It is not the role of state or local government to pick winners and losers in the marketplace, which is exactly what so many economic development programs do. The proper role of government is protecting open competition that encourages new businesses to enter profitable markets, which in turn creates new private sector jobs. This “pro-market” approach contrasts with a “pro-business” approach that panders to existing businesses threatened by competition by providing favored businesses with special benefits, subsidies and tax exclusions – corporate welfare – which ultimately stifles the benefits to consumers of true free-market competition.

A pro-market approach creates an overall competitive business environment that favors no one business but is favorable for all types of businesses. It rejects subsidies for specific industries not because of ideology, but because subsidies support inefficient companies and siphon resources from companies who could use them more efficiently to create new wealth and new jobs. A pro-market strategy rejects programs like JOBZ that give tax breaks to businesses for making unsound business decisions they would not make without government intervention. It restrains the use of Tax Increment Financing when that policy motivates communities to outgrow their revenue base.

Although economic development policy is fostered by legislative and executive branch actions, the State Auditor, independent of both the Legislature and the Governor’s Office has the authority to audit the ways in which local governments use tax dollars for economic development. An active State Auditor, Pat will ensure that so-called economic development programs are judged from a pro-market perspective. No tax payer should see his or her money go to support a competitor.