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Wednesday, December 03, 2008

Richardson a Smart Choice for Commerce Secretary

President-elect Barack Obama announced his pick for U.S. Commerce Secretary today -- Governor Bill Richardson (D-NM). Many politicians in the Governor’s party declare to be “pro-business Democrats,” but Governor Richardson’s record and actions in New Mexico actually support his regular touting of this label.

He has publicly championed the fact that business-friendly policies are central to economic growth. For example, about his efforts to lower the top income tax rate from 8.2 percent to 4.9 percent in New Mexico, he told the Wall Street Journal in 2005: “This was our way of declaring to the world that New Mexico is open for business.”

He added: “After all, businesses move to states where taxes are falling, not rising.”

In fact, New Mexico has shown marked improvements in its business climate as measured by various private sector “ratings” that rank the states. Inc. magazine, for example, gave New Mexico a “four star” rating for the Governor’s pro-growth policies in October 2006. And, SBE Council’s Small Business Survival Index found that New Mexico showed major improvements in key areas that are used to measure the policy environment for small business start-up and growth.

Of course, there are policies where the business community has disagreed with the Governor -- specific tax increases, for example, and too much government spending. In general, however, his stances on trade and taxes, matched by his understanding that America needs a strong business sector, is a welcome sign from an incoming Administration that is looking to advance a wrath of new rules and regulations for U.S. businesses.

Make no mistake, Governor Richardson’s main job will be to help implement President-elect Obama's agenda (and some of those items could prove costly and burdensome for small businesses if fully implemented). During the presidential primary, he also showed some “flexibility” on issues (like taxes and trade), which belie his pro-business record.

There is no doubt that President-elect Obama needs a credible individual in his cabinet to work with the business community at home, and represent us abroad. Governor Richardson is a smart choice for Commerce Secretary.

As a key member of the Obama cabinet, Richardson will have a unique opportunity to put his self-proclaimed 'pro-business Democrat' label to work. Our nation’s precarious economic condition offers business leaders and entrepreneurs the opportunity to work with sympathetic political leaders who understand where economic growth comes from. One of those leaders is Richardson.

As a business leader, I am hopeful that Governor Richardson will seek input from entrepreneurs and the business community in regard to all the key issues that concern us. The many challenges that the U.S. economy faces are much too big to ignore those who are the central part of the solution.

Karen Kerrigan
President & CEO

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