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 .
WWW . WVEXECUTIVE . COM SUMMER 2017
71