The
White House, as part of a broad policy review, has
asked business leaders to "identify specific regulations that they
believe are obstacles to job-creating private investment."
The
Administration is responding to an increasingly forceful chorus of criticism
from national business organizations and individual companies, including a comprehensive,
54-page catalog of legislation and regulations prepared by the Business
Roundtable and Business Council.
The organizations claim that these measures’
"cumulative effect will help defeat the objectives we all share –
reducing unemployment, improving the competitiveness of U.S. companies, and
creating an environment that fosters long-term economic growth."
Sound
familiar? At least someone in Washington is listening.
In
Sacramento, it is business as usual in the business of legislating, whose governing
philosophy seems to believe growth in government spending can be accomplished
without growth in the economy.
Yes,
it is an election year. But in the face of a persistent recession, unacceptable
unemployment, and a budget deadlock, what better time to take an honest look at
the shackles placed on the California economy by harmful economic policies and
an unfriendly investment climate?
Just
today, CNBC released its annual
survey of America’s Top States for Business. California ranked 49th
and 48th, respectively, in "business friendliness" and "cost
of doing business." Our overall ranking was salvaged somewhat by factors
that have little to do with state policy – access to venture capital and the
environment for technology and innovation. But where state officials can make a
difference, they have – for the worse.
The
Legislature and Administration should take a leaf from the President’s
book, and at least make an honest inquiry about the sources of our economic malaise
and why our recovery is moribund. Recently, CalChamber released a comprehensive summary
to at least get the ball rolling. The agenda identified specific policy changes
in five areas to hasten economic recovery:
- Reducing the regulatory and
litigation costs of hiring new employees and keeping them on the job; -
Ensuring certainty and stability of private investments in plants,
equipment and technology, including a fair and predictable tax structure; -
Investing in public works that provide the backbone for economic
growth; -
Providing a world-class education to prepare high school students
for work or college, and supporting public colleges and universities in their
student preparation and technology innovation missions; and -
Ensuring transparency and accountability at all levels of government,
and fostering private enterprise and markets.
California’s
rebound will depend on more than just watching the clock and hoping to get
swept up in a national recovery.