From American Progress Action:.

The Whitman plan assumes that all business regulations can only increase business costs and that they do not create any economic benefits.... But that is often not the case.... Meg 2010 says the full implementation of AB32 will cost $100 billion and destroy one million jobs, based on a report by Sacramento State University business school professors Sanjay Varshney and Dennis Tootelian. These estimates diverge radically from all the other studies of AB32, such as that of energy economist Matthew Kahn of UCLA.28 Meg 2010 depends upon another Varshney and Tootelian study that purports to find that business regulation in California costs about $17,000 per resident. This estimate-one- third of the state's gross product!-is simply not credible. Indeed, their study was called "useless" by the nonpartisan California Legislative Analysts Office, was labeled "one of the worst examples of shlock science" by economists John Haveman and Christopher Thornberg, the founders of the Beacon Economics forecasting firm, and was said to have "no basis in reality," according to economics professor David Neumark of UC Irvine.

For the full story, please visit http://www.americanprogressaction.org/issues/2010/08/whitman_analysis.html.

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