Sunday, October 18, 2009

When U.S. economy recovers, will California be left behind?

California lost one of its Fortune 500 companies the other day when Science Applications International moved its headquarters from San Diego to McLean, Va.

The announcement came not long after Toyota announced that it would shut down California's last auto assembly plant, and the two corporate moves provided new fodder for the never-ending debate over California's business climate.

The debate has taken on a sharp edge during the worst recession since the Great Depression, raising fears that as the rest of the nation recovers, we won't. http://www.sacbee.com/capitolandcalifornia/story/2261042.html

For those of us living in California this is something we already know, but unfortunately the rest of the nation will feel the effects of California’s dysfunctional system of governing. We are witnessing the California effect in the policies emanating from Washington as it continues California’s anti-business climate, even though it professes its economic growth policy. Too often rhetoric doesn’t match reality, with every legislative bill that comes from Washington it consistently makes it harder for businesses to operate in this country. Too often we hamstring business by passing confusing regulation, conflicting environmental legislation, passing pro-labor laws that have an unintended consequence of stifling economic growth. One only has to look to the auto industry and our manufacturing base as examples. If Washington follows California’s example then economic growth will fizzle and retract to unimaginable levels.

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