Laffer explains why people flee CA

Laffer explains why people flee CA

Laffer chart 2Dr. Arthur Laffer helped design the Proposition 13 tax cuts in California in 1978, which undergird what little prosperity California still has; and President Reagan’s 1981-83 tax cuts, which provided 25 years of prosperity, with two minor recessions (because the government ignored Laffer’s advice), until the foolish policies of Republican President George W. Bush and the Federal Reserve Board crashed the economy in 2008.

Laffer also heads the Laffer Center at the Pacific Research Institute,’s parent think tank.

His new article explains why people are fleeing California:

Anyone who has ever watched Animal Planet should be familiar with migrations. Geese do it, wildebeests and whales do it, turtles do it and, yes, people do it too. To migrate is a natural phenomenon.

What’s interesting about most migrations is their purposes are generally positive: sex, food, sun and other such motivations. “The grass is always greener” is what they say.

For humans and, to a lesser extent, animals, a number of migrations also occur for negative reasons: famine, war, pestilence and, yes, taxes without corresponding benefits.

Population outmigration can be a key marker for a disturbed society with deeply rooted policy flaws. It’s a far better sign of a state’s health to have people lined up on its borders trying to get in than it is to have people lined up on its borders trying to get out.

Over the past 165 years, California has grown at an average annual compound rate of 3.8%. But in recent times it has morphed from being America’s (if not the world’s) greatest people attractor to being a massive population and jobs repellent (see actual population in blue on the chart above).

And there really is no end or solution in sight. If it weren’t for net immigration (people who move from another country to California), California would be a mere shadow of its present size (the population from 1960 on without net immigration is shown in red).

See the full chart and read the rest here.


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  1. Ulysses Uhaul
    Ulysses Uhaul 19 May, 2014, 07:11

    Ah……a great travel article……

    Great way to launch a business surge for the beginning of the week.

    Doomers we have specials on Chineese packing tape….guaranteed to please!

    Reply this comment
    • Ricky65
      Ricky65 19 May, 2014, 08:31

      There’s a little problem with your business model. It would appear all your paying customers are leaving the state which leaves your future enterprise in doubt.
      Maybe that’s why U-Haul charges twice as much for your rentals leaving the state as renting from other states to come here to Taxifornia.
      With your connections maybe you should start lobbying your friendly Dema-Rat state legislators to provide free vouchers for their constituency of moochers, freeloaders, drug addicts,illegal aliens and criminals to move about the country at public expense.
      Heck, we could even create a new state agency with 24 hr hotlines to promote the project and give tips and advice to these folks on where the best in tax grazing opportunities exist in state and out.
      Just worried about your future U-U because any true businessman with an attitude like yours must be a job climate denier.

      Reply this comment
      • Donkey
        Donkey 19 May, 2014, 09:15

        As it turns out Ahaul is a FF that runs his Uhaul business on the side, he’s getting paid no matter what happens. 🙂

        Reply this comment
        • Ricky65
          Ricky65 19 May, 2014, 14:03

          Figures. I knew deep down this guy had to be a tax grazer himself.

          Reply this comment
          • NTHEOC
            NTHEOC 19 May, 2014, 16:44

            Ahh, it never gets old hearing the envy and jealousy of the haters!

          • Donkey
            Donkey 19 May, 2014, 20:37

            It has nothing to do with envy ntheoc, and everything to do with a crooked scheme being used to enrich a few at the expense of the non-RAGWUS citizens. You seem to feel that because you received a job as a FF from the inside connections of your Father that you are some kind of royality, as with all anointed the RAGWUS will fail. 🙂

          • S Moderation Douglas
            S Moderation Douglas 19 May, 2014, 21:45

            Not envy.

            Obsessive paranoia.

            Irrational fear of unions.

            And making up imaginary words.

          • Donkey
            Donkey 20 May, 2014, 10:34

            Public employee unions have cost the US over $50 trillion in wasted labor over the last 50 years negotiating with the RAGWUS puppets, that is money that could have improved the lives of all Americans, not just the few that are able to weasel their way into a RAGWUS job that requires no performance in duties to reach the $100,000 mark, and in the end produce absolutely nothing but a huge unearned pension.

            RAGWUS is not just a word simpleton, it is an acronym that defines the crooked scheme public unions are playing against the private sector citizens, and is very accurate. 🙂

          • S Moderation Douglas
            S Moderation Douglas 20 May, 2014, 14:54

            Is it *really* an acronym if only one person EVER uses it?

            Even if that person obsessively overuses it?

            Or is it more like “CalTURDS”; something that the kids like to roll around on their tongues?

          • S Moderation Douglas
            S Moderation Douglas 20 May, 2014, 14:55

            The glass is STILL at least half full.

          • Donkey
            Donkey 20 May, 2014, 20:23

            Google it S&MD, it’s all over the net!
            The glass has nothing in it. 🙂

          • S Moderation Douglas
            S Moderation Douglas 23 May, 2014, 15:50


            S Moderation Douglas: Google; what is “RAGWUS”?

            Google: “Did you mean ” what is RAGWEED”

            S Moderation Douglas: close enough.

          • Donkey
            Donkey 24 May, 2014, 11:06

            S&MD, as with most of your posts, you are wrong, the RAGWUS is a simple find if Google is used correctly… 🙂

  2. BillyBS
    BillyBS 19 May, 2014, 12:56

    The Governor points to all of the above as a sign of a dynamic. robust economy. The more people leave the better.There is no better indicator of a healthy economy than the a high poverty rate, and a large percent of population on state medical care. The dying companies like Toyota leave making room for more people of limited education and skills. This is good.

    Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 19 May, 2014, 21:36


    We fear not….we will just move to some other state and make doomers miserable enough to start the Pack and Ship cycle all over again….

    Reply this comment
  4. Rex the Wonder Dog!
    Rex the Wonder Dog! 19 May, 2014, 23:55

    Dr. Arthur Laffer helped design the Proposition 13 tax cuts in California in 1978, which undergird what little prosperity California still has; and President Reagan’s 1981-83 tax cuts, which provided 25 years of prosperity…
    Tax receipts did go UP, but the TRADE and BUDGET deficits went up even higher, faster and at a larger % than the tax receipts. So even Raygun was not the shining star made out by many,

    So I am not the Ronnie Raygun worshipper many are, because RR was the one President Most responsible for running large, out of control, enormous budget and trade deficits, especially budget. Obama has take the budget deficits to new and staggering heights, but every president since Ronnie Raygun have run HUGE twin trade and budget deficits, except Clinton who ONE YEAR balanced the budget- but ONLY b/c he left social security offline. They are all knuckleheads.

    Reply this comment
    • Donkey
      Donkey 21 May, 2014, 11:36

      Rex, I don’t get your beef with RR, I have never seen a POTUS turn a nation around like he helped do in my lifetime. Sure he ran deficits, but then so did every POTUS since 1971. At the time the total deficit was manageable if the government would have done what Ross Perot suggested and stopped the growth of government. I am much more concerned about the trillion dollar deficits of this loon we have running the nation now. 🙂

      Reply this comment
      • Bud Led Ted S.
        Bud Led Ted S. 22 May, 2014, 06:56

        Seems like alot of the clown posters out here made bad career choices and live lives of regret, envy and frustration.


        Reply this comment
  5. Bud Led Ted S.
    Bud Led Ted S. 22 May, 2014, 07:01

    LOL– Duncey liked Ronnie Raygunz????

    Predictable— you need to read history little buddy. 19 tax increases and a huge law violation on behalf of the Contras ™. The only people alive today on the planet who think he was any good are a few Republi-baggers and his family!

    Read up little buddy!

    Reply this comment
    • Donkey
      Donkey 22 May, 2014, 22:52

      Look TCS, I can see that I would not be an insider with the types you hang with, because I don’t hang with cowards and thieves. RR was a hundred times the man you believe yourself to be, and a thousand times the POTUS of the clown we have now. 🙂

      Reply this comment

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Arthur LafferJohn SeilerRonald Reagan

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