{"id":10952,"date":"2011-08-19T12:53:33","date_gmt":"2011-08-19T16:53:33","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=10952"},"modified":"2011-08-19T12:53:33","modified_gmt":"2011-08-19T16:53:33","slug":"ca-gov-brown-picks-wrong-%e2%80%98jobs-czar%e2%80%99","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/10952\/ca-gov-brown-picks-wrong-%e2%80%98jobs-czar%e2%80%99\/","title":{"rendered":"CA Gov. Brown Picks Wrong \u2018Jobs Czar\u2019"},"content":{"rendered":"

California Democratic Governor Jerry Brown appointed Michael Rossi, former Bank of America executive and GMAC subprime mortgage guru, to be his unpaid \u201cjobs czar.\u201d<\/a> Brown hopes that Rossi will be able to tell Brown how to revive the state\u2019s sagging economy.<\/p>\n

It\u2019s telling that Brown chose a career Big Business executive instead of a successful entrepreneur.\u00a0 The two types of people \u2013 and their skill sets \u2013 couldn\u2019t be more different.<\/p>\n

Rossi\u2019s path to success involved managing large corporate structures that focus heavily on exploiting government-created revenue streams, such as subprime mortgages that but for government-owned Fannie Mae and Freddie Mac\u2019s guarantee would never have been made.\u00a0 It also doesn\u2019t help that today BofA is announcing its second straight year of layoffs<\/a> (3,500 employees this year alone).<\/p>\n

It would be far better for Brown to enlist the help of an entrepreneur with success starting and growing businesses.\u00a0 As the Kauffman Foundation<\/a> showed in a study released last summer, \u201cnew firms add an average of 3 million jobs in their first year, while older companies lose 1 million jobs annually.\u201d<\/p>\n

Here\u2019s the Kauffman Foundation\u2019s explanation:<\/p>\n

Most notably, during recessionary years, job creation at startups remains stable, while net job losses at existing firms are highly sensitive to the business cycle.<\/p>\n

\u201cThese findings imply that America should be thinking differently about the standard employment policy paradigm,\u201d said Robert E. Litan, vice president of Research and Policy at the Kauffman Foundation. \u201cPolicymakers tend to focus on changes in the national or state unemployment rate, or on layoffs by existing companies. But the data from this report suggest that growth would be best boosted by supporting startup firms.\u201d<\/p><\/blockquote>\n

If Governor Brown wants to create jobs he should consult the people creating jobs \u2013 not those managing a declining workforce.<\/p>\n","protected":false},"excerpt":{"rendered":"

California Democratic Governor Jerry Brown appointed Michael Rossi, former Bank of America executive and GMAC subprime mortgage guru, to be his unpaid \u201cjobs czar.\u201d Brown hopes that Rossi will be able to tell Brown how to revive the state\u2019s sagging economy. It\u2019s telling that Brown chose a career Big Business executive instead of a successful […]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2972,299,2585,2971,2035,454,453,2970],"class_list":["post-10952","post","type-post","status-publish","format-standard","hentry","category-posts","tag-big-business","tag-california","tag-economic-growth","tag-entrepreneurship","tag-jerry-brown","tag-job-creation","tag-kauffman-foundation","tag-layoffs"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/10952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=10952"}],"version-history":[{"count":2,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/10952\/revisions"}],"predecessor-version":[{"id":10954,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/10952\/revisions\/10954"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=10952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=10952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=10952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}