for the state if West Virginia hopes to attract business here. For example, Kentucky has seen a substantial increase in investment since they passed right-to-work. Hopefully, West Virginia will begin to see some benefits once right-to-work becomes the official law of the land. So, with right-to-work, recent tort reforms and the high likelihood that West Virginia gets a better tax code in the near future, I think the state has some brighter years ahead.
WVE: With small businesses being the backbone of the economy, what should West Virginia be doing to support and encourage its entrepreneurs?
GB: A strong push for entrepreneurialism could be huge for the state in a few ways. I truly believe the state should formally adopt a day on the calendar that recognizes and honors entrepreneurs and the value they create for their communities and their fellow West Virginians. A day that recognizes such value creation could psychologically benefit the state, especially its young people.
From a policy perspective, the state needs to make sure it’ s easy to start a business here. For example, get rid of burdensome occupational licensing; make it easy to file paperwork; ensure a level playing field by not enacting regulations that make it easier for larger, more well-established companies to comply; and have a tax code that is simple, transparent and neutral. Combined with education about entrepreneurship, that simple policy prescription would allow many entrepreneurial flowers to bloom, and the state’ s economy would benefit in a huge way.
WVE: West Virginia is in dire need of resuscitation. As simple as possible, what do you think the answer is?
GB: The space for entrepreneurship, individual creativity and education choice must be expanded through a smaller, more limited government.
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