Regan

Because I love just from a new balanced world headquarters are very fair and storm. Welcome back Steve good morning good morning well yeah the season's first -- that. Try to something like that yeah we have our global warming reporter right here in the studio after having been out on the field at TP CBM global warming on your way -- here. I saw no global warming and global cooling but global global and cancel all its often thought until further notice. I guess the the studios John Reid he is.

The vice presidents for a regulatory and some benefit as an associated industries of Massachusetts how many members are you -- the president. Not I'm not as close as -- and we only of the vice president that's all we can -- while Joey and his dog -- broke -- now that I have -- and that's right and -- warming -- would probably -- look good way to get in touch with the -- how many members associated we have about 6000 members -- employers from all across the state in virtually every industry -- small large scale manufacturing wholesale engineering -- about the -- we don't know and -- to -- to -- how many companies -- remember your association. But -- little over 6000. Six thousands company as hard as Democrats have been working to get business out of the states. There're still 6000 here but according to. The division of unemployment assistance or about a 180000. Firms in the company so we've got some room to grow in the country -- in the state.

Instead 380000. Firms are correct yeah but there I mean that's a that's a pretty good cross section in geographic -- cross section that is so exactly we have trademark name companies like oh new balance brochure and -- companies that you probably never heard of -- So in the headline today ninth put -- excuse me nine point 3% unemployment highest rate Massachusetts in many many -- Devastating tepid news for anybody who's concerned about them grow -- through their -- welfare and so on and so forth. And a government talking about continued budget cuts. And you folks timing is everything John Reagan Imus congratulating you folks have recently within the past when Ferraro has published a competitive index. IE how does Massachusetts stack up against the 49. Peers for at least here in the United States America we were -- forget. You know Singapore I suppose or other places. Tell us the good the bad in the I'd like.

Well what we're attempting to do is live up to our mission which is to talk consistently -- Massachusetts business climate and we we stand. From a competitiveness standpoint and but the index is attempting to show is that while we have some strengths and everybody is aware of our strengths we have. A well educated workforce we have five cultural amenities we have. Arguably the world's greatest healthcare. By the all we have all those advantages we also have some very severe cost disadvantages. And those cost disadvantages. Make it difficult for Massachusetts companies to succeed. In to grow here in mass. -- is is zero lump -- number on in all of those cost differences how much more expensive is it to open a business here as opposed to southern New Hampshire or elsewhere. -- that there are various. Measures and I think what we tend to do was look at specific silos of cost so for example. You know whether it's. The highest in the nation costs for health care that's Massachusetts. Almost the highest in the nation costs for unemployment insurance and noble or possibly get to the top of the pile next year given the increases and -- unemployment insurance that are coming. Almost the highest cost electricity energy there's ownership death. And so all of those things taken together make. Our cost structure here in Massachusetts just advantageous for our -- put in unison -- is a 5% more expensive here -- or 20% because someone argued that. That the benefits in terms of workforce the guess here education level proximity to schools -- work with in terms of training and such. Would more than be justified by the but a small extra you have to pay to be here I don't have an all in number there are reports that have looked at. Competitiveness by industry and how well Massachusetts companies do in terms of profitability here versus all the locations. And in response to the well educated workforce and and how much cost differential Massachusetts businesses can bear as a result of that. I think. High wages that we we pay here in Massachusetts. -- are offset by the high productivity that I workers have and so that. Those two things let's say canceling their Allentown now that's our -- to an extent. And then some always other costs are on top of -- ice that departs that's a --

Okay the utility stuff let's try to structure to and from all and I know it's laughable that Todd -- is sitting in the legislature he's a speaker of the house some a member and I wanna pay attention as well. And you commend apple. -- just is stiff if I'm a member legislature I'm looking at the report in the go ahead in the paper. Nine point 3% unemployment I'm not oblivious to I'd like to think they're all oblivious I know what's going on in my community and I know people frightened. We in the legislature -- and -- we wanna do something about this who would you ask speaker Feinberg -- senate president trying to convert to go.

