South Carolina Department of Commerce move

Former newspaper reporter who became a corporate spokesman Bobby Hitt is preparing to step down as South Carolina Department of Commerce (SCDOC) secretary, reportedly reporting to the governor Henry McMaster of your intention to resign in the coming weeks.

Appointed to the position in 2011 by the former governor Nikki Haley, Hitt presided over a massive expansion of the Palmetto State capitalist approach to “economic development”. This approach consists of state and local leaders distributing billions of dollars in grants that distort the market to select corporations at the expense of individual taxpayers and small businesses.

It worked? No … this is probably why Hitt’s agency was reduced to increasing the numbers of some of its most notorious corporate gifts.

South Carolina has seen its labor participation rate drop steadily in recent years – even before the coronavirus pandemic plummeted to new record lows. Income levels in the state of Palmetto also remain well below the national average.

So the founding editor of this news outlet Will Folks has repeatedly editorialized in the past in favor of cutting individual income tax rates, as well as reducing other more regressive taxes. He also encouraged state lawmakers to take steps to diversify their battered tourist economy – and to reduce the size, scope and cost of their undisciplined and irresponsible state government.

Did the legislators hear? No …

They went in the other direction … just like they did when approving a $ 10 billion command the economic disaster known as NukeGate.

Anyway, with Hitt out, several candidates emerged as possible successors. Between them? Tsar of economic development at the University of South Carolina Bill Kirkland, Director of the SC Revenue Department (SCDOR) Hartley Powell and former SC senator Paul Campbell.

Wait … Campbell? It is Campbell?

It is not immediately clear which of these candidates may be McMaster’s primary choice, however, the sources tell us that the governor’s office asked whether the former SCDOR director Rick Reames – a lawyer in Nexsen Pruet – may be interested in returning to the agency he previously led, in case McMaster hires Powell to lead the Commerce.

Whoever gets this job must recognize two things …

First, they must recognize that the way South Carolina “always did” with respect to economic development is not just an abject failure, but inherently unfair to the individual taxpayers and the small businesses that are really responsible for boosting employment and income growth in the state of Palmetto.

Second, they must recognize that crony capitalist alms are no the road to prosperity in the post-Covid-19 economy.

In September, economist at the University of South Carolina Joseph Von Nessen addressed the school’s fortieth annual series of economic perspectives and offered some interesting reflections on the subject. As we noted in a previous post, Von Nessen discussed the extent to which the evolving American workplace presented the State of Palmetto with an opportunity to change its traditional recruitment approach.

“As the work at home phenomenon becomes a permanent part of the business landscape, South Carolina will have to start rethinking its approach to economic development,” said Von Nessen at the time, according to the reporter. Jessica Holdman in The (Charleston, SC) Post and Courier. “Economic development can mean both persuading workers to live in South Carolina and working remotely, as well as recruiting directly from the company.”

Amen for that …

Von Nessen and another teacher from South Carolina Douglas Woodward he argued that the flight of citizens from large cities – whether due to increased urban violence or unsustainable living costs – presented Palmetto with an opportunity to recruit gold.

“I think this is permanent,” said Woodward, according to the Holdman report. “Suddenly, South Carolina has become a very attractive place to live and work.”

We will, It could be … if we had competitive tax rates and better academics / infrastructure (two other policy areas that our founding editor has addressed ad nauseam over the years).

Result? The next secretary of commerce must be a fundamental departure from the current occupant of the position …

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-FITSNews

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Flag: Travis Bell, Columbia SC photographers