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Regaining California's Leadership Role as America's Opportunity Capital

Posted: 08/22/11 05:18 PM ET

Senator John F. Kennedy used to roast the Eisenhower Administration's overly-rosy economic forecasts by comparing them to "a policeman bending over a body in the alley and saying cheerfully, 'Two wounds are fatal. The other one is not so bad'."

As a small business owner and Lieutenant Governor, I'm reminded of those words every time I'm asked to make the case for investing, expanding or otherwise creating jobs in California. And, I know from personal experience that there is no better place to live, work or invest than California.

We have the highest educated and most productive workforce in the country. We are home to the most diverse regions, communities and Tribal nations. Hollywood entertains the world. Silicon Valley keeps the world connected. San Francisco and San Diego drive the global biotech industry. Our Central Valley produces the most abundant agricultural output in America. California is truly a global epicenter of innovation.

California owes its leadership on innovation to our small businesses and start-ups. Comprising 96 percent of our exporting firms, our state's small businesses drive progress in every conceivable field, and are responsible for creating two out of every three new jobs.

We also lead on industrial production. Representing nearly one in ten working Californians and 87 percent of our exports, our manufacturing base is one of the most sophisticated and diverse in the world.

These realities give us reason to hope, but they gloss over the deep, fundamental cracks in our economic infrastructure.

A troubling perception has taken hold across the financial landscape that California's economy is now stuck in a state of permanent stasis, that we've somehow lost our mojo, and that recessionary pressures have been exacerbated by partisan paralysis in Sacramento. That perception is because California's in crisis. We have the second highest unemployment rate in the nation. Out of 58 counties, 52 are suffering from double-digit unemployment -- 21 of which exceed 15 percent and Imperial County, with an astonishing unemployment rate of over 30 percent.

That's why I've spent my first year as Lieutenant Governor traveling across the state and the country to find out what's working and seeking best practices.

With the support of leading business and labor organizations and national think tanks, we developed and distributed an "Economic Growth and Competitiveness Agenda for California." This agenda is designed to start a new dialogue about specific and achievable action steps -- that are low-cost, high-impact -- that will set the course to success, working towards more challenging issues by building trust and a sense of common purpose and vision. Working together, we will regain California's leadership role as America's opportunity capital.

In light of the fact that the agenda is broad in scope and forward-looking, it's fair to ask, Where do we go from here? What can be done at this critical moment?

The Governor has already taken the first step by adopting the agenda's top recommendation and appointing a new job czar for California.

We must organize around a new competitiveness and economic development team for California. Within weeks, with the extraordinary leadership of Assembly Speaker John Pérez, a bill will arrive on Governor Jerry Brown's desk that establishes a new economic development agency for the state.

This is not about creating more government bureaucracy; it's about consolidating and streamlining our efforts, providing a one-stop entry point for business assistance, while supporting regional economic strategies.

At the same time, we will establish working groups that include a broad coalition of individuals, to build consensus and make recommendations for action around key issues including data, regulatory smoothing, regional alignment, trade, manufacturing, and workforce development.

Additionally, California must immediately begin promoting both trade and its international presence as an economic priority. The agenda calls for the development of comprehensive export strategies for each of our state's regions, which will in turn benefit our entire state. California must re-launch its brand internationally. That is why this Fall, through private-public partnerships, we will reestablish an official state presence in international markets, beginning with China.

And finally, it's no secret that California is home to the top innovation centers in the nation -- San Francisco, San Jose, and San Diego regions are the state's top generators of patent applications (per 1,000 employees) and high-tech employment. Federal laboratories like Lawrence Livermore and Sandia/California represent enormous intellectual assets, as does the University of California system, which holds one of the largest patent portfolios in the world. Therefore, it's essential that the Federal government locate one of the three new U.S. Patent and Trade satellite offices in California. In the coming months, I will work with our legislative leadership and Congressional Delegation to make this a reality.

Too much is at stake in California. Something has to change dramatically. I look forward to convening our first annual Economic Growth and Competitiveness Summit within 180 days as we work together to shift the dialogue and get California moving again.

