Further discussion: Is government capable of encouraging economic growth and jobs?

The Santa Cruz Business Council opened a dialogue last week about the local business climate, about opportunities and challenges and about whether Santa Cruz leaders encourage economic development.

The discussion is of critical importance during a time of high unemployment. The question is: can and will government leaders provide stimulus to a healthy economy.

Local businessman Eric Mendelson has doubts: 

"The glass half empty perspective:  None of our elected officials attended (the Business Council discussion).  This speaks volumes about the continued difficulties businesses face in Santa Cruz County.  The regulatory environment continues to be challenging and the cost of doing business here continues to be excessively high.  The price to purchase or lease commercial real estate is still too high and businesses are opting to locate in Silicon Valley where the price of real estate is much more affordable and the population of talent is higher.  Our local university still does not understand how to foster the nascent entrepreneurs on campus and as a result, those that have serious chances of success move over the hill as soon as they can.  The city and county cannot rely on home based technology companies (i.e. iphone app developers) to rescue the economy.  Real brick and mortar commerce is needed and our governments continue to be ambivalent (at best) about attracting the necessary industrial concerns to reverse our economic downturn.

Another commenter wonders whether local government actually can do anything. He suggested this link to NPR's "This American Life" and a fascinating look at whether government is even capable of adding jobs. 

The highlight: "Act Three -- Job Fairies" in which economic development officers from governments across the United States attend a meeting the International Economic Developers Council in San Diego. Correspondent Adam Davidson compares the convention to an meeting of pickpockets as they attempt to "steal" businesses from other areas. The biggest target: California, with its reputation for over-regulation, high taxes and other business-unfriendly policies.

If you don't have time for the entire show, make sure to listen to "Job Fairies."