Sunday, June 05, 2011

Socialism and Overregulation Are Antithetical To A Good Economy

In this country, it's hard to get more overregulated than California:
While the Lone Star State may not be perfect—many leaders would like to see improvements in its education system—it is Periclean Athens compared to California in the eyes of the 550 CEOs surveyed for Chief Executive‘s seventh annual report on the best and worst states in which to do business. It’s the seventh time in seven years running that Texas has led the states, and the seventh year California—to no one’s great surprise—ranked as worst state...

Not surprisingly, states with punitive tax and regulatory regimes are punished with lower rankings, and this can offset even positive scores on quality of living environment. While state incentives are always welcome, what CEOs often seek are areas with consistent policies and regulations that allow them to plan, as well as intangible factors such as a state’s overall attitude toward business and the work ethic of its population.
If you claim to want a good economy with lots of jobs, you should probably listen when hundreds of CEOs tell you year after year after year that your government isn't business-friendly--that's if you really want a good economy with lots of jobs.

Hat tip to NewsAlert.

Update, 6/6/2011: Even World Bank Research Shows Economic Liberty Is Better than Government Dependency

14 comments:

Anonymous said...

Apple and Google seem to be doing OK.

Darren said...

What if they could do *better*?

Gawd, you serial regulators just can't accept reality.

mazenko said...

What's great for stockholder and CEOs is not necessarily good for the community at large. I'm sure GoldmanSachs would love more deregulation of derivatives - do you think that's a good idea?

Anonymous said...

Which single corporation in the tech sector is doing better than Apple? #Reality.

Ellen K said...

Shhhhhhh. We have enough imports as it is. Frankly while our jobs situations is somewhat better, tax revenues are down because property values are down. That means across the board cuts for schools. Personally, I think there's a great deal of trimming that could be done which probably won't be done. The big five-A schools will still have ten or more assistant coaches and the bands will still have four assistant band directors.

Darren said...

Anonymous, your point is stupid. Thank you for playing.

allen (in Michigan) said...

At this point in history it's a tribute to human intransigence that anyone's still got any faith in the regulatory state.

The nations that were most purely socialist have ceased to exist, thrown away with increasing enthusiasm their claim to socialism or become pathetic backwaters. Even the nations of a distinctly paler shade of pink have, with some reluctance and trepidation, begun to shed some of the trappings of socialism.

It's becoming increasingly obvious that the only positive result of an increasingly-regulated economy is an army of smiling regulators.

Thanks but I'll take my regulators few and worried.

MikeAT said...

 allen (in Michigan) 

To steal the phrase from General Patton, "faith in the regulatory state" is a monument to the stupidity of man.

MikeAT said...

Ellen K

Do you have a diversity consultant or multi-cultural specialist, or other such oxygen thief you can get off the payroll?

MikeAT said...

Darren

What really disgust me is what California has to bring it back and will not use.   It has massive amounts of arable lands, minerals of all times, temperate climate, multiple ports and a decent road system for transport.  The idiots have shut down the Central Valley for a lizard, don't try and get oil out of the state's multiple fields and funding for roads from fuel taxes was pissed away...kinda like the Federal Highway Trust Fund.

And if one man won't get it right, it is Jerry Brown.  Damn.

abellia said...

The CEOs of major US corporations are sitting on 2T of cash. There is nothing stopping them from hiring today. They worry that they won't make more money on their "investment" because demand is slack. Demand is weak because people aren't earning much and are in the process of paying down accumulated debt. The economy isn't good unless people are working in fulfilling jobs, numbers be damned.

Don't speak of things that you appear not to understand.

Darren said...

Everything you said except your last sentence supports my thesis. I tire of idiots telling me I don't understand what is so clear.

MikeAT said...

abellia

Yes, major corporations are sitting on an ocean of cash and they will not invest it anywhere in the US right now because they are unsure of what the rules are. They don't have any idea what it will cost to hire people, what the taxes will be come 2013, will Obamacare still be around, will Cap and Tax come in, among other issues.Until those questions are answered they will be no expansion. And you seem to be offended the companies are worried they won't make money. Here is some reality...that is the purpose of any company. To make money for it's owners be they a couple with restaurant or GM.

If anyone is not understanding something it is you abellia. Your knowledge of basic economics appears to be lacking.

Ellen K said...

@MikeAT
Not generally yet. But as companies move in from other places they bring the legacy o those non job and agencies with them. Like a bug infestation those liberal ideas can creep in with the luggage. We have our weekly "green" reports from media the beaming children planting sustainable plants blah blah blah....I only hope that Texas harsh climate turns them away