Sen. Johnny Key: Economic Policies, Not Social Policies, Should Guide Economic Development

Editor’s note: This guest commentary, written by State Sen. Johnny Key (R-Mountain Home) is part of a point-counterpoint series regarding the business impact of same-sex marriage laws. It appeared in the most recent issue of Talk Business Arkansas magazine, which you can access here.

In its recent decision on the Federal Defense of Marriage Act, the U.S. Supreme Court left the nation with many unanswered legal questions, and certainly more legal challenges, on the issue of marriage.

Defenders of traditional marriage obviously took the biggest loss. The win for those who seek to redefine marriage, however, was not as clear-cut as they would have us think.

While the Court determined that DOMA violated the Fifth Amendment because it placed restrictions on Federal benefits afforded same-sex couples, it did not address how marriage was defined by the respective states. As Justice Scalia said in his dissent, “The Court has cheated both sides, robbing the winners of an honest victory, and the losers of the peace that comes from a fair defeat. We owed both of them better.”

The ripple effect of this decision hit Arkansas within weeks, but the most surprising ripple came from our state’s top economic development official. In voicing his personal support for same-sex marriage, Arkansas Economic Development Commission director Grant Tennille asserted that by allowing same-sex marriage in Arkansas, we would have an advantage when competing with other states for job growth and business expansion. I consider Grant a friend and I have been pleased with his work at the helm of AEDC, but this pronouncement took me by surprise. I am sure that it also came as a shock to the 75% of the voters who in 2004 made the traditional definition of marriage part of the Arkansas Constitution.

Mounting evidence demonstrates that it is tax and economic policy, not social policy, that is driving economic growth in the states.

Our nation is experiencing a population shift to the South, and the economic power is shifting along with the population. In his book How Money Walks, author Travis H. Brown presents startling figures on the amount of wealth that has left, and continues to leave, high-tax ‘blue’ states like California, Illinois, and New York, while low-tax ‘red’ states like Texas and Florida are experiencing tremendous economic gain. Other states are seeing the trend and taking action. Kansas and North Carolina have recently enacted pro-growth tax reforms that will make them more attractive as individuals and businesses seek to escape the high-tax states.

While a state’s tax and economic policy is a key factor that can affect its economic growth or decline, the impact of social policy is not irrelevant and cannot be dismissed.

Hard-working men and women in other states are seeking to escape the harsh economic climate in which they live and work, but they are also tired of the Leftist policies that their tax dollars are supporting. Again comparing ‘blue’ and ‘red’ states, California, Illinois, and New York have all legalized gay marriage, either through legislation or court edicts, while Florida and Texas, like Arkansas, adhere to the traditional definition of marriage.

Some of the modern-day ‘migrants’ from California live in my Senate district. I have met several of them who sold their California homes for a handsome profit and bought a ‘dream home’ in northern Arkansas. In a reversal of the migration path depicted in Steinbeck’s classic, The Grapes of Wrath, these new Arkansans wanted to get away from California because they saw better opportunities elsewhere.

Some of them are retired, others purchased existing businesses, others simply relocated their businesses. They appreciate Southern courtesy, the laid-back pace, and the natural beauty of Arkansas. And, yes, they like that the people of Arkansas stand firm on issues of social importance such as traditional marriage.

There are more of them out there, just waiting for the right opportunity to pack up and head out. They humanize the concept of ‘how money walks.’ Taking their families and hard-earned wealth, they will establish themselves in a state that reflects their economic and social philosophy.

But it isn’t just happening in California. People in Midwestern and Northeastern states are looking southward as well, and Arkansas is an attractive destination for these modern migrants.

So why should we adopt, in the name of economic development, any social policy from states that are experiencing an exodus of people and economic power, especially when that policy is opposed by such a large majority in a state whose motto is “Regnat Populus – The People Rule”?

We should not.

To remain competitive, we must adopt tax and economic policies that have demonstrated success in attracting jobs and encouraging economic growth. Reducing the tax and regulatory burdens on hard-working Arkansans must be our goal.

Conservative members of the General Assembly demonstrated a commitment to that goal in the 2013 regular session, and we stand ready to work with the next governor to advance those pro-growth policies in the future.