Well I think that the challenge here is that we have what I like to call Massachusetts only costs of doing business owners -- okay this event I wanna get to -- a different deal that would -- would be the only ones the only one outstanding -- costs that -- competitor states don't have to deal with us I think the first thing we have to do. Under the heading of first do no harm. Please don't add any new Massachusetts only cost of doing business things like paid family leave. Mandated paid sick time. These are proposals that have been kicking around Beacon Hill for a long time. You know in this type of a legislative -- climate or environment. Where budgetary constraints mean that you can't do things. In the budget document. Might tempt people to do things of which would be labeled no cost we would suggest they're significant costs associated with some of these things. And put our Massachusetts business at a disadvantage so. Don't add any new ones is the first for -- pure the second request would be. Take a look at all those areas where we stick out like a sore thumb and do something to push us back. Into the pile shall -- not the first in the nation in terms of cost. Again electricity. Tax policy health care wherever we're at the top of the pile that's the task not to be to move us back into the pack. What can -- remembered do. To push back utility costs we we plug into the electricity we get a bill from my guess it's and Styron National Grid or whatever they these days. Who what what what we'll put those up powerful -- do about that well and in electricity that there are two sides that equation one has the power that's generated and how much that costs and on this the does transmission and distribution -- so. To be a bit I think here in Massachusetts we tend to have the Senate to the we have high cost of electricity and there's nothing that we can do about it a lot of the high costs that we have electricity. Have been driven by decisions that we made over the last one -- 25 years about what types and kinds of power can be built. Here in Massachusetts and more broadly in New England. We've we've gone away from anything but natural gas. 44 base load power production truck it's the most expensive fuel source the rose Missouri and it it well. It is our candidate installer and now that there's so much discovery are on a new supplies that could change that could change I think the question would be how quickly does that new supply come to market -- and one of the other demands for gas because other jurisdictions now pursuing gas because it is a cleaner fuel source. But we need to we need to rebalance how the powers for a while we need to look while we make -- perhaps we're -- Pritchard pursuing environmental goals and environmental outcomes. We might have been oblivious to the cost side of that. With three got to your members and and in the end everybody's listening. Either it runs a company Paul works for a company tries double -- to have you off. Organization associated industry of sorts I think in and I think you've said that exactly right that the pursuit of the environmental goal has trumped all other goals. And not -- standing rhetoric around cost. That's been a secondary and tip or two share -- concern I think we need to move that up look up the latter event. Okay what else besides him any anything else he can no look at and say obvious big cost. That is uniquely large to Massachusetts I would say tax policy remains a challenge for Massachusetts. Such polite language I Heidi I knew I -- not as images and remains a challenge that's a that's a euphemism -- tax policy is take some artists -- is a disaster if Todd would rise a little bit more -- idea is that so so we talked a lot about the value of stability in the tax code we've had four major changes to the corporate tax -- the last six cents. So if you -- investment ten years ago here in Massachusetts the tax code under which you made that investment has changed four times. And in dramatic ways and this most recent change which. You know cynics and frauds have labeled a loophole closing down is a complete. Overhaul. Of the corporate tax code here in Massachusetts a complete change to how we Torres in my hand the other CEO from the CF OR from the yard general corporate counsel. I investigate this issue are considering an expansion. A relocation and start a new enterprise. And I'll say they keep changing the rules of the game -- their boss. You don't wanna go they I mean in my eight overstated the case when I -- about what a good CF for a good lawyer would say absolutely not an -- That the challenge that I think -- but how the challenge has gotten more extreme. In the last fifteen years or twenty years. Is the number of companies that are. -- located in Massachusetts so -- headquarters and most of the board members and all the employees and everything is here in Massachusetts. On those companies are becoming more more rare. What's more common is you've got companies that have low cut locations all over the globe all over the United States so that's CFO. On that CEO who's considering an investment decision is not looking at theoretical numbers about what is it like to operate in Nassau -- line it was actually authority turn them on us now he's got the bottom line in front of him and and our current and and as they're trying to figure Roush. -- where we gonna make the net next investment and you're looking at costs so radically out of line here in Massachusetts we -- not winning those competitions for the capital investment.

But if you're Democrat doesn't this work perfectly for your business model. You get the producers out of the states so you have more people moving here are dependent on the state I mean got a problem in terms a convincing them to wanna keep business here --

This see this this -- not specifically about Todd but about the Democrats and I continue to get yelled at because I'm still Plaistow belong to the -- and say so without any equivocation. I've never been able to understand generate and why any Democrat is not business sensitive first and foremost. If I have businesses in this state making investment growing jobs of prospering. I have tax revenue coming in the door off so -- can then do the program that I want for the homeless kid. The bust that up family that addict or whatever the hell it is I can't do any of that stuff. I less subject your members prosperous first and foremost what am I freaked in this same.

