Businesses Flee State In Droves

Steven Greenhut: Liberal groups such as the Public Policy Institute of California have, along with the state’s legislative Democrats, made a cottage industry denying reports that businesses are leaving California. They note, correctly, that relatively few companies pull up stakes and move east. But these folks steadfastly ignore the evidence that California businesses, while leaving the brick and mortar headquarters here, tend to expand their job base elsewhere. They don’t look at the many jobs that are never created here because of the state’s punitive tax and regulatory climate. Here, Joe Vranich, reports, “In the seven weeks since the last report, another 11 companies have left California completely or re-directed substantial capital to build facilities out of state that in an earlier era would have been built here.”

I love California and am not going to leave it, but I work for a wage and am not a business owner. I can’t blame businesses, who often live on a tight margin, that decide to head to where the government is only an annoyance rather than their all-out enemy. The state won’t turn things around until more policy makers recognize that their policies are chasing away businesses and that these policies will make economic recovery that much harder in California. The weather and scenery are great, but people have to earn a living. Not everyone can be a government employee.


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  1. John Seiler
    John Seiler 27 January, 2011, 20:46

    Last taxpayer in Taxifornia, don’t forget to turn out the windmill-powered, AB32-compliant lights.

    Reply this comment
  2. Bruce
    Bruce 27 January, 2011, 22:51

    There’s no doubt California’s tough on businesses. I love the quote from Frama-Tech’s owner. And it’s a public service to highlight companies that are investing or just up and moving out of state.

    At the same time, this list is by its nature misleading. A state the size of California will have business churn. They’ll come and go. Who’s keeping the list of start-ups, expansions and in-state investments? (For instance, Southern Aluminum Finishing, based back east in Atlanta, just signed a deal to open a West Coast plant in little old Redding.)

    What web company’s taken the world by storm the past few years and is now worth (on paper, anyway) $50 billion? Oh yeah, Facebook. Based in? Palo Alto. What computer company is now bigger than Microsoft? Apple. Based in? Cupertino.

    My point’s just that California still has a lot going for it. Doom-and-glooming without recognizing the state’s strengths might be cathartic, but won’t help develop a sound economic strategy.

    Reply this comment
  3. John Steele
    John Steele 28 January, 2011, 08:00

    I’ve been trying to alert our Reps in the Legislature about this exodis from California, but nobody wants to hear it. Stuff like AB32 is killing the job climate and these guys are so hooked on idealogy that they have refused to listen. I suspect that one day we will be like Michigan, which now has no jobs due to taxes and the climate change stuff. Texas is starting to look pretty good to business.

    Reply this comment
  4. Manny Cosme
    Manny Cosme 29 January, 2011, 10:15

    The great state of Texas is doing a great deal of campaigning for California businesses – with success. I don’t recall the count but at a business convention in Dallas in September 2010, the governor boastfully spoke about the business moving to Texas from California. Acknowledging the California business owners attending the event, he went further with his comments and said that California is NOT the place to have a business in because it is not a business friendly state and his state, Texas, is.

    I think that with the new governor in Nevada, I will not be surprised to see them campaigning heavily in California too.

    Reply this comment
  5. Whitey Ford
    Whitey Ford 11 September, 2011, 16:22

    California is going down the tubes. Demographically and economically. Thank a “progressive” on your way out.

    Reply this comment

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