The Current

Unintended consequences

(Editor's note: Jim still has a lot he wants to say, but Gene enjoyed the blogging experience so much, he's back again...)

Lobbying can be a strange and interesting business. We fight like crazy for our issues but rarely does it get personal. We typically respect other advocates (and often they're friends) who hold positions different from ours. We know that simply because someone else disagrees with us it doesn't make them bad...

However, there was an unfortunate incident recently on an issue of interest to many Chamber members. The issue is the "California Low Emission Vehicle Program." It has to do with the kind of car Pennsylvanians should drive in order to meet what is required of us to clean our air. There are legitimate questions in the debate, such as how much it will cost, whether we should cede control over our vehicle program to California, the ramifications on other sources if we don't implement this program, etc.

An environmental group pushing for PA to adopt the CA LEV standards put out a cartoon on its website attacking AAA for not supporting the program. When I first saw the cartoon, I thought it was sophomoric and that it trivialized an important public policy issue. After talking to one of the AAA people involved in the issue, I went back and looked at the video and became more disturbed.

Entitled "AAA Monkeys," it shows one of them taking an inhaler away from a young boy and substituting what appears to be can of whipped cream.  I understand that inhalant abuse is an unfortunate occurance among our youth. Is this environmental group trying to say that AAA is encouraging drug abuse?

More disturbing though is another scene from the "cartoon" that shows one of the cartoon characters firing a weapon at a person looking to buy a car. The weapon appears to be a type of "rocket propelled grenade" or RPG, the type of weapon used by terorrists against our troops.

The person from AAA who talked to me about this was a career military person. His wife's brother was killed last year while serving in Iraq. He told me when he looks at that cartoon, he thinks of what happened to his family member.

I'm certainly not saying this environmental group knew about this situation when they created their "cartoon." I am saying that when we attempt to trivialize critical issues and demonize people who might disagree with us, there can be unintended consequences.

I really don't want to provide the website name because I don't want to give this group any more publicity. If you call me, I'll be happy to discuss it and direct you there.

Healthy Dose of Skepticism

Jim? Has anyone seen Jim? He seems to be missing in action. He was last seen running towards Senator Brightbill's office mumbling something about the minumum wage.  If you see him, tell him his blog editor is looking for him.

That's OK though, we have a special guest blogger today.

Meet Kirk Liddell, CEO of Irex Corporation in Lancaster and the PA Chamber's First Vice Chair. He'd like your undivided attention on the results of this year's economic survey,  so listen up...

As a business owner who continues to be concerned about our economy, our ability to create jobs and our ability to keep young people here, I ask the members of the General Assembly to look seriously at the results of this years Economic Survey.

Earlier this year the Chamber unveiled a package of bills, called the Agenda for Jobs. The Agenda is designed to reduce the cost of doing business and strengthen our competitiveness in the Commonwealth. The results of the Economic Survey underscore the critical need to enact job creation measures contained in the Chamber's Agenda for Jobs.

In general, businesses here in Pennsylvania are optimistic about the potential for future growth but retain a heavy dose of skepticism about our current economy. The majority of companies indicated that the economic situation in their community had improved over the past year, and that they expected it will continue to get better over the next 12 months. Additionally, more than half experienced increased sales over the last 12 month and half are expecting sales to improve over the next 12 months.

While the percentage of businesses that did not make investments in Pennsylvania operations in the past 12 months is the highest in five years, 83 percent of respondents indicated that they plan to make either significant or limited investments over the next year.

This is where the optimism ends...

The survey contains several warning signs that Pennsylvania's business climate is still ailing and lagging behind other states.

There was a significant drop in those who perceive Pennsylvania as business friendly, which is the second lowest score in five years.

In fact, only 18.2 percent of respondents perceive Pennsylvania's friendliness toward business as either excellent or good, an almost 10% drop from last year's percentage of 27.7%. 37.6 percent perceive Pennsylvania's friendliness towards business as poor, which is up significantly from 2004 when only 13.7 percent of the respondents indicated was not.

Perhaps one of the most alarming aspects of the survey is that the number of businesses that would consider leaving the state due to the business climate increased to four in ten, virtually tying the highest number in five years. When you compare that to 2001, when only 16 percent said they would consider leaving. Where would they go? To our competitor states in the south. It's obvious Pennsylvania is heading in the wrong direction.

Taxes, the business climate in general and health-care costs top the list on reasons for leaving the state. It's not surprising then that health care costs, and business taxes are the top issues Pennsylvania's job creators want the Chamber to focus on.

So, where do we go from here?

We said it in February and we're saying it again today. Real jobs don't come from government. They come from a free market within an environment of competitive business taxes, limited and efficient regulation, balanced labor laws and freedom from the risk of arbitrary confiscation due to lawsuit abuse. It's time to enact pro-jobs legislation so that next year, the news out of the Economic Survey is nothing but positive.

To review the details of the survey visit: www.pachamber.org

Magic Carpet Ride

So now the big issue in Harrisburg is raising the minimum wage. One has to wonder why it’s so important NOW?? Could it be an attempt to assuage some guilty feelings? Hard to say and who am I to speculate. I’ll let you decide.

What I do know is that raising the minimum wage has been positioned by proponents as the “magic pill” for improving the lives of Pennsylvania’s working families and low-income residents. What they fail to mention is the negative side effect of mandatory wage hikes – that raising the minimum wage hurts the very people it purports to help.