So does the revenue side which you've already identified there's another side to this which is that you know those opportunities for employment. You know when you talk about. Areas of the state outsiders say the 128 or maybe even more broadly outside the -- 95 area. We manufacturing still continues to be an important part of the State's economy. That's where you'll blue collar I didn't have the chance to go to college type folks. Have the opportunity to have a good salary with with benefits and a career path and perhaps the opportunities at. You know start and finish an enemy enemy a -- and and a glass quality of life and that and that's disappearing those opportunities are becoming more and more difficult to obtain. And we put all our eggs into a couple of baskets we put them into the the Biotech and life science area which you know given our strengths and not -- that doesn't make sense but it needs to be balanced with with. Some other things some other stuff and and that's with a challenged. Crystal and China are like nine other states at least or maybe -- SO overstate it but a bunch states that -- looking aggressively packet and opportunities. To go and get those business -- say we come here constantly challenging our our home --

John Henry and his executive vice president of government affairs at associated industries of Massachusetts which is an association of employers and manufacturers mostly or is does it run the gamut I runs the -- we still have a vote 30% of the membership in manufacturing but we also have retail service. This financial firms. Educational institutions we've we've got a little of every so government affairs that means you're talking to the legislatures and your job to be lobbying politicians should try to get them to recognize the needs of business and this has so what kind of response you get. Well you're talking to a real live business destroying politician that -- are they excited about senior come in the door. How tough tough tough tough some some are excited and and some are -- off put by. What they've labeled as sort of a broken record of the business community all do is come up and talk about costs and competitiveness. Because that's all my members care about and it's an area where we have not. We have not done well -- broken record that's all of those things that the make employers wanna come into the state that's how horrible have a space to hear that brokered record. John what an ugly thing.

John -- give. Give some remarks to what may be the executive board of associated industries and coined. A phrase. Of what he would like to see the outcome be in Massachusetts I was I was really instantaneously attracted to -- it's pithy and it catches it all. Invented here. Manufactured he absolute full words ping ping says at all in my opinion absolutely but we doubt what you are looking for a is so let's get our shoulders to the --

There needs to be some follow through and I think what the speakers referring to is something that. You know -- side -- wrote about today in the goal I don't know if Steve's coming on this morning or -- already out every year he's Alyssa is always and he'll listen is oh so you know. Invented here. Captured by someone else. Exploited in another jurisdiction is the current model -- and what the speaker I think is trying to do is respond to our. Observation. That you need to create job opportunities in other parts of the state in other areas that aren't perhaps. You know the college educated Indians degree -- job opportunities -- more blue collar. And and invented here and manufactured here would do that and there are lots areas in the state where you can still do manufacturing successfully. If you tightened up the cost structure that. I'm thinking a place like New Bedford Fall River. --

drop international law fought for the speaker for the -- capsule but do you think they really want new companies coming in because I I this I know it sounds incredibly cynical. But if you want I don't if -- if -- does have a business model of Democrats. They get their votes from urban areas mostly right cities what our cities there wholly owned subsidiaries of the state. They are exist. Because of the state pays everybody who lives there to live there and they Spain they support state government provide the revenue. And provide the welfare the aid to families who depend -- you have basically tethered to the state. Well what would be working people if the state wasn't fighting to keep -- jobs out of the state. Right well so of the what do they care if they're driving employers are of the state -- a more federal money to support more people on the city's. They create new voters for Democrats all the time and drive. The -- conservative rational voters out of the state.

