In a way, it’s kind of a shame. Imagine what Arnold Schwarzenegger could have done about California’s hostility towards business if he had, oh, perhaps, run for public office? If he had spent the last seven years in a position like Governor, why, he could have fought to improve the business climate in the Golden State and perhaps saved California from one of the highest unemployment rates in the nation, a rapidly-declining tax base, and …
What? He’s been Governor since 2003? Oh.
After seven years in office, it took a personal relationship with The Salad Bowl’s CEO for Schwarzenegger to find out that his state is driving business away? I’d say the surprising thing is that Governor Schwarzenegger admits it.
He also mixes apples and oranges a bit in this case, too. While California’s taxes are too high and block more investment, the problem Schwarzenegger describes in this clip is overregulation, not taxation (and arbitrary enforcement, too). The regulatory burden on California business is so immense, and so layered, that businesses like The Salad Bowl have to have a huge profit upside to bother entering the market. The key point here made by Schwarzenegger (and good for him for recognizing it) is that if it takes California eight months to approve a business for opening while only 30 days in Colorado and 22 days in Texas, businesses will invest first in those states and put California far down their list — especially when considering the high taxes California also imposes along with its regulatory burdens.
Maybe California should elect a Governor in this cycle who already knows this — or who at least can figure it out in less than 7 years. Which would that be: the former CEO of a multi-billion dollar corporation, or the former two-term governor who helped create the regulatory burdens and spent his entire life drawing checks from taxpayers? (via The Right Scoop)