A Lesson on Regulations from California to Federal Agencies

Governor Schwarzenegger’s remarks outlining his “Jobs Initiative” Monday at Ace Clearwater in Torrance elicited much good commentary about the state’s business climate and manufacturing.

Along with highlighting the importance of jobs training, Jack Stewart of the California Manufacturers and Technology Association also emphasized the need for regulatory reform in the state. He said:

[The] Governor mentioned the importance of regulatory reform. I echo that. California has now accumulated a very large body of California-only regulations that make it very, very difficult for California manufacturers to compete in this global economy.

So I think what we can do this year is, at no cost at all to the state, very low cost — it may cause the legislature to work a little harder — but look at reforming our regulatory system so there is certainty in our marketplace. The fact is that uncertainty is the hobgoblin of innovation and creativity and economic growth. So I think that’s something we can do at very low cost; reform, streamline our regulatory process to make California more competitive with the rest of the nation. We have the ability to do that.

We look forward to engaging with the legislature and the Governor this year to reduce those just awful unemployment numbers and bring California back to the golden years when manufacturers created middle class jobs, created wealth, created growth throughout the state.

Last week, Jack issued a statement urging the governor to go even further in the way of regulatory relief. That’s the right direction, removing burdens to make the state more competititve. Federal regulators should take note. The EPA and other empowered agencies need only look at the decline of California’s economy to witness the damage that overregulation can do to a business climate and people.

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