Founder's Note: November

Community Comments

Help California Companies Hire Californians

by Warren Smith

A timely discussionon job outsourcing appearing in this issue’s “Out of Their Minds,” (page 17) mirrors debates in many forums across the country. Gov. Schwarzenegger joined the fray by vetoing a bill that would have denied companies state contracts if they exercised their right to outsource any of their work. Way to go, Arnold, and let me add, it’s about time.
    How ironic the California Legislature said no to outsourcing. Our elected leaders have been outsourcing jobs for at least the past decade. By over regulating businesses, lawmakers have been forcing jobs out of our state and out of the country. Now, many of those same Solons are crying foul over the veto.
    Over time, law by law, the Legislature has squandered the competitive advantage California had as a place to do business. Competition drives the market, and for years — blessed with abundant natural resources, great schools and universities and an educated workforce — California was the leader as an innovator and trendsetter. The Golden State was the place companies wanted to be.
    Much of the state’s appeal as a place to do business, however, was dulled by an endless succession of costly laws, regulations and restrictions. In Corporate America and in the media, talk was less about the state’s pleasant weather and more about its unpleasant business climate.
    Prosper Publications learned first hand the economic obstacles to doing business here. As a pro-business magazine focused on regional companies, our policy is to purchase from local vendors whenever possible. However, in shopping for a California printer for our first issue, we received bids that were layered with expenses outside the printers’ control. High wages, healthcare coverage, sky rocketing utility costs and workers’ compensation liability left printers in our region with few weapons in a lowest-bid competition.
    Because of a differential in cost of over 25 percent, we were forced to outsource the magazine’s printing to Kentucky. It won the competitive market battle and got the job. But because Prosper is spending less on printing, a startup publication in California that employs Californians is open for business. The conclusion is obvious: the outsourcing of some jobs can reduce costs, increase earnings and afford the opportunity to hire more California-based workers.
Continued...

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