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An Independent Voice



An Independent Voice

The Economy and Jobs

My academic education and experience as a builder do not qualify me to be an expert on California's economy and job creation, but I do understand the basic foundation on which economies grow and maintain balance.

Jobs are created by private businesses and corporations, (private sector) or government (public sector). The private sector job creation is driven by revenue produced by sales, service, etc. (and hopefully profits). The public sector relies solely on tax and fee revenue. The more private revenue generated, the more taxes and fees paid. Simply put, businesses make money and government spends it. It is essential that job creation be first accomplished in the private sector. It is incumbent on our local and state governments to provide an environment that encourages this.

Think of the public sector as overhead of the private sector. The greater the overhead, the less profit for individuals and companies. Overhead in any company is essential for the proper operation and organization. However, when it becomes too large, it affects efficiency and profitability. If the California legislature was very serious about business development, hence job creation, they would eliminate the red tape and the bureaucracy that is so detrimental to its success.

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