 

Follow Gavin Newsom on Twitter: www.twitter.com/GavinNewsom

Senator John F. Kennedy used to roast the Eisenhower Administration's overly-rosy economic forecasts by comparing them to "a policeman bending over a body in the alley and saying cheerfully, 'Two woun...
Senator John F. Kennedy used to roast the Eisenhower Administration's overly-rosy economic forecasts by comparing them to "a policeman bending over a body in the alley and saying cheerfully, 'Two woun...
 
 
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02:20 AM on 08/31/2011
http://ltg.ca.gov/s_aneconomicandcompetitivnessagenda.php

Server Error
404 - File or directory not found.
The resource you are looking for might have been removed, had its name changed, or is temporarily unavailable.
This is what I get when I click on the link to read more on the Lt. Gov page....Nice
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gypsy508
09:01 AM on 08/24/2011
Newsom has come a long way from being a special needs student. Wonder who writes this stuff for him?
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LLeGrande
An Increasingly Disgusted Liberal Democrat.
07:21 PM on 08/23/2011
It's time for Mr. Newsom to announce that he will challenge Senator Feinstein for her Senate seat in the 2012 election. New blood is required. It's time for Ms. Feinstein to retire.

I have announced to Ms. Feinstein that I no longer support her in the Senate. She has a miserable record regarding the 'Surveillance State' which we now have since President Cheney declared war on everything except war profits and deficits (deficits don't matter, he said on multiple occasions).

Ms. Feinstein's time has come and gone.

Mr. Newsom is the up-and-coming new-blood required in the Senate.

I hope he will challenge Ms. Feinstein.
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gypsy508
08:58 AM on 08/24/2011
Newsom is a sad replacement. He pretty much comes from the Feinstein camp to begin with.
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01:25 PM on 08/27/2011
Exactly.
01:01 PM on 08/23/2011
Great article confirming Mr. Newsom has hopes of following Mr. Brown as governor. However he fails to recognize that the ever increasing costs of state government is one of the major reasons why this state's business climate is so bad. Instead we get more platitudes and working groups along with calls for even higher taxes to feed the bureaucracy.
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rda1911a1
God Bless John Browning
11:29 AM on 08/23/2011
California is never going to make it when they encourage uneducated illegals to flock there then tax and regulate the producers to pay for these leeches. I think we should wall off California and return it to Mexico. Course mexico would not want all the welfare leeches as part of it's nation. Those who can produce wealth will continue to flee as long as this socialist utopia mentality rules in the California state house and public unions. Good luck California please turn the lights off when you close.
Cacey
Ignore rudeness, honor discussion
07:03 AM on 08/24/2011
Your "walling off" California and perhaps Oregon and Washington as well would hardly bode well for your 47 state nation for a number of reasons. First, you would have to do without the money we pay to DC and don't get back thanks to revenue sharing. In short, your Red States might have to pay their own way. Second, think of all the up charges we could do for our goods, services and agricultural products that you have to buy from us for your survival. Third, given the strength of our ports, adding export fees for goods transported through our new country would add billions to our revenues. And finally, like many nations, we could then add visitors taxes to the cost of your vacations. Good luck. You still have us and thank your god for it.
09:58 AM on 08/23/2011
Those days of people wanting to move to California are over.
09:55 AM on 08/23/2011
The negative perception of California, and in particular, San Francisco, is well earned by the loonies running those governments.
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hg wells
08:20 AM on 08/23/2011
All I know is LA is the most littered city I have ever seen...and I am talking Santa Monica.
dhodge
Atheist Libertarian, No god, No gov't.
08:19 AM on 08/23/2011
I can't tell you how many CA families are literally falling over themselves selling their 2500 ft^2 house in CA to move to SW Mo and buy a 6,000 ft^2 house for the same price... You bet CA; really the cream of the crop... Any of you with any initiative and will power are moving OUT of CA; and only the freeloaders are staying; that's why the rest of the country is about to have to bail you out.
Cacey
Ignore rudeness, honor discussion
09:07 AM on 08/23/2011
First, unless you are Mitt Romney, who needs a 6000 sq. ft. house? And in Branson, a place (one can hardly call it a city) devoid of physical beauty or intelectual stimulation of all places. And in terms of entertainment, there's more free street entertainment to be had simply walking the length of San Francisco's Embarcadero than Branson has in a year.
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Alex Luck
proud godless commie
09:26 AM on 08/23/2011
I was unfortunate to attend a reunion of an old Army unit in Branson. The place should be called "The Land of the Living Dead".
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rda1911a1
God Bless John Browning
11:36 AM on 08/23/2011
Yeah they are moving here like crazy too. funny they bring their failed ideas with them also and wonder why the government or school does not have this left wing program or that. i hear well in california they take care of that at school or their is a program to pay for that. Please leave your failed socialist ideas at the state line huh?
dhodge
Atheist Libertarian, No god, No gov't.
12:05 PM on 08/23/2011
Awesome!
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AZreb
equal-opportunity Independent heathen
08:08 AM on 08/23/2011
My oldest son and his family can't wait to get OUT of CA - and he and his wife are professionals and have good-paying jobs with great benefits, lots of extra goodies. He is no spring chicken - in his early 50s. Don't know what has brought this on, but I do know that CA has changed drastically since I lived there for 47 years.