Well I think that the challenge it particularly in this budget climate is not to increase. The taxes that we all pay it's to increase the number of people paying taxes and the only way you can do that is through job opportunities. You referenced earlier this morning a nine point 3% unemployment rate that's a hundred and 40510000. People who are out of work the misery index what does -- doesn't mean is that he doesn't measure the Bureau of Labor Statistics collects another series of data called view six of what that measures is not just the folks who are. Out of working actively looking. But also measures the number of folks who've who've become discouraged -- not looking anymore. There working part time for economic reasons meaning they can't find a full time job actually take a part time job just to get by. Or are there working outside of the Arab customer profession so. I use the example it's an attorney who's working as a bartender because they can't find a job offer Russia. So generally the rest of the best rule some for that second series of data -- double the official unemployment rate. Connect usual a truer measure really has little -- that's the rule of thumb so we're running a team of only 16% got bottles and discourage workers and -- folks who are not working the way. All we air they would like to be working so it's a far more profound. We measure of misery. And also has a direct impact on tax revenue and and also some other. Social --

happy news guy we gonna ask you to stay for another segment of the call I don't know what also Noel so we gonna do it's a miserable day here and you might as well stick a match to welcome mr. misery John I guess our guess misery from associated industries -- get. And we'll be back taking your calls at 6172666868. TomTom AM 680 WRKO.

One or more hours and hours seven days a week minus of course commercial breaks and silly little things waiting to talk about what's important. Welcome back in the midst of they what -- climate change that -- wanted -- climate change moment Shelby sky. Broadcasting live from. It sure is warm up around here is an.

It sure as well as warmed up but John Regan he's thrown some bombs in his -- that Massachusetts has adopted a series of policies that are unique to Massachusetts no other state has these policies. It creates a cost burden on Massachusetts businesses.

our elected officials want desperately to drive John Reagan in the business is he represented out of the state and they're working hard -- he's fighting back. The noble warrior that he is -- thank you for doing that John and thank you for being willing to show your face of public yeah considering new racquet you'll represents such disreputable people the repairs those who create jobs that's right through essentially -- and that's 6172666. And yes.

The table again snow globe is reporting a nightmare only 3% unemployment rate do you say to us based upon the real reading by statisticians -- knowledgeable people. Should really double that. Because their whole number of people who would discourage done -- time just -- kind of drifted away because they know there's nothing out there so they -- is doubly miserable that we'll.

This is ugly -- harsh column unemployed. What what should we -- maybe non commercially viable or something something a little more gentle a 61726. Series is not yet passed just like something like they sound like a heater when you say the unemployed at the -- ER -- it would John -- from associated industries --

I've -- to Vietnam ended. Good to hit it broke a record of -- I want you wonder where that you are. Some guy that -- the state that sort of my -- took casualties he had sent. So how long those guys day in day out to be let you know I -- and can only -- explain what the job that -- leaders -- age.

But I'm I'm happy to report that both of those individuals to check in with those regularly. When public policy as it being discussed so I have to say that. And you've put your finger on two members who. I think tend to try to field the more responsive so. From -- from my present and our experience and with them. -- Walter Timothy has been a positive and Bryant and solaris are senator X 6172666. -- lot like that response by the -- canal runs and wallop which are tunnels say throw out every incumbent they'll say well what about the incumbents who voted against. The sales tax. And support a NBC's around I'll I'll have -- that's me I don't want facts I just make a lot of -- Hi I wanted I should be ignoring the fact that we have a system is dysfunctional -- fighting business unlike the thing I want is generally more energy to a dog cat 61726668. Succeed Donald inexorably with Todd Tom and most importantly John -- about employment challenged. Ha -- employment challenged the way people wouldn't feel badly about themselves and that's our it was pretty good O'Donnell --

I commented I gotta get -- opinion on that recent sales tax increase. I mean that had to be the dumbest thing you could do in that India economic meltdown. The legislature raise the -- exactly 5% so really is there any hope I mean they get that at this past spring.

clearly I think it's time to see some of the effects of that in terms of diminished retail sales. Yeah any time you tax something you're gonna get less of it so. I think the far more prudent course of action is to try to grow the number of jobs not to increase the tax the sales tax increase. Gave people a sense of excitement that the the for the way to fight back against them all and all the big spenders. But I you know devastate people with the with top heavy government everybody wants to drive to New Hampshire now. But you go audio like so while she's only twenty minutes away I might as well go up there are -- by buying there and not give the money to the ball.

It's craziness. John realistically in this economic mess it's more than national it is global. Is zero way I agree with the logic go to -- stated we should be growing that tax paying base as opposed to increasing the tax rate. Common sense perfect sense Democrat or Republican should embrace that without any equivocation. In this type of economic climate how do how does a state go about trying to grow that job base.

