This article was originally published on our Forbes blog, which you can visit here.
Tuesday could be a pivotal moment in U.S. political and economic history. There is a critical election in Wisconsin where residents are attempting to recall governor Scott Walker. In the balance lies the fate of small and independent business owners who are always rooting for small government, a balanced budget and lower taxes.
Governor Walker, in taking an adverse position towards unions in Wisconsin, has forced union workers to provide more money for health benefits and retirement plans, reduced the burden on taxpayers, as well as reduced Wisconsin’s ability to borrow. Walker has been able to balance a budget in his first year in office and added jobs to Wisconsin’s economy. If Walker wins, this election will be viewed as evidence that voters, despite their reluctance to having reduced benefits and entitlement payments for all, would prefer the long term benefits of fiscal discipline and private sector growth to create jobs.
This vote can also be a precursor to the presidential election and many other gubernatorial races. We have seen other states, like Ohio and Indiana, follow a similar course in balancing budgets the way Scott Walker has done in Wisconsin, with similar positive results. As a small business owner, our biggest fears are public and entitlement spending and growing debt will outstrip the goal of wealth creation through entrepreneurship and lead to confiscation of wealth through higher taxes and an irreversible course of higher debt.
Independent business owners – stay tuned for Tuesday’s watershed results!