Monday, November 07, 2011

Fox News 11: "Saving the California Dream - How Do We Bring Businesses Back To California?"

By Douglas V. Gibbs

California is among the most liberal states in the country, and both residents and businesses are fleeing from this State as fast as they can. The liberal leadership doesn't understand what is going on. They don't understand why businesses would want to leave the Golden State. They are searching for solutions, as they increase taxes, increase regulations, and threaten those that are leaving with exit taxes.

The local Fox television station asked the question: "How do we bring businesses back to California?"

Carl's Jr. Restaurant was used as an example. The successful burger chain has opened over 200 restaurants in Texas, while growth here in California is non-existent. Yet, the business is based here in California. When the owner was asked why, he said that California laws are difficult for businesses, and say to businesses, "How can we stop you?"

He then made a comment that it is easier to open a business in Shanghai than it is in Los Angeles.

The woman doing the report offered a number of possible solutions based on the complaints by business owners, such as fast tracking permits because they said the process in California is painfully long, or the problems with lawsuits in California due to employee protections that go too far - like lawsuits by employees by not getting their breaks.

Environmental regulations were even brought up at one point.

The gentleman in the studio challenged the woman, indicating that the regulations were there for a reason. He also criticized the comparison to Shanghai saying that Shanghai was a bad example because there are no regulations there.

Really?

In Communist China?

And suddenly this guy is an expert on whether or not there are regulations in Shanghai, and he thinks in a communist country there are no regulations to start a private business?

Then, he suggests that we need to start poaching businesses from other States.

And they wonder why this State is in trouble.

Businesses respond to what will be best for their chances to make a profit. That is how capitalism works. Attacking businesses with ridiculous regulations, high taxes, and hoops to hop through that are near impossible to navigate is not exactly the way to create a friendly environment for businesses. And if the environment is hostile, then why the surprise that the businesses are leaving the State?

The only thing that will return these businesses to California is conservatism. Reduced taxes, reduced regulations, and tort reform would be a great start.

-- Political Pistachio Conservative News and Commentary

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