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The following