The biggest threats to Californian jobs aren't across the ocean, they're right next-door.
"Workman's comp is a big issue, but it's just one of many items," Monia said, rattling off a list of California's comparatively high operating costs: energy, rents, labor, taxes. "Even the garbage costs are cheaper in Nevada." ...Sacramento can can loosen some expensive regulations and risk the ire of its leftist residents (while pleasing the more conservative people in the rest of California), but it will have trouble matching the financial incentives offered by neighboring states. Corporate taxes are used to pay off special interests, so the leftist legislature can't risk that revenue stream without losing the money they need to buy votes. There isn't much money available to lighten the burden on businesses without cutting spending, which would also alienate the voters who keep our rulers in power.The exodus of businesses and jobs to lower-cost states like Nevada has picked up in the last year, experts say. Now, with the economy gaining steam, many companies are nearing a point where they must decide whether to expand in California or invest and create jobs elsewhere.
Many have already made up their minds. In a recent survey for the California Business Roundtable, consultants reported that nearly 30% of 50 California companies interviewed had explicit policies to move jobs out of state if possible. And half said they planned to avoid adding jobs in California. Some cited high housing costs, others the widening gap between operating expenses in California and other states.
It shouldn't be surprising that the state with the most natural benefits (weather, resources, size, location) is also the most inefficient. We can treat businesses (and people) poorly and they'll still find reasons to live here... up to a point. I think we're nearing that point now, and our government had better wise up.
Michael, you're absolutely right. Our elected elite acts as if the state is one giant theme park -- so inherently attractive that we (and our employers) will stay no matter what. Any business looking to expand, and who serves a national or global market, will look to do so elsewhere, especially for the manufacturing jobs so highly coveted by Democrats. And it's worse than that. "Core" jobs that go elsewhere, or are never created here in the first place, mean multiples of ancillary and service jobs go (or don't come) as well.
High relative housing costs have always been a problem, but it's one that's manageable if the other costs of doing business were in line with competitive markets. There are dozens of reasons that it just makes no sense to try to create or grow businesses here, absent geographic necessity. We won't see the end of the exodus for years unless some drastic things are done. One suggestion is to attack one big thing (in addition to workers' comp), and that would be a radical cut in business taxes. It would need to be massive, and sold as an offset for the hundreds of other costs heaped on our employers. That could buy some time while the trial lawyers, envoronmental groups, and all the advocates for the disabled, illegal immigrants, more paid time off proponents, etc. have at it. The tax abatement should remain in force at least until the state's unemployment rate falls to the national average.
(sigh of homesickness) My husband and I dearly love our homeland of California, but unless something radically changes in the political climate there, we are never going back.