Well again I think is the the first thing you need to do is look at your competitive position and you've got to figure wrote. What of the impediments to job creation here in Massachusetts. Talk to business leaders talks to talk to folks who actually do employing. People and asked them one of the challenges. There are other folks who use the expression that here in Massachusetts. It costs too much to add a job. So in this environment where. The unemployment rate is as we've already discussed even companies that are here and successful. And making a go of it. The last thing that they're going to do. Is add new employees until they're absolutely positively certain that this recession has oversaw. You know getting massachusetts' own house and or I think as the first will it help if we raise -- taxes for unemployment insurance. I don't like it you know and that's that the situation there is. You know that the unemployment insurance trust fund because of the high levels of unemployment. Is going to be out of money by January we're gonna be about fifty so.

million dollars -- second headline in today's -- it's about the unemployment -- and it's about the unemployment -- insurance trust -- running -- don't do that that's happened before they go to the federal government -- repay it when the economy -- that exact steps to -- yet but that was fine since -- federal government has some limited amounts of -- let's get some more -- federal money is employer money by the way that's one of the -- taxes -- that its -- federal tax money that we've contributed over time slice it with John.

Not a good morning pick -- my call -- Tommy gets kind of stole my thunder with and you know growing the tax base rather than he now. Trying to get more out of a few people disabilities -- I got to be the other question no I would stay I was -- how excited they need this research. Mysteries they it is research available. On our website -- you do you guys provide I guess they -- very recently caught.

The real question -- yeah we we do have a website it's it came net dot org a lot of our economic researches there one of the things we publish on a monthly basis. As the game business confidence index that contains a lot of economic information as well as analysis. And if there's anything that. In addition to what's on the website that you need feel free to contact me and I'm I'm happy to provide any information came to net dot. All current John wanted to back the point two meg going to -- to the calls but you were talking about. The hesitation to add a job because any job be at a Massachusetts comes with a considerable and relatively unique expense. You mentioned in the first segment that tax policy tax law that corporations have to abide by. Has been changed what did you say four times what times and lost seven years. So.

So driving down the cost each time the two operating a business in the state I'm sure -- if only if all I found not if billions of death that regulatory or WR kill John Henry from associated industries of Massachusetts I'm --

Hi how are you guys who answered the call yet some covers public ending any. I wonder how well quick analysts -- is -- sent them you know we're class people. My husband has heard it this it and he had found IB yeah I need -- and find out always been kind out. How many did it take it back still going on the public that this.

There are you businesses still going on a Massachusetts. They're trying to get rid of the were those final three as quickly as possible.

What -- actually. Am. I didn't -- and a lot like it and that it will Thailand. People are stored in their small village in shut me I by the court and it.

Please -- you're curious -- white how many businesses have been have been forced to close our last couple years or. How many are left to -- it currently is being here. How are up. -- it's -- my local locally owned retailers as opposed to the big nationals right.

Okay by I can respond generally that -- the of the vast majority of businesses here in Massachusetts are small business. If you use the federal definition of a small business being. This is a 500 fewer employees and less than 25 million calls an annual revenue. About 87%. Of Massachusetts business fits into that category so. The story of master chooses -- very much a story of small busy several percent of our businesses are small business and fewer than 500 employees to them what -- sales of its when he five million point five million in sales in retail of course has been getting killed and that's a huge piece of small business 617266. Succeeds succeed we've got Tom necks and.

York Q good morning top.

But this is Tom curry had it -- certain royal Ontario hey Tom how are you good morning are welcome thanks Elizabeth thanks a colleague John Regan radio.

Yes John and I chatted in the hallway the other day and we feel a lot of a lot in common about what we need as the economy here in Massachusetts in terms simple. Growing manufacturing base flowing energy -- was -- and creating instability in the tax code. I just wanted to see if we --

I haven't. Or -- we just nosy be expanded powers that Governor Patrick who requested that I really wanted to silence the legends let's Governor Patrick must address this guy right now let's Obama is now into how hot hot hot -- snow swollen. Does my -- there's not a Venezuela. Since this is unbelievable. All right so while we've got seats are coming up next John -- thanks for comin' if you wanna Sarah after the -- segment you know he's got -- around yeah we're gonna talk I don't know I don't know if that's -- happy and it's they the website once again if you wanna get more information is team in net AI AM NET. Dot org. And you can gather all the information on know how the Democrats are trying to drive business out of the state of Massachusetts state should for more on 680 WRKO.