Mandated wages are job killers. Unless business productivity increases sufficiently to generate enough revenue to pay what is essentially a small employer tax, affected businesses will have to spread the same amount of money over fewer workers. The least skilled workers in the labor pool – those that most need to get and keep their feet on the first rung of the job ladder – will be the first to lose their jobs. Because higher mandated wages cause shifts in the profile of those who get hired, as employers favor more highly skilled workers, these low-skilled workers will also be denied opportunities to enter the work force.

Businesses unable to absorb the cost of a mandated wage hike may also be prevented from hiring additional workers, or be forced to decrease the number of hours worked by current employees or reduce health-care benefits (if they are able to offer them to employees in the first place given years of double-digit premium increases.)

Finally, higher minimum wages have a negative ripple effect on other businesses by artificially increasing wages across the board.

Pennsylvania does in fact have an opportunity to help better the lives of working families. Business growth is the real cure. Reducing taxes, providing affordable health care, and improving our legal environment – all ideas being advanced by the PA Chamber’s more than 9,000 members in its Agenda for Jobs – is the source of economic opportunity and advancement. This would do far more good than hiking the minimum wage, which would benefit some to the detriment of those most in need of employment.

If Pennsylvania truly wants to help people, it must reduce the barriers and mandates placed on employers that inhibit job creation. There is no magic pill, no magic carpet ride to creating jobs. It will take some hard work.

Playoff fever

I’m not a big NBA basketball fan.  Unless something amazing is happening (1995-1996 Chicago Bulls season), I find the seasons to be long and boring, and I only become remotely interested in the sport during the playoffs.  In fact, the games themselves aren’t interesting to me until the last minute or two.  The first 46 minutes of play are inconsequential for my interest.  As an “outsider” to the sport, I’ll take my updates from ESPN’s Sportscenter, enjoying the plays that make the highlight reel.

Now, I know true basketball fans are seething at my opinion.  But I can’t help it -- I just don’t enjoy pro-basketball. However, I can understand the frustration purists of the game have with people like me.  They enjoy the sport as I enjoy the sport of football.  Every minute of every game counts (which would be why I’m quick to scream at the referees on my TV after they call an illegal back in the block during the kickoff of a Steelers’ game).

If you didn’t know, the political process is similar. Everything that goes on throughout the year usually leads-up to a particular point in the “season.”  At this time of year, it’s budget season.  To date, most of the work has centered around the positioning of issues for consideration (or lack of consideration) before the summer recess.  To most, it’s boring unless the press picks up on a big issue that may occur during that time.  But for purists, it’s all part of the game.  And few would disagree that the very end of the budget session is an exciting time. 

Also, like sports fans become frustrated with their sports, political junkies can become frustrated with the political system.  For example, sometimes the political wrangling is as frustrating to us as the controversy over steroid use is to baseball fans.  The point is, we all have our beliefs, and even the most avid of supporters can become disenfranchised.

However, what’s great about true “fans” is that no matter how frustrating things can get, once your team starts winning, all seems is forgiven.  As we enter the month of June, here’s hoping that your favorite NBA team (

Miami

or

San Antonio

– yes, that’s my prediction for the finals) wins and that the Chamber sees some wins to create a better jobs climate in

Pennsylvania

…

Lightning in a bottle

It’s hard to capture the passion many business people have about the economic climate in Pennsylvania.  But it’s there.  Boy is it there!

Gene Barr and I just returned from the Speaker’s NorthEast PA Summit on Economic Growth in the Poconos.  The summit was co-sponsored by The Chamber and attendance was around 150 business people.  And I’ve gotta say, the business people in the room were “fit to be tied,” as my mother would say.

Frustration about our UC system, workers’ compensation costs, health care costs and taxes boiled over during open discussion.  It was confirmation that The Chamber’s Agenda for Jobs is right on track.

While there was anger over the lack of movement on pro-job creation issues, it was compounded with frustration over the government’s focus on spending. Once it became apparent that much of the attention this year is on the state’s medical assistance programs, many expressed anger over the lack of focus on getting people off of state programs. 

Simple questions were raised such as why are we paying taxes to cover Viagra and cosmetic surgery?  Why does our system reward many who are taking advantage of the system and punish the working taxpayers, whether individuals or businesses? 

In short, why doesn’t government focus on creating a climate that employs people in good jobs, rather than attending to the crisis du jour which usually costs us more money?

Hey, don’t criticize me!  I’m just relaying the concerns that business people raised.  Although, I find it hard to argue with them.

For advocacy purposes, how do we capture the passion of the business people from all over our state?  Most business organizations struggle with harnessing this energy and directing it toward elected officials.  Unions do it.  Trial lawyers do it.  But business is almost complacent.  And complacency is the true enemy.

When government isn’t hearing a hue and cry from business, it takes us for granted.  And we’re being taken for granted.

At the direction of business, The Chamber has embarked on an aggressive campaign to create a better climate for job creation, but we need the active involvement and passion of business people to accomplish the mission.  We need YOU to be involved in the fight for a better business climate.  We need YOU to take the fight to Harrisburg.  We need to capture the passion that was displayed in the Poconos and the passion I see all around the state when I speak to local chambers.

It’s time to capture the lightning in a bottle.  Without it, we’re without power.