Last year, Americans in blue states and cities across the country fled the violence and disease in their cities, buying homes in places like Florida, Texas, New Hampshire, and Wyoming. The truth is, many of them had been looking for the chance to get out for years, but until remote work gave them the opportunity, they were stuck paying high taxes and suffering the high costs of living. With COVID and looting subsiding it was possible the trend would reverse, but in fact in 2021 in California, it’s accelerating.
A new study from Stanford reports that more businesses have already left California in 2021 than did in all of 2020. Brad Polumbo reports in FEE:
California is in decline. The Golden State lost population in 2020 for the first time in decades, and the exodus included celebrity entrepreneurs like Elon Musk and Joe Rogan. A long list of businesses, some as well known as Disney, Hewlett-Packard, Nestle, and Toyota, have either relocated or sent some jobs outside of the state in recent years.
But just how bad have things really gotten in California? A new study from the Hoover Institution at Stanford University analyzes the anecdotes and finds a damning trend.
Authors Joseph Vranich and Lee E. Ohanian examined available reports of companies relocating their headquarters outside of the Golden State. They find that 265 major companies have moved on to greener pastures since January 1, 2018.
The study also reports that the rate at which businesses are leaving the state is rapidly accelerating. For the first six months of 2021, the rate is nearly twice as high as it was last year. That means more businesses have already left California this year than in all of 2020.
The authors note that this count is, if anything, an enormous underestimate. Many small businesses exiting the state do not receive media coverage and are not required to file compliance reports, so many of their exits go uncounted in the analysis.
These businesses take more than just jobs with them when they leave the state. The local communities lose out on investment, income for local businesses, tax revenue, philanthropic work, and much more. So, it’s of the utmost importance to analyze why businesses are leaving California en masse.
Per the study, major reasons for leaving include “high tax rates, punitive regulations, high labor costs, high utility and energy costs, and declining quality of life for many Californians which reflects the cost of living and housing affordability.”
Take a look at that last paragraph again. People aren’t just leaving California because of the looting, rioting, and COVID regulations. They’re leaving because the state treats their businesses like a piggy bank, rather than as a valued partner. In America’s growth corridors, governors are working with businesses to create an environment where everyone wins. In deep-blue states like California, governments are only looking out for politicians and union bosses.
Originally posted on Your Survival Guy.