Open for business or closed by culture wars: KY’s struggle between progress and politics | Opinion

Once upon a time, the Republican Party prided itself on being the party of business, championing free markets and policies to attract investment and spur innovation. Today, however, the GOP has largely traded its business-friendly reputation for culture wars that alienate the talent and businesses of the film industry Senate Bill 1 aims to attract.

Nowhere is this more evident than in the “anti-woke” legislation pursued by the Kentucky General Assembly—ranging from restrictions on transgender rights and healthcare to anti-fairness and anti-DEI legislation—that risk damaging Kentucky’s reputation as a welcoming destination. This contradiction exposes an identity crisis within the state’s Republican leadership: Does Kentucky want to be “open for business” or the latest bastion of ideological culture wars?

Building or Burning Bridges

The Kentucky General Assembly is at a crossroads. On one hand, lawmakers eagerly position the Commonwealth as a destination for economic growth and innovation, championing legislation like SB 1, which seeks to attract the “creative class” by creating the Kentucky Film Office within the Economic Development Cabinet. This investment signals that creative industries drive future economic growth, with the aim of making Kentucky more attractive to talent and businesses associated with the motion picture and film industry.

Yet, the legislature advances policies that send the opposite message — pushing restrictive and exclusionary legislation that limits LGBTQ+ rights, weakens diversity and inclusion initiatives, and imposes constraints on education. These policies create an inhospitable climate for the professionals and industries Kentucky hopes to attract. The “creative class”—a term coined by economist Richard Florida to describe highly skilled professionals in technology, science, the arts, academics, and business—thrives in inclusive, forward-thinking environments. States embracing diversity gain a competitive edge, while those mired in ideological battles risk losing out.

This contradiction is already evident in Kentucky, where cities like Louisville, Lexington, and the Northern Kentucky region strive to position themselves as hubs for innovation and creative industries. With the passage of SB 1, lawmakers signal their desire to grow the state’s film and motion picture industry, but their simultaneous push for restrictive social policies threatens to drive away the talent and investment needed to realize that vision. This was arguably made clear when Louisville, despite being one of the finalists, lost its bid to host the prestigious Sundance Film Festival. The decision was likely influenced by Kentucky’s restrictive laws, which contradict the values of respect, equity, and inclusion upheld by Sundance.

The Commonwealth’s leaders must recognize that fostering a climate of openness and inclusivity is not just a moral imperative, but a critical factor in attracting the creativity and investment needed to build a thriving film and arts scene.

The High Cost of Exclusion

Economic evidence shows that Kentucky’s aggressive push for “anti-woke” laws could have long-term financial consequences. North Carolina’s infamous “bathroom bill” (HB 2) led to an estimated $3.76 billion in lost business over a decade due to boycotts by corporations, sporting events, and conventions. PayPal canceled a planned expansion, costing North Carolina 400 high-paying jobs, and the NBA moved its All-Star Game from Charlotte, forcing lawmakers to partially repeal the legislation to stop the economic bleeding. Similarly, Missouri’s anti-DEI policies could cost $2.6 billion annually and 24,000 jobs by 2030 due to reduced corporate investment, tourism, and workforce diversity.

Florida, under Governor Ron DeSantis, also faced fallout from its anti-DEI and “anti-woke” measures. Disney scrapped a planned $1 billion investment in Orlando, which would have brought 2,000 jobs averaging $120,000 in salary. The state’s universities, once a major draw for top-tier faculty and students, lost key faculty members due to restrictions on DEI efforts, diminishing Florida’s educational and research standing.

These examples show a clear pattern: restrictive and exclusionary legislation comes with steep economic costs. At a time when economic competition between states is fiercer than ever, as evidenced by Louisville’s impending loss of the KFC corporate headquarters, Kentucky cannot afford to alienate the companies and professionals SB 1 seeks to attract.

Kentucky at the Crossroads

Kentucky stands at a crossroads. Decisions made during 10-day veto period and the subsequent two-day veto session may determine whether the commonwealth thrives as a competitive, forward-thinking economy or becomes a cautionary tale of self-inflicted stagnation. GOP leadership must decide: Will they uphold Kentucky’s pro-business reputation, or allow ideological battles to undermine progress?

The reality is clear: restrictive and exclusionary legislation harms marginalized groups, deters investment, drives away talent, and will likely weaken Kentucky’s competitiveness. If lawmakers are serious about fostering growth and attracting creative industries, they must abandon these divisive, anti-business policies.

Governor Beshear has an opportunity—and a responsibility—to veto any legislation that threatens Kentucky’s economic future. Kentucky’s business community, city and county leaders, and citizens should demand that lawmakers prioritize prosperity over politics. The message is simple: Stop the economic self-sabotage. Reject the culture wars. Invest in Kentucky’s economic future.

Ken Miller is the former provost and current professor of management at Sullivan University. He is a registered Libertarian. His views are his own and do not necessarily reflect the views of Sullivan University or the Libertarian Party.

This story was originally published March 18, 2025 at 2:24 PM.