Businesses need stability to grow
If business has an enemy, it is the instability and uncertainty in markets, in supply chains, and now let’s add in the recall election. The state of California, the fifth-largest economy in the world, is distracted with a gubernatorial recall.
The Los Angeles Area Chamber of Commerce opposes the recall election. We understand that in today’s complex times, business must be able to rely on consistency in political leadership, just as we seek stability in the markets and systems which keep our economy moving. Recalling the governor would only lead to a tumultuous and unnecessary interregnum where political wrangling and uncertainty will detract from the state’s economic and health relief efforts, and we will not support it.
While disruption in business can lead to innovation and major advances, the governmental disruption caused by recalling Gov. Gavin Newsom will hinder the progress being made to ensure our communities stay safe and recover from the pandemic. Stability in government is good for the economy and should only be interrupted under extreme circumstances. This recall comes nowhere close to meeting that standard.
Recalls were devised to be used with evidence of malfeasance and risk to the public. This point is particularly important given that Californians
currently face a wide range of threats to post-pandemic economic recovery, including the expanding resurgence of coronavirus variants, struggles with the state’s power grid, devastating wildfires, and a historic drought. Even with differences in policy, it is irresponsible to distract our elected officials from these critical issues facing everyday Californians. It’s just not good governance.
Proponents of the recall claim frustrations over shutdowns, business restrictions and a worsening housing and homelessness crisis are what justify the interruption. It is impossible to deny these are issues that require solutions, but without evidence of malfeasance or risk to the public, exercising our voice in deciding who is governor should occur during regularly scheduled elections, the next of which is happening in 2022 regardless of the recall outcome. It’s painful to see the expensive campaigning on every side of this election — a waste of money, time and effort that should instead be spent on fighting the pandemic.
As the governor campaigns to fight off the recall attempt, he hopes his relief plans can ease the pain for business owners who are struggling to stay on their feet after a year of closures and restrictions. While the pandemic restrictions have been credited with minimizing COVID-19 mortality rates, many small businesses were still left on shaky footing. The governor responded by allocating crucial relief to small businesses in the form of billions in grants and tax credits that kept many afloat who otherwise may have had to shut their doors.
We know there is more that can be done to keep California globally competitive and a leader in the nation, but this recall election is clearly not the answer. We invite the governor to engage with business leaders who are innovating and creating the jobs for a new economy. He can boast 4.1 million small businesses across California, all of whom represent the vast majority of the state’s business community, employ nearly half of its total workforce, and create twothirds of all new jobs, making them the critical drivers of economic growth and mobility throughout California.
There is no doubt these have been challenging times for businesses, communities, and government alike. Yet, none of these challenges rise to the level of creating more unpredictability by changing gubernatorial leadership in a recall election. The people of California will have the opportunity to choose whether or not Newsom deserves a second term in less than a year. In the meantime, let’s focus on the work at hand to ensure our businesses, employees, and communities can thrive and prosper in California.