Government doesn't create jobs, businesses do

The headline is a quote from the relatively new director for the Department of Commerce, Rogers Weed. I couldn't agree more. He goes on to say,

"About 80 percent of our state's economy comes from private sector activity, so we must have a strong, mutually beneficial relationship between government and the business community if we are to succeed in our mission to grow and improve jobs throughout the state."

Since the Legislature changed the name and focus of the somewhat amorphous Department of Community, Trade and Economic Development to simply the Department of Commerce, the department has gone through a metamorphosis of sorts. The legislation passed earlier this year not only changed the name of the department but directed the new staff to deliver a plan to better serve the needs of businesses and narrow its focus on economic development. The department is preparing to release its formal plan next week.

One of the things Director Weed mentioned in a meeting once was that when he arrived there was only one half equivalent of a full-time employee tasked with focusing on the needs of small businesses. Obviously that is insufficient, as small businesses make up almost half of the private sector workforce.

But I'm glad Director Weed leads off with the fact that it is not government's job to create jobs. Sometimes it's playing the supporting role, through infrastructure, education or transportation improvements. But other times it's getting out of the way -- streamlining regulations, easing the tax burden, etc.

It's important to have someone in charge who recognizes when government should step in and when it needs to simply get out of the way and let innovators innovate and entrepreneurs take risks.

I look forward to the final Commerce report.

In the meantime, you can see Director Rogers Weed at WPC's November 10th Statewide Small Business Conference at the SeaTac Hilton (smallbusinessconference.org). He will speak during the morning legislative breakfast panel.

Comments

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Businesses always have created wealth in Washington and most work is related to small business ... let's remember the little guy who is slugging it out everyday without a guaranteed paycheck ... hold it I guess not many in business have that anymore either!