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Gov. Gavin Newsom. (Photo: Kevin Sanders for California Globe)

California: ‘Closed Until Further Notice’

Elected leaders ignore businesses and people fleeing the state

By Katy Grimes, December 14, 2020 7:40 am

California Governor Gavin Newsom imposed another statewide lockdown on the state’s residents. For many, this is the death blow to their businesses. Signs in businesses everywhere say “Closed until further notice.”

Tesla founder Elon Musk announced he has had enough of the irrational and unlawful lockdowns. Musk is leaving California for Austin Texas, and he’s taking more than 10,000 jobs with him.

Hewlett Packard Enterprise announced it is moving its global headquarters to the Houston, Texas from California.

Oracle just announced they already moved their headquarters from Redwood City to Austin, Texas.

Chief Executive magazine graphic, The 2020 Best & Worst States For Business. (Photo: screen capture)

Other big businesses already left California: Toyota Motor North America, Kubota Tractor Corp., Hardee’s/Carl’s Jr., Charles Schwab, Jamba Juice.

We know why California companies leave for other states: Chief Executive Magazine reports year after year that when CEOs across the country are surveyed, they name California as the worst state in the country in which to have to do business. California has the highest-in-the-nation taxes, one of the highest business tax climates, with the Tax Foundation ranking California at No. 49 – the second worst in the nation, ahead only of New Jersey.

This outbound migration is not just the fault of Gov. Gavin Newsom, but it has ramped up significantly. And while Musk has been building and expanding his business in Texas, Gov. Gavin Newsom has been silent about it – and about all businesses and residents abandoning the state.

Chief Executive Magazine’s  annual “Best & Worst States for Business” survey found once again, “for the 16th year out of the 16 years we have conducted our poll, Texas ranks No. 1. Despite the shutdown of much of its oil industry by the coronavirus recession, the state retains extremely business-friendly characteristics and policies. The rest of the top 10 states also remained essentially unchanged from the 2019 rankings. Similarly, the bottom 10 in the rankings were relatively frozen, with California once again in last place.” (See the full list.)

Chief Executive says:

“California at the Bottom—Again: Business owners—especially companies that make things— continue to abandon the state as fast as they can.”

“Our GDP growth outperforms every damn one of those other states they highlight,” he said at a conference in San Francisco in late June, bashing Texas and Tennessee along the way. “I get it. We’re not going to be the cheapest place to do business. But you knew that 50 years ago. Come on. Stop.”

“The problem is, owners of businesses in California aren’t stopping. Many are still running away as fast as they can, especially those who make things. Newsom’s comment summed up why, implicitly saying this to CEOs: As long as California can count on spectacular growth from tech companies in Silicon Valley and movie studios in Hollywood, don’t expect the state to reverse any of its attitudes and policies that chase many companies away.”

California continually ranks as the worst state in the country in which to have to do business. California has the highest-in-the-nation taxes, one of the highest business tax climates, with the Tax Foundation ranking California either at No. 49 or 50.

According to data from the American Community Survey, from 2007 to 2016, about 5 million people moved to California from other states, while about 6 million left California. On net, the state lost 1 million residents to domestic migration—about 2.5 percent of its total population.

More than 691,145 Californians left the state in 2018. Texas nabbed 86,164 former Californians that year, according to an Orange County Register report. “Census Bureau migration data for 2018 shows in raw terms of people moving, the top spot for Californians is Texas, which got 86,164 Californians in 2018. Next came Arizona (68,516), Washington (55,467), Nevada (50,707), and Oregon (43,058). All told, California had the most exits among the state and that wave grew by 4% in a year.”

Top 10 States for Business

Bottom 10 States for Business

“Consider California’s ‘net domestic migration’ (migration between states). From 1992 through mid-2019, California lost a NET 4.4 million people to other states, California Tax fighter Richard Rider reports. Net departures slowed in 2008 only because people couldn’t sell their homes. But since 2011, more people still leave each year. In FY 2018-19, we lost 203,000, over 30% higher than the year before. Again, note that these are NET losses. Sadly, our policies are splitting up more and more CA families.”

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11 thoughts on “California: ‘Closed Until Further Notice’

  1. Rather than leaving, why don’t you all STOP voting for liberals who have NO IDEA what they are doing running the state. STOP insisting that more taxes are better for business. STOP electing idiots! Sadly, many of these fleeing the state will take their politics with them and ruin the states the run to. It sucks for America!

    1. Comrade
      1/3 poor, 5% drug/booze impaired/ credit card debt far in excess of 5k, student loans, underemployed, few could pay cash bail, many not paying rent, an army of envious bureaucrats dutifully/gleefully knee capping small business with medieval style pokers…..

      What needy becomes….compliant and more needy.

    2. California has a lot of voter fraud. I really wonder what it would look like if we had a free and fair election in california.

  2. This trend has become so striking that any failure to recognize it seems irrational and raises the question of either mental illness or an ulterior motive.

  3. “I am the great Dictator of California Gavin Newsom”. “I demand You riff raff trash slaves serve me and stay locked up in your homes without Christmas”. “NO gifts, no decorations and NO family members allowed or I will have you in jail for 6 months without the right to contest in court!”. “ONLY I have exclusive rights to do what I damn well please and I get the pleasure to abuse you as you stay sick and infected with Covid-19 for years and decades to come”. “For those in LA County and in Great Los Angeles, my favorite Mayor Garlicetti will have the pleasure to impose my wrath to keep you locked in your homes for the next 12 months”. “Ha Ha Ha Ha!”

  4. This is a pre-planned intelligence operation, and Gavin Newsom has been groomed to implement it. It means being frank and honest about the nature of our media and globalism as a geopolitical ideology. What you are seeing is Trump (a product of US Army intelligence) being a catalyst to “divide America” in the controlled breakup of the United States – planned in the 70’s, Andropov-style. You’re seeing an excuse to force California’s “innovation center” businesses to relocate to Texas which will be the new innovation center in the divided State of America as part of a globalist world order. California’s wealth is considered disproportionate in this ideology, and the Government’s (covert) official policy is to weaken and drain the State. Quibbling about policy misses misinterpretation of the big picture about the oligarchy/plutocracy actually pulling the strings.

  5. Great article! But one quote I disagree with:
    The Chief Executive asserts that “Our GDP (the California GDP) growth outperforms every damn one of those other states they highlight,” he said at a conference in San Francisco in late June . . . .
    That’s not true. While the DOLLAR amount of our GDP growth is the largest, the growth RATE often is not.
    For instance, a look at the first quarter of 2019 shows that California is in a five state tie for the 29th best state.

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