Economic diversification

There’s much to like about Nevada’s first-ever comprehensive economic diversification plan. With the good, however, comes the possibility that its ambitious goals and framework could lead to government overreach.

It will be incumbent upon its backers and the state’s business community to make sure new jobs are not created at the expense of existing ones.

Gov. Brian Sandoval released the long-awaited, 64-page report, “Moving Nevada Forward,” on Tuesday. Its most important recommendation is one that benefits both current and potential employers: the removal of obstacles to business growth and expansion through the study of the regulatory climate. After all, if Nevada can’t maintain a business environment that ensures the survival of current enterprises, why would any company invest the resources needed to launch operations here?

Too much direct assistance through subsidies or other incentives, however, has the net effect of picking winners and losers. While the report identifies several industries as preferred targets for greater diversification — health care, manufacturing and logistics among them — government forays into venture capitalism have a consistently dismal track record at virtually all levels.

The clean energy industry, for example, exists only because of massive federal assistance, and the “green” jobs politicians have been touting for years have never materialized in the numbers promised. Does Nevada really want to put even more effort into luring businesses that can’t stand on their own?

And a planned $10 million “catalyst fund” to aid in the expansion of existing businesses could very easily be influenced by political considerations.

“The plan is not intended to be a prescription telling regions what to do,” said Steve Hill, executive director of the Governor’s Office of Economic Development. “It will bring us together to structure economic development in a way that’s collaborative.”

The report is full of small steps and big benchmarks, and it contains a 32-item checklist. A lot of work and thought has been put into it, with the end goal being the creation of 50,000 jobs by 2014. The architects of this plan have high expectations and ambition, two qualities Nevada needs more of, not less.

One other thing could greatly help Nevada’s economic environment and diversification efforts: an end to the open hostility certain labor groups demonstrate toward businesses with their relentless calls for higher taxes and their consistent opposition to needed government reforms.

There could be as many as half a dozen questions on November’s ballot seeking to raise existing taxes and create new ones on businesses.

Economic growth and diversification is a rising tide that lifts all boats. Unions would be wise to remember that.