America in 2050: Will Illinois stack up?

by Emily Dietrich Imagine what Illinois will look like in 2050. The social and economic fabric of the country will definitely have changed. By then, the United States will have an additional 100 million people. Noted futurist and author Joel Kotkin has given this a lot of thought. Recently, he led a discussion at Illinois Policy Institute....

by Emily Dietrich

Imagine what Illinois will look like in 2050. The social and economic fabric of the country will definitely have changed. By then, the United States will have an additional 100 million people.

Noted futurist and author Joel Kotkin has given this a lot of thought. Recently, he led a discussion at Illinois Policy Institute. He noted several shortcomings Illinois has suffered in the last decade. But more importantly, he highlighted Illinois’ immense potential for opportunity and growth in the years to come.

Kotkin’s central theme was a charge to Illinois residents and policy-makers alike – utilize Illinois’ competitive edge to make the state prosperous. Illinois has a major metropolis, a booming suburban landscape, and rich rural farmland; it’s time to put the state’s resources to good use.

Changing Illinois’ economic trajectory takes some work. The foundation for change is laid by our public policies. Kotkin enumerated specific public policy changes that Illinois should institute to brighten its economic and social landscape.

For starters, Illinois has to stop driving its residents and businesses out of state. Similar to theInstitute’s report, “Leaving Illinois: An Exodus of People and Money,” Kotkin revealed that Illinois ranked 49th in out-migration in 2010. A state where its residents flee is not a successful state.

So how do we retain residents and allow businesses to thrive? It all starts by cultivating a strong private sector. Kotkin believes education undergirds the entire social and economic system. He points to the success of charter schools in New Orleans and advocates for school reform in Illinois. Reforming our school system would strengthen our communities and develop workers to meet today’s market challenges.

But middle class workers struggle in Illinois. Kotkin said that Illinois’ job base is becoming increasingly bifurcated, “We’ve got to fill the middle rank of jobs – the good blue-collar jobs, the good white-collar middle-management jobs.” If Illinois continues to eliminate jobs for the middle and working classes, the state will look increasingly uncompetitive compared to its neighbors. Instead, we need to increase job opportunities for these workers to drive both their and the state’s success.

Last, Illinois needs to encourage entrepreneurial activities. Illinois can’t afford to continue picking winners and losers by dolling out special tax subsidies to large businesses with lobbying clout. Kotkin argues that this crony capitalist arrangement harms in-state start-ups. According to recent Bloomberg reports, start-ups are the engine of job creation. Illinois needs a low, broad tax base and reduced regulatory burdens so start-ups can drive job growth in the state.

The next few years will be key for Illinois’ economic future. Illinois must compete with the rest of the Midwest for businesses and residents. To spur job creation, Illinois needs to empower its private sector to encourage a vibrant job community that breeds innovation, growth and development. Starting with the basics  – such as creating an effective education system and securing an efficient and pro-businesses tax and regulatory environment – allows all in Illinois to flourish.