Liberal PPIC Bolsters Dem Claims

Steven Greenhut: The Public Policy Institute of California, the liberal think tank that insists that it is nonbiased, continues to insist that higher taxes and stiffer regulations do not cause businesses to leave California. Its newly revised study attempts to discredit Republican claims about the economy, something celebrated by this prominent Democratic-leaning Web site. This is from Dan Walters’ column today:

“Last week, the Public Policy Institute of California weighed in with a new version of a study concluding that only a tiny percentage of California’s job losses – never more than 2.3 percent in any one year – results from employers moving elsewhere. That, in turn, sparked a retort from business relocation adviser Joseph Vranich on an Internet political site. He says the PPIC study is erroneous because it discounts complete shutdowns of California job sites and decisions by companies, even those headquartered in California, to invest elsewhere, citing multiple examples.”

Of course, few companies actually pull up roots, but many expand elsewhere or don’t expand at all. Other businesses never locate in California. Most sane businesses would never even consider creating jobs — especially manufacturing jobs — in California. The liberal position suggests that individuals are not motivated by incentives and disincentives, that businesses will just take anything that comes their way. That’s the attitude among the state’s Democratic legislators, who figure that they can do whatever they please to the business community. Most people know better, regardless of such studies.
SEPT. 26

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