Kitsap Peninsula Business Journal
1-7-2003
Locke’s budget cod liver oil
for state’s ailing economy
By Don C. Brunell, President
Association of Washington Business

Anyone who’s ever taken cod liver oil wonders if the cure isn’t worse than the disease. In fact, I can remember my grandmother telling me to hold my nose, swallow hard, and I’d get better. It worked.

I was reminded of that advice when Governor Locke announced his 2003-05 budget. The proposal triggered an avalanche of criticism and protests that will only intensify as the legislative session progresses. But like it or not, the Governor’s spending plan is the “cod liver oil” our state needs to produce jobs and prosperity in the future.

No governor wants to be the one to hand out bitter medicine. Force-feeding cod liver oil is neither easy nor popular, but when the state economy is in critical condition, a dose of strong medicine is needed.

Just look at what’s happening at Boeing. Despite the softening economy in 2001, Boeing had planned to build 600 airplanes this year. But after the 9-11 attack, people stopped flying airlines, delayed or canceled their orders, and Boeing’s production was cut in half. The company must also cut the cost of its planes to compete with Airbus, the European government-subsidized airplane manufacturer.

As a result, Boeing has restructured and laid off more than 35,000 workers — most of whom will not return when the economy improves. Boeing either produces planes more efficiently at a lower cost or Airbus corners the commercial aviation market. It is that simple.

The reality is that thousands of workers who used to have good family-wage jobs are now unemployed. We can’t seem to shake this prolonged recession and the bad news is many products cost too much to produce in Washington.

Employers — the job providers — must lower costs or close their doors.

That’s the situation the Governor and lawmakers face as they head to Olympia after the holidays. Imposing new taxes to balance the budget is not a way to stimulate job growth or economic recovery. And, if lawmakers allow a 29 percent average increase in workers’ compensation and an average 15 percent hike in unemployment taxes, the costs of doing business in our state will soar, our economy will falter, and we won’t have the jobs people need.

The Governor has given the legislature a framework for recovery, but unless lawmakers are willing to “take their medicine,” forego tax increases, and streamline government, our state will miss a golden opportunity to restructure itself to grow, prosper, and provide new jobs.

We need to hold our nose and swallow the cod liver oil now, before it’s too late.

(Editor’s Note: Don Brunell is president of the Association of Washington Business (AWB) AWB’s 3,700 members range from the state’s largest employers to the smallest, and employ over 600,000 workers in our state. Visit AWB on the Web at www.awb.org.).