The Next L.A. / Reinventing Our Future : THE ECONOMY : IDEA FILE: Make L.A. more business-friendly.
How It Works
Make permanent the recent one-stop shopping efforts to slash red tape for earthquake rebuilding. Also, the state’s push to streamline permitting procedures for business are pushed harder at the local level. Bureaucracies would be made “business friendly” through meetings that sensitize government employees to the cost pressures and regulatory burden on local manufacturers.
Benefits
Business leaders say companies have been fleeing Los Angeles because of excessive regulations and bureaucratic red tape. Manufacturing has been especially damaged and high-wage industrial jobs traditionally have given unskilled workers an entry point into the economy and chances for upward mobility. Manufacturing strengthens the local economy by stimulating service firms such as finance, insurance and transportation.
Short-Term or Long-Term Impact?
Doesn’t do much in the short term but can yield results later.
Supporters
Such a strategy is critical to restore the state “business climate,” which has led to companies fleeing to more attractive locales, supporters say. They note that state officials last year approved a set of business incentives, which may already be improving the climate.
Opponents
Such local policies are not sufficient to erase the worst minuses for Los Angeles, such as crime and high costs, critics say. Any backsliding on enforcement of environmental regulations creates new problems, they argue. Laissez-faire advocates oppose any such programs that get in the way of the open market.
The Costs
In theory, saving time and bureaucracy could eventually save money; enhancing the business climate might result in lower business taxes, which would drain public revenues. But more economic growth would help offset this.
REALITY CHECK
In the realm of possibility. But coordinating local and regional bureaucracies, much less getting them behind a bona fide campaign, won’t be easy, especially if the economy picks up a bit.
