Government
Affairs REPORT
Concerns over jobs not served best by protectionist measures
(April 23, 2004) As the end of the 2004 session of the General
Assembly rapidly approaches, lawmakers continue to consider economic
protectionist measures that purport to help save Connecticut jobs
but more likely would put them at risk. Legislatures across the
country have also debated the issue but so far have backed away
from any similar actions.
This week the House referred HB-5660 to the Labor Committee and
the Senate took no action on SB-430 or SB-501. All would impose
stringent restrictions on companies doing business with the state.
HB-5660 denies state economic development assistance to any company
that relocates 100 or more jobs outside the U.S. It also mandates
state service contracts to be performed in this country and requires
certain information to be disclosed to consumers regarding telemarketing
calls. No states have yet approved any such measures.
SB-430 prohibits companies contracting with the state from subcontracting
any work outside the U.S. or transferring any of the contracted
work or service offshore unless the contracted work or service can’t
be done or obtained here. Thus far, no other state has approved
such a measure.
SB-501 also bans any contracted work with the state to be performed
offshore, but also requires companies to provide six-months’
notice to the state of any intent to relocate jobs. Again, no states
have passed any such legislation.
While worries about jobs throughout the country have contributed
to debates in many state houses over economic protectionist proposals,
lawmakers in other states have stepped back from imposing punitive
measures as proposed in the General Assembly.
In fact, while Indiana approved a related measure earlier this
year, legislators there specifically stripped the bill of language
banning overseas contract work.
Most of the country is reclaiming jobs lost during the recent recession,
but job growth continues to lag in Connecticut. The state lost 2,200
jobs in March, according to the Labor Department. That’s why
state legislators should do all they can this year to help make
Connecticut businesses able to succeed in the global marketplace.
Protectionist bills may only invite retaliation and make companies
look less favorably on our state as a place to do business, ultimately
harming those people they attempt to help.
Recently in Greenwich, William “Curt” Hunter, dean
of UConn’s business school, said that over the past 10 years,
the net job loss in the United States because of open markets has
been about 12 million. But in that same time period, 17 million
jobs were created. “So we have created more than we [lost],”
said Hunter.
Lawmakers should work to reduce the already high cost of doing
business here, and enable Connecticut companies to grow stronger.
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