Democrats in Crisis: California Job Exodus Accelerates
A record number of companies left California in 2018 for states with a better business climate. A new report shows that Texas remains their No. 1 destination.
California business environment has gone from bad to worse. Thousands of businesses have been pulling up stakes and moving elsewhere.
The business climate has gotten so bad terrible that, for the first time ever, business-relocation expert Joe Vranich is actively telling clients “to leave the business-hostile state because its business climate continues to worsen.”
Insider’s Business Daily reports:
“California politicians threaten the well-being of businesses with one harsh law or regulation after another,” he wrote. “Now, in 2018, the state has reached a new low with an awful law.”
That “awful law,” of course, is California’s Immigrant Worker Protection Act. It sounds innocuous, even virtuous, but it isn’t. The law basically calls it a crime to follow federal immigration law. Of course, failing to follow federal immigration law is also a crime. Companies can’t win, they can only lose.
The truth is, thanks mostly to Silicon Valley and the digital media boom in Los Angeles, California is indeed doing well right now economically, at least in a macroeconomic sense. A massive influx of Southeast Asian investment money, looking for a Pacific Rim-friendly foothold in the U.S., has helped.
But don’t be deceived. In the next downturn, the state’s stock-market dependent finances will once again tumble deeply into the red, and the economy will no longer be spinning out new jobs. By then, many of the long-term, stable employers will have left.
Then what? California is already home to roughly one-third of the nation’s welfare recipients, despite having just 12% of the nation’s population. And, as City Journal recently noted, “nearly one out of four Californians is poor.”
With the jobs exiting stage right, so are the citizens.
An unprecedented number of Californians left for other states during the last decade and in the last year that exit has accelerated to historic proportions.
About 5 million Californians left between 2004 and 2013. Roughly 3.9 million people came here from other states during that period, for a net population loss of more than 1 million people. Last year California saw a net loss of almost 150,000.
Over the past 20 years, California has experienced its slowest rates of growth ever recorded and an unprecedented migration of residents to other states. From 2006 to 2016, California’s population grew by 9%, which was low for the state and barely higher than the rest of the nation (8%).
More than 10 million Californians are immigrants. According to 2015 estimates, 27% of Californians (10.7 million) are foreign born. That is a higher proportion than in any other state (New York is second with 23%) and twice the nationwide share (13%).
California takes more and more more money from people in order to solve its problems. But Californians aren’t getting better government service for this money. Thanks to the state’s debts and pension crisis, all that extra money is going to pension obligations. These obligations continue to grow as part of the budget.
And don’t even mention basic cost of living.
The median rent for a two-bedroom apartment in the Los Angeles area is $3,200 and in San Francisco about $4,500. To actually buy a home is impossible to do, let alone discuss. California’s median price statewide for an existing single-family home? $600,000.
Taking that into account, and the overall history of the growth of California, the mass exit is bigger than just the figures show. And the problem has accelerated over the last few years.
You do the math. If the present numbers continue, that number over the next decade could well reach over 2 million. The Democrat controlled state is in crisis.