Thursday, September 07, 2006

What Foot Are You Dancing On, Arnold?

Schwarzenegger has done it again: Completely confused us about his platform. Even France is perking up its ears. (See an article in the French blog lesechos.fr.)

The Global Warming Solutions Act has been passed, and Arnold is taking the credit just before elections. Don't get me wrong: I like clean air as much as the next fellow. But I'd rather let private companies do the investing, not California taxpayers, who will be footing part of this bill if the legislators and special interest groups have their way and a tax is passed on gasoline.

But state involvement in a particular industry has its silver lining for those who know where to look.

Silver Lining
[Thanks to my.fit.edu/~dabrown/pictures for the image.]

Companies like Draper Fisher Jurvetson, and Kleiner Perkins Caufield & Byers, are cashing in. In Draper's case, they are the recipients of funds from a settlement in the bankruptcy case of Pacific Gas and Electric. They will meet the funds with their own venture capital, and they've set out to push Green in California.

On the other side, you have objectors. According to a Reuters article at Yahoo Finance, other manufacturers are hesitant. Jack Stewart, president of the California Manufacturers & Technology Association, is paraphrased:

"In essence, Stewart said, manufacturers who are considering expanding in or moving to California will put their moves on hold for five years, because the final specifics of the regulations are not expected until 2011."

Thomas Duesterberg, president and CEO of the Manufacturers Alliance/MAPI, says:

" 'In a globally competitive environment, manufacturers won't be able to sit around and work on marginal costs,' Duesterberg said. 'They are going to have to think seriously about whether or not to stay in California.' "

I guess Arnold's platform is: "I wanna get elected. The rest can wait." Meantime, the jackals dispute the spoils or hunk away mad.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home