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Commentary: California Needs Real Commitment to Job Creation

 

(February 17, 2010) There has been much talk recently about the need for California to make job creation its number one priority. I couldn't agree more. However, some of the things I’ve been hearing from those who just joined the “jobs, jobs, jobs” bandwagon would be amusing were they not so troubling. 

I certainly welcome the new interest and rhetoric about jobs by some of California’s elected officials. But let’s be clear:  Private sector jobs create the revenue for public sector jobs and programs, not the other way around.  More protections for government workers at the expense of those employed – or already unemployed -- in the private sector will only create further heartache and hardship in our state. 

Last week, as they rallied with government employee unions, some at the State Capitol made a renewed promise to work to reduce the 2/3 vote requirement for California’s budgets and tax increases.  This, they said, will help our economy and our job climate. Unfortunately, more spent on government jobs at the expense of private sector jobs will only make things worse!  Raising taxes and fees will kill both private and public sector jobs.  

Another recent proposal considered in the Legislature would have placed an oppressive burden on businesses for little, if any, return. Mandating withholding for independent contractors will destroy California jobs.  After layers of recent tax increases and accelerations, if resurrected, this plan could be the last straw for many of California’s already cash-strapped companies. 

Now that we all seem to agree that more jobs is the answer, it is time for our legislators to support real efforts to create jobs. The time has long passed to reduce government imposed costs and regulations so that businesses can invest in our economy and hire workers. Moving forward, California's leaders must create and seize economic development opportunities, reduce the cost and risk of keeping and growing jobs, and jump-start public and private infrastructure and commercial projects.  As they consider any new legislation or regulation, our leaders must fully and realistically assess the impacts of any proposed mandate on the private sector and kill any bill that increases costs. We've got to unleash the ability of business in California to invest and hire workers. We need common sense action now! 

Allan Zaremberg is president and chief executive officer of the California Chamber of Commerce.


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