Haven't been back to CA in over 16 years and have no desire to visit, even though three of my children and their families live there. That last visit did it for me -
08:00 AM on 08/23/2011
And with all of that they haven't figured out how to live within their means.
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realitytrumpsbull
two 'alves of coconut!
07:08 AM on 08/23/2011
Well, maybe because California's got so many people with degrees, the first thing that the lieutenant governor can do, is establish a small(?) team of professional accountants and auditors that can go through California's books like they were looking to find frauds, embezzlers, and other nefarious persons with sticky fingers and high ambitions. Find out WHY it is, that CA's notoriously, chronically in debt. There's some kind of problem, there, when the annual overrun is in the tens of billions of dollars. In a sense, everyone employed at the UC system is a state employee, roughly, so tell the students to take a term off, and draft the instructors, administrators, everybody, into the effort of reconciling the state books to a satisfactory standard. When they're done there, maybe they can 'rent out' such services to other states that find themselves in arrears in the attempt to help them resolve the situation. A state-by-state approach might even provide unexpected support at the federal level, where the daily damage accrues at the rate of 4 billion bucks. This is the 21st century, we keep hearing how good the digital recordkeeping is, right, so...maybe if CA can clean their own house, and help others do likewise, we won't have to read about Congress having to pass another spending bill to prop up states that are chronically in hock, such as CA, NY, IL, and others.  Sure, it's a big job, but with 38 million citizens, I'm sure that California can drum up some quality talent to meet the need in short order.
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twystd69
05:46 AM on 08/23/2011
California is like a millionaire who has lost all his liquid assets but still has his credit cards. Racking up major debt trying to still live the life of luxury, but the whole time putting off the inevitable. Making minimum payments just to keep the cards, borrowing money from his almost broke family trying to stay afloat. And his children living in denial.
12:40 PM on 08/23/2011
Nicely stated!
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Malcolm Hensley
Last of the Reagan Republicans
03:56 AM on 08/23/2011
Gavin Newsom - you want to help this state? Get rid of term limits.

Democrats like to blame the Republican minority for making this state ungovernable! The law has only been around since the 30's!

Many Democrats believe the problem is Prop 13. We have had Prop 13 since the 70's and still had the 5th largest economy in the world!

No the last major change we made was term limits! Like Prohibition it is time to end this experiment.

It is time to take our state government back from the lobbyist and give it back to our crook-it politicians again - as much as it pains me to admit it!
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Bibulus
On my way back from Hawaii with the long-form bio
02:57 AM on 08/23/2011
A troubling perception has taken hold across the political landscape that California's Lt. Governor is a grandstanding demagogue who's either eviscerating San Francisco's economy, racking up complaints by the Ethics Committee and Sunshine Task Force or banging his employee who also happens to be his best friend's wife.

Don't strain yourself setting up those "committees" there big fella.