Welcome to the February “Green Business” issue of NorthBay biz magazine. Several years ago, we decided to dedicate a cover theme to green business. It was very well received by our readers and advertisers and, if anything, has become an even “hotter” topic today. We believe the terms “environmentally friendly” and “dynamic business marketplace” aren’t mutually exclusive. We’re strong proponents of the idea that what’s good for the environment is also good for business. So please enjoy all the stories, special features and columns this month as NorthBay biz continues its 34-year tradition of serving the best interests of the business community in the North Bay.
Well, the holidays are over, and I can honestly say I did my best to help stimulate the economy. Now, as long as my bailout check from Uncle Sam arrives by February 1, there won’t be any problems. Unlike our politicians in Washington, I promise to provide full disclosure on how I will use my bailout cash. ($35 for perfume for Aunt Wanda, $350 for a Nintendo Wii game console for son Mike, $500 for a case of premium Sonoma County Chardonnay for Aunt Sue—she only likes the good stuff—$2,500 for a glittery bauble for the wife, etc.) See, full disclosure, as opposed to the recipients of the first $350 billion of bailout dough, who seem to be reluctant to divulge how they plan to use this taxpayer-provided windfall. The banks and financial institutions certainly haven’t used it to help homeowners who are losing their homes in record numbers as originally promised. Paulsen, Bernanke, Frank, Dodd and company went into choreographed histrionics predicting credit market apoplexy and the end of the world as we know it unless they were permitted to bestow vats full of money upon certain companies (of their choice) to forestall financial apocalypse. And nothing has changed. Uncertainty still rules. Now the drumbeat is getting louder for another $350 billion to be given away without any strings or accountability. We’re just supposed to trust these same people who helped precipitate the problem in the first place to have the wit, intelligence and character to solve it? I don’t think so. As they say, “fool me once, shame on you, fool me twice and I must be a gullible idiot.”
These bailouts, if given at all, shouldn’t be handouts. They should be loans, secured by equity in the firms given the money. They should include provisions that demand reorganization, transparency, oversight and, most important, repayment. As a condition of the loan, what exactly is the company going to do differently so the problems are fixed and the need for a further infusion of cash is mitigated? It’s past time to demand fiscal responsibility and accountability. It’s past time for the Washington power broker elites to stop the grandstanding with Other People’s Money (OPM). It’s my money and your money, damn it, and I’m sick of seeing it pissed away down just another rat hole.
Now that I’ve found my rhythm, consider these next few items for further proof of the little regard, if not outright disdain, the ruling class holds for the citizens of this state and country. The latest trick being pulled out of the bag locally is to circumvent existing law that requires a two-thirds vote by the state legislature to approve any tax increase or create any new tax by simply terming the “tax” a “fee.” In doing so, the vote threshold required for passage is reduced to a simple majority. The smoke and mirrors crew in Sacramento think that, by playing games with words, they can simply ignore one of the most important provisions of Prop 13, which has been in place for more than 30 years. That takes real chutzpah—or merely a total disregard for the voters’ will. I’ll let you decide which. This attempt to fool the public and make a mockery of existing law by undermining the California Constitution is a perfect example of the level to which the law making process has sunk in California. Economic history is clear: State revenues prosper with financial growth not from tax increases. Without stimulating the business economy, all the tax increases in the world won’t get us out of our current financial morass.
Now the call for more taxes is being echoed by some of the state’s biggest special interest groups. The California Teacher’s Association recently filed an initiative to raise the state sales tax. It’s probably only incidental that, for the fourth year in a row, more people are moving out of California than are moving in. And with them go more of the folks who make up the tax base. As taxes, regulations and business conditions become more onerous, expect the exodus to continue.
Special interests’ insatiable need for ever more favorable treatment drives the legislature to furnish it. Let’s see if I have this figured out. As special interests contribute millions to politicians, the politicians return the favor by granting billions in funding and benefits to the special interests. Quite a nice little “quid pro quo.” Unfortunately, those billions are redistributed from us to them using our tax dollars. This long-standing relationship is especially interesting (tragic, really) in the face of a collapsing economy and the state itself on the brink of bankruptcy. As private sector employees lose their jobs, public sector workers file lawsuits to prevent any loss of even a few weeks’ pay. As private sector companies diminish pension plans or eliminate them completely, public sector employees insist that taxpayers ensure their pensions are paid in full. In just over the past 18 months, California’s economy has forced private sector employers to layoff more than 200,000 employees, while the state government has added 39,000 employees.
Once upon a time, California was the place where people flocked to chase their dreams. Now it’s becoming a place to flee before nightmares come true.
Much more to say, but I’m out of space. So, that’s it for now. Enjoy this month’s magazine.
