Published April 27, 2009

South Carolina should take advantage of the economic downturn by positioning itself as an economic development alternative to other states. It can achieve this by instituting balanced tax reform and fully aligning the state’s identity with its natural resources.

This recession potentially puts the state on a level playing field with larger, richer and previously more competitive states because the economic downturn has hit everyone in generally the same financial areas.

It’s bad here, but not as bad as it is in some places. Take Ohio, Florida, Arizona, Nevada and California out of the mix, and the housing crisis is much less desperate. Subprime mortgages and the resulting mortgage-backed securities have crippled the nation’s credit markets, and the number of resulting foreclosures likely will continue to keep things down for a while.

Many things are wrong with South Carolina and need to be fixed. We have traditionally low wages, poor education and a state government that operates under a Reconstruction-era constitution designed to fragment power across the Legislature.

The state also has a lot to attract companies: low wages, relatively little union activity, pro-business municipalities that think beyond their immediate needs and pristine natural resources.

To capitalize on this effectively, we need thoughtful, balanced tax reform that gives our leaders the ability to make conscientious, long-term decisions without having to scramble when there is an economic dip. The latest tax-reform efforts were based solely on cutting taxes and propping up state government in too few areas. Spread the tax burden around, allow business and industry to thrive, and the tax base grows along with it.

That will take time and political wrangling, but South Carolina’s natural resources are waiting right now to be branded and marketed in an effort that goes beyond ecotourism.

Embracing a sustainable, emerging economy lets us reimagine the state within our existing, already green quality of life. Whether wind farms spin power to local industries or farmlands give rise to more locally driven efforts to supply produce, green living has been our specialty for hundreds of years. All we need to do is point it out.