This is the title I chose for my personal blog, which is meant to give me an outlet for one of my favorite crafts – writing – plus to use an image from my favorite sport, golf. Out of college, my first job was as a reporter for the Daily Astorian in Astoria, Oregon, and I went on from there to practice writing in all of my professional positions, including as press secretary in Washington, D.C. for a Democrat Congressman from Oregon (Les AuCoin), as an Oregon state government manager in Salem and Portland, as press secretary for Oregon’s last Republican governor (Vic Atiyeh), and as a private sector lobbyist. This blog also allows me to link another favorite pastime – politics and the art of developing public policy – to what I write. I could have called this blog “Middle Ground,” for that is what I long for in both politics and golf. The middle ground is often where the best public policy decisions lie. And it is where you want to be on a golf course.
In my years as a lobbyist, the question in this blog headline sometimes was answered by “yes.”
Too simplistic? Probably.
But, at the same time, I believe there is a solid rationale for the “yes” answer.
It is this: Experience with having to live within a budget in a business is a solid credential for political office holders, as well as for those who manage state agencies.
Yet, most legislators and don’t have it.
Neither do many of those who work for state agencies. They have never had to live within a budget, or, to put it another way, generate the revenue to fund their programs. Many just count on getting more for their operations.
Do they need more? Perhaps. But I submit they also ought to be required to earn the “more” with a quality, revenue-sensitive operation.
A resident of Orange, California, wrote about this subject in a letter to the editor of the Wall Street Journal.
Here is what it said:
“Not Enough Politicians Come From Business
“California will continue to drive businesses to other states until we replace the utopian idealists in the State Legislature.
“Why does the California legislature propose so many laws that make no economic sense?
“Maybe because a majority of our representatives have never run a business?
“Assemblywoman Cristina Garcia, who is proposing the 32-hour workweek, was an activist before taking office. Out of 58 Democrats in the California Assembly, at least a dozen have a similar background. I found only four Democrats who ran businesses before taking office. Attorneys, teachers and government administrators dominate the rest.
“Our local paper invited two columnists to present arguments for and against the workweek proposal. The one who argued against it, to my surprise, is the most liberal columnist. He spent a year running a small business.
“California will continue to drive businesses to other states until we replace the utopian idealists in the state legislature with people who understand economics and what drives jobs and higher tax revenues.”
Here are excerpts from other letters to the editor:
Letter #1/
“Working for a tech company during the Clinton years, I participated in government affairs, meeting with members of the House, Senate and administration. Everyone I met was highly intelligent, well-educated, and well-intentioned. The problem? As with the current administration, none of them had ever worked in the private sector.
“Consequently, they didn’t understand the role and value of private markets or basic economics, including supply and demand. To them, if the program failed, the policy was beyond question, so the only reason for failure must be that the budget wasn’t large enough.”
Letter #2/
“Usually, the best political appointees have a mix of some government experience and a lot of private-sector experience. They understand how government works and the effects its actions have on the private sector.”
Letter #3/
“Your editorial reminds me of a stunning admission by George McGovern in his famous article in the Journal (“A Politician’s Dream is a Businessman’s Nightmare,” Manager’s Journal, June 1, 1992). After a lifetime in Congress, the 1972 Democrat presidential candidate earned a small fortune in post-retirement speeches and in 1988 purchased an inn in Stratford, Connecticut. It went bankrupt in 1990 and closed the next year.
“Ironically, the liberal icon blamed his business failure on suffocating federal, state and local regulations. Although passed with good intentions — to help employees, protect the environment and so forth — they were bad for business, McGovern acknowledged in his op-ed.
“’I also wish,’ he confessed, ‘that during the years I was in public office, I had had this firsthand experience about the difficulties business people face every day. That knowledge would have made me a better U.S. senator and a more understanding presidential contender.’”]
Having returned a several months ago from California where my wife and I spent five months this winter, we heard a lot about the State of California driving business away, even though state government there depends on tax revenue, including from the businesses heading east.
One of the most famous departures: Tesla.
Here is the way a friend of mine from California wrote about the issue:
“As COVID descended on California, economies began to shut down and a debate raged over what businesses were ‘essential.’ A rather public dialogue took place between Elon Musk, the founder of Tesla, and Alameda County authorities regarding the forced shutdown of the Tesla plant in Fremont.
“Elon Musk rather calmly threatened to leave the state. The governor was dismissive, saying ‘Elon Musk isn’t leaving California anytime soon!’ Six months later, Musk left California.
“Musk has sold (or is in process of selling) all his personal real estate in the state. He is now a resident of the State of Texas. He has also moved his philanthropic foundation to Texas. One of his companies, Space X, is based in Texas, and Tesla is building a new plant outside Austin, Texas.
“There is no way to know for sure what Musk paid in California state taxes, but it would surprise no one if he paid the most of any individual resident. Now, he will be a much happier resident of Texas and pay a small fraction of the taxes that California previously squeezed out of him and his employees.”
Beyond Tesla, Hewlett Packard Enterprise, and Oracle both have announced they intend to move their headquarters to Texas, with 13 other potential moves in the pipeline.
California will be worse off because of these corporate departures.
The fact is that JOBS matter, both for the confidence and fortitude they provide to those who have them, plus the revenue the job holders, not to mention the corporations themselves, provide to fund governments.
And, what’s often given short shrift in all of this is short-hand but true phrase – job holders pay taxes.
So, I say, governments should cultivate a business-friendly attitude. Sure, hold business to high standards, but don’t make enemies of those who provide jobs and pay taxes.
The State of California is learning this lesson the hard way. It may be possible that the State of Oregon is following the lead, though a lot could depend on who wins the next governor’s race.