Governor Jerry Brown swept into Los Angeles last Friday, picking up the preordained endorsement from the Los Angeles Area  Chamber of Commerce for his $50 billion tax increase election. Preordained because the Los Angeles Area Chamber long ago lost its soul. It is no longer a dependable ally for the small or larger business communities. 

The Los Angeles Area Chamber was taken over by non-profits and lawyers. The landmark election of George Kieffer of Manatt Phelps (pictured right) in 2003 began a new assault against entrepreneurs. Since then the LA Chamber has supported virtually every tax increase from the city, county and state level. The Chamber supported the ill fated tax Prop 1A in 2009, which was rejected by angry California taxpayers by a margin of two to one. 

George Kieffer is a gentleman and a Partner for majordomo Democrat law firm Manatt, Phelps. Well known as a Democrat funder and activist, he happens to chair the Government and Regulatory Policy Division for his firm. If your business has problems with government, who better than a close friend to the Democrats who control California government and regulations?

A closer look at the Chamber helps explain it’s anti business posture. Some 147 individuals make up the Chamber’s Board of Directors. 46 are either lawyers or work for non-profits. You know civilization is threatened when non-profits influence a Chamber of Commerce. The fact that Los Angeles is turning into a Third World environment is undeniable. Few major businesses headquarter in Los Angeles anymore. Small and middle businesses flee Los Angeles every week. In fact, the only major business listed on the LA Chamber’s BOD is the Disney Company. And Walt Disney was no Democrat. 

At one time the LA area Chamber had real influence with a pro market agenda. Economist Leonard Reed (pictured, left) was it’s executive director in the 1930’s. Later he founded the Foundation for Economic Education a precursor for the modern conservative movement. Leonard Reed challenged Upton Sinclair (another nice gentleman) — EPIC campaign for governor in 1934. Sinclair promised to seize  major businesses to provide wealth redistribution.  Reed and Louis Mayer of MGM studios fame (pictured, right) realized Sinclair had to be stopped. Since that victory California  and Los Angeles were  the engines of growth, good jobs and creativity for 50 years.

The Chamber starting losing influence  with increasing taxes and regulations forcing major businesses out of Los Angeles. Gone are Union Oil, Getty Oil, Arco, Security Pacific National Bank, Dart & Kraft Industries, Litton Industries and many more. 

As the wealthy hover in west Los Angeles and the Chamber promotes endless higher taxes the odds for a LA recovery is minimal. 

The Times reported that current LA Chamber chairman Joseph Czyzyk admitted the 50 billion tax extension would have a “short term impact on our economy”  but he would like to see “changes” in the public pension system. Czyzyk also suggested to Brown that the taxes ought be extended "for just three years.”

“I prefer five years myself,” Brown replied, appearing to dismiss the suggestion.

This entry was posted on Tuesday, March 1st, 2011 at 12:00 am and is filed under Blog Posts.