Comments on: Climate Whine http://www.vermontnewsguy.com/climate-whine Real News for Real Vermonters Mon, 29 Nov 2010 16:59:26 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: Mike Palmer http://www.vermontnewsguy.com/climate-whine/comment-page-1#comment-1855 Mike Palmer Sat, 26 Jun 2010 11:03:16 +0000 http://www.vermontnewsguy.com/?p=2006#comment-1855 As Mr. Margolis suggests, when assessing the climate for business of a given state, we should ask what criteria we should use to make this determination. Having worked for the past few years as a consultant in various emerging market countries on projects to improve the conditions for economic development, I have had an opportunity to gain a broader perspective on factors such as the following that contribute to or detract from a business-friendly environment: 1. How prevalent is corruption in both business and government? Do I have to bribe people to do business in this location? (Vermont: No. Chicago: More so. New Jersey: Even more. Baku: Yes.) [Corruption is a tax with no benefit.] 2. Does the state have an efficient and cost-effective legal and judicial system? [Vermont: Yes. Chicago: Less so. New Jersey: Even less. Baku: No.] 3. What is the level of social capital (a measure of trust in society)? Is there a climate of trust or distrust and suspicion? 4. What is the quality of life generally? 5. What is the level of education in the population generally? [Vermont has the second highest high school graduation rate in the country.] 6. What educational infrastructure is available (public schools, colleges and universities, available continuing education resources) [Vermont has 26 colleges and universities located throughout the state, including a medial school and a law school.] 7. What is the work ethic in general? 8. Do business organizations exist that support and encourage the development of socially responsible businesses and otherwise assist business leaders in growing healthy enterprises? [VBSR is the oldest and largest regional organization of socially responsible businesses in the country] 9. Are government officials (elected and professional) accessible? [Not only can you speak directly to Governor Douglas; but it is likely he will know your name.] 10. What is the transportation and communication infrastructure like? With respect to regulations and taxes, the appropriate inquiry is what we receive in exchange, that is, whether the benefits exceed the costs. As Oliver Wendell Holmes wrote, "Taxes are the price we pay for civilization." How much civilization do we get in Vermont for what we pay and how valuable is it for business? It is no accident that "made in Vermont" enhances the value of Vermont businesses. Many regulations help protect the Vermont brand, making our products more competitive throughout the world. Other regulations help make the state a great place to live and a destination for tourists, who contribute significantly to our economic prosperity. For example, Act 250 may be a pain at times, but it has helped preserve an environment all of us enjoy. Act 60 is not perfect, but it has brought us closer to the equality of educational opportunity required by our Constitution and by simple decency. In Vermont, we experienced a less severe unemployment crunch from the recent recession than most of the rest of the country and are recovering faster. I suspect that our good governance and business climate helped make that possible. Similarly, the issue with taxes is not how high or low they are, but rather what we receive in exchange. Are we getting the best bang for the buck? For example, Sweden, which like Vermont has a thriving business culture, has a total tax cost far in excess of anything we have in Vermont or the United States. But the people of Sweden enjoy one of the highest standards of living anywhere in the world. Taxes alone do not make that possible, but taxes enable the people to purchase education, transportation, health care, safety, and other common goods that make working and living there quite enjoyable. They have made a choice, in effect, to pool resources through taxes to assure a higher quality of life for all. Like Mr. Margolis, I hope we can develop a more differentiated understanding of what makes a state attractive to business--or not. Although we have room for improvement (we need universal broad band access, for example), on the criteria that count, our State is one of the best places to do business in the country. Mike Palmer EthicsByDesign.com Cornwall As Mr. Margolis suggests, when assessing the climate for business of a given state, we should ask what criteria we should use to make this determination. Having worked for the past few years as a consultant in various emerging market countries on projects to improve the conditions for economic development, I have had an opportunity to gain a broader perspective on factors such as the following that contribute to or detract from a business-friendly environment:

1. How prevalent is corruption in both business and government? Do I have to bribe people to do business in this location? (Vermont: No. Chicago: More so. New Jersey: Even more. Baku: Yes.) [Corruption is a tax with no benefit.]
2. Does the state have an efficient and cost-effective legal and judicial system? [Vermont: Yes. Chicago: Less so. New Jersey: Even less. Baku: No.]
3. What is the level of social capital (a measure of trust in society)? Is there a climate of trust or distrust and suspicion?
4. What is the quality of life generally?
5. What is the level of education in the population generally? [Vermont has the second highest high school graduation rate in the country.]
6. What educational infrastructure is available (public schools, colleges and universities, available continuing education resources) [Vermont has 26 colleges and universities located throughout the state, including a medial school and a law school.]
7. What is the work ethic in general?
8. Do business organizations exist that support and encourage the development of socially responsible businesses and otherwise assist business leaders in growing healthy enterprises? [VBSR is the oldest and largest regional organization of socially responsible businesses in the country]
9. Are government officials (elected and professional) accessible? [Not only can you speak directly to Governor Douglas; but it is likely he will know your name.]
10. What is the transportation and communication infrastructure like?

With respect to regulations and taxes, the appropriate inquiry is what we receive in exchange, that is, whether the benefits exceed the costs. As Oliver Wendell Holmes wrote, “Taxes are the price we pay for civilization.” How much civilization do we get in Vermont for what we pay and how valuable is it for business?

It is no accident that “made in Vermont” enhances the value of Vermont businesses. Many regulations help protect the Vermont brand, making our products more competitive throughout the world. Other regulations help make the state a great place to live and a destination for tourists, who contribute significantly to our economic prosperity. For example, Act 250 may be a pain at times, but it has helped preserve an environment all of us enjoy. Act 60 is not perfect, but it has brought us closer to the equality of educational opportunity required by our Constitution and by simple decency. In Vermont, we experienced a less severe unemployment crunch from the recent recession than most of the rest of the country and are recovering faster. I suspect that our good governance and business climate helped make that possible.

Similarly, the issue with taxes is not how high or low they are, but rather what we receive in exchange. Are we getting the best bang for the buck? For example, Sweden, which like Vermont has a thriving business culture, has a total tax cost far in excess of anything we have in Vermont or the United States. But the people of Sweden enjoy one of the highest standards of living anywhere in the world. Taxes alone do not make that possible, but taxes enable the people to purchase education, transportation, health care, safety, and other common goods that make working and living there quite enjoyable. They have made a choice, in effect, to pool resources through taxes to assure a higher quality of life for all.

Like Mr. Margolis, I hope we can develop a more differentiated understanding of what makes a state attractive to business–or not. Although we have room for improvement (we need universal broad band access, for example), on the criteria that count, our State is one of the best places to do business in the country.

Mike Palmer
EthicsByDesign.com
Cornwall

]]>