Work is little understood by government
The Future of Work Commission, appointed by Gov. Gavin Newsom to “help create inclusive, long-term economic growth” in the state, has released a report detailing its ideas for how to achieve those goals. Unfortunately, while the commission rightly identifies many of the problems facing the state, it mostly envisions policy solutions mainly in line with what you’d expect from a commission established by Gov. Newsom.
The commissioners rightly set the scene. California is the fifth-largest economy in the world, and has long been a global leader in business, science and technology.
But, as they note, “too many Californians have not fully participated in or enjoyed the benefits of the state’s broader economic success and the extraordinary wealth generated here, especially workers and workers of color who are disproportionately represented in low-wage industries.”
They’re right about that. They note the challenge of living in poverty in California, the rising cost of living in the state, the high cost of housing and the vast disparities across the state on a number of fronts. They’re right to acknowledge all of that.
But their proposed solutions mostly sound straight out of the playbook of the Service Employees International Union, whose president, Mary Kay Henry, co-chairs the commission.
To achieve the goal of ensuring all California workers by 2030 can get a job, the commission proposes calling on the federal government to enact a nationwide jobs guarantee.
Yes, instead of fostering an environment in which businesses can thrive, investment is attracted to the state and existing businesses not only stay but grow, the commission wants the federal government to pass a law guaranteeing jobs.
The commission repeatedly notes the problem of high housing costs in the state, which contributes significantly to the state’s high level of poverty, but proposes as a solution raising “wages to at least 75% of an indexed, regional living wage measure for 50% of workers in the hospitality, retail, and care sectors.” The commission also calls for a renewed focus on unionizing workers.
Such ideas are what motivated the California Legislature to try and gut the gig economy with Assembly Bill 5. It’s the same thought process that motivates a litany of mandates from Sacramento in the name of helping workers that really only kill jobs and stifle the economic dynamism of the state.
If California actually wants to chart a productive path forward, it needs to be willing to resist the idea that the problems facing the state require more planning, more mandates and more sweeping government intervention.
The Future of Work Commission is right that California is a state with tremendous advantages. But its ideas are precisely what will stifle the state’s long-term prospects, drive out employers and aggravate the problems they want to solve.