According to The Wall Street Journal, 70 businesses have left California this year at an average of 4.7 businesses per week. Twenty percent of these businesses will relocate to Texas, where the unemployment rate is 8% versus California’s 12%.
Over the last three years, Texas added 165,000 jobs, while California shed 1.2 million. California now has the second highest unemployment rate in the country after Nevada.
Many businesses cite California’s unfavorable regulatory climate and labor laws as key reasons why it is difficult to operate a business in the state. For instance, California is one of only three states that requires overtime pay after an eight-hour work day.
Adding to California’s woes are its fiscal troubles and failed experiment with direct democracy. Since California relies heavily on the “wealthy” to support its tax system, revenues tend to collapse during recessions.
Sound familiar?
According to The Economist, personal income tax accounts for over 50% of California’s revenue. Californians earning over $100,000 per year account for over 80% of income-tax revenue. The state allocates nearly 10% of general fund spending to prisons. Its credit rating is now the worst among the United States.
A major reason why California is nearly ungovernable is that its ballot initiatives have spun out of control. In the 1960s, only 9 initiatives qualified for the ballot. Between 2000 to 2010, that number increased to 74.
In turn, many of these initiatives either limit taxes or mandate spending, making it much more difficult for the legislature to balance the budget.
At this point, I am convinced that only a state constitutional convention can solve California’s woes. Frankly, citizen democracy has gone too far.
Reflections of a Rational Republican 
According to The Wall Street Journal, 70 businesses have left California this year at an average of 4.7 businesses per week. Twenty percent of these businesses will relocate to Texas, where the unemployment rate is 8% versus California’s 12%.
According the the Pino Street Journal, 0% of Rational Republicans have left the state of California.
The Economist, and frankly me too, wants to know why.
Stay tuned….
Given that a large percentage of the Rational Republican’s wealth is locked up in his house, such a decision would be an NPV negative proposition. 😉
What do you think about this?
Thanks for sharing.
A thoroughly depressing article.
A thoroughly depressing article.
I think you might consider other metrics besides strict financial gain/loss on the home. You can’t afford to stay.
For example, how much in income taxes [and other taxes] are you losing by staying that you would gain if you moved to Texas? Or North Kackolackey?
The only problem is all the high paying jobs are in New York, Boston and San Francisco. I’ve lived in all three and all have high taxes. SF is the best of the three and I despise New York.
I’ve resided in Vegas long contemplating a move to California. Ocean-wise, landscape wise, etc. it’s got a lot going for it. It’s sad that its Liberal government, and those who elect it, is/are driving it into destitution and it is one of the top reasons I haven’t relocated to date. It’s easier to live in Vegas and take 10 vacations to California than living in California and taking none.
I know it’s more than home value likely keeping Sean there, but I’d also guess that he’s thinking of ways simply to increase his income to offset the taxes. 🙂 That is the capitalist way, isn’t it? “How can I earn more?” vs. “How can I take more?” If only the State would share the same mentality they’d be in far better shape.
Sadly the Liberals who continue to run that State are in denial . Like everything else they have run into the ground . Things have to get worse before they get better . A lot worse .
Yet for some strange reason, the people of California continue to vote for Democratic majorities.
It simply makes no sense to me.
Yet for some strange reason, the people of California continue to vote for Democratic majorities.
Being a Leftist makes you mean
I love it.
“Moral accounting.”
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Keep up the good work on this blog!
Thanks, Aaron!
I appreciate the support.