California's Anti-Business Policies Crash Incomes

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Wiley
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California's Anti-Business Policies Crash Incomes

Post by Wiley » Wed Dec 14, 2011 8:41 pm

DEC. 11, 2011

CA Anti-Biz Policies Crash Incomes

By CHRISS STREET - Special to Cal Watchdog

A new study by the Public Policy Institute of California, a non-partisan think tank, confirmed that during the 2007-09 recession, every income bracket in California lost income faster than the equivalent brackets in the rest of the United States. Even more disturbing, all but the top 25 percent of earners now make less than equivalent income classes in other states.

Once known as a jobs magnet for its sunny climate, world-class universities and burgeoning high-tech opportunities, California has been transformed into a toxic anti-business state that works hard at drive businesses away.

From 2007, when the recession began, through its end in 2009, family incomes across all income classes dropped by more than 5 percent. But instead of going up in the recovery, they continued to plummet by another 6 percent in 2010.

The declines weren’t spread evenly across the income classes. Families with incomes in the top 10 percent saw their family incomes decline 5 percent. But the bottom 10 percent of California’s poorest families saw their incomes plummet by 21 percent.

In surveys, business executives regularly call California one of the country’s most toxic business environments and one of the least likely places to open or expand a new company. Many firms still headquartered in California consciously refuse to expand their workforce. Brutalized by the bursting of the housing bubble and currently suffering an unemployment rate of 11.7 percent, almost 3 percentage points above the national average, California family incomes continue to rapidly lose ground.

Grim Economy

With already the lowest credit rating of any state in the nation, Controller John Chiang just released his monthly financial report covering California’s cash balance, receipts and disbursements for November. It demonstrated the state’s grim economic circumstances:

“After accounting for November revenues, total year-to-date general fund revenues are now behind the budget’s estimates by $1 billion, but expenditures for the year are over projections by $1.95 billion…. The combined current year cash deficit stands at $21.5 billion.”

The resolve to turn California against business started with Gov. Jerry Brown when he first was elected back in 1974. Brown saw government’s job as restraining growth, limiting development and expanding environmental regulations. In 1977, Time Magazine declared “the California of the 60s, a mystical land of abundance and affluence, vanished sometime in the 70s.”

Sixteeen years after Brown left office in 1983, Gov. Gray Davis, Brown’s chief of staff during the 1970s, became governor in 1999. Davis signed 33 bills that the state’s Chamber of Commerce called “job killers.”

Perhaps the most devastating was a restructure of workers’ compensation, which drove an increase in payments per worker from $2.30 per $100 of payroll to $6.44. That tripled the annual employment costs to business from $9 billion to $25 billion.

Four years later, voters recalled Davis and replaced him with Arnold Schwarzenegger. Unfortunately, in 2006 the “governator” signed the AB 32, Global Warming Solutions Act of 2006 that critics mourn will raise electricity rates in California by another 20 percent.

Toxic Business Environment

In a 2011 poll of various California business groups, 82 percent of executives and owners said that if they weren’t already in the state, they would not consider starting up here. And 64 percent said the main reason they stayed in California was that it was tough to relocate their particular kind of business.

For several years in a row, California has ranked dead last in the Chief Executive magazine’s poll about the business environment of states in the U.S.

Limousine liberals, rich environmentalists, union bosses and their pet politicians that comprise much of the top 25 percent of income earners in California have not suffered devastating income declines in the recent recession.

Responding to the Chief Executive poll, Steve Smith of the Labor Federation of California charged that it represented “little more than corporate honchos throwing around their weight to try to further strip working people of important protections that improve lives.” But for the 75 percent of Californians not at the top income levels, California’s anti-business environment continues to inflict real pain on the lives of workers and their families.

Feel free to forward this Op Ed and follow Chriss Street’s Blog at http://www.econservativenews.com

Thank you for all the success of Chriss Street’s latest book, “The Third Way,” now available on: http://www.amazon.com.

http://www.calwatchdog.com/2011/12/10/c ... dle-class/
"If you love me you've got to help me pass this bill." - Barak Obama

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Wabash
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Re: California's Anti-Business Policies Crash Incomes

Post by Wabash » Thu Dec 15, 2011 4:22 am

Yeah. Chriss Street is real credible on fiscal matters.

Pay no attention to the $7M judgement against him resulting from him being a trustee of a company going BK.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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sbayhills
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Re: California's Anti-Business Policies Crash Incomes

Post by sbayhills » Thu Dec 15, 2011 7:38 am

Wabash wrote:Yeah. Chriss Street is real credible on fiscal matters.

Pay no attention to the $7M judgement against him resulting from him being a trustee of a company going BK.
You complaining about the credibility of anyone is hypocritical.

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sbayhills
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Re: California's Anti-Business Policies Crash Incomes

Post by sbayhills » Thu Dec 15, 2011 7:40 am

How anyone could be so blind as to not see the toxic business environment in California, and actually carry the water for those responsible for this mess is beyond credibility.

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Wabash
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Re: California's Anti-Business Policies Crash Incomes

Post by Wabash » Thu Dec 15, 2011 9:50 am

sbayhills wrote:How anyone could be so blind as to not see the toxic business environment in California, and actually carry the water for those responsible for this mess is beyond credibility.
Must be why CA is the most significant economic engine in the US. Those toxic business regulations must be holding everyone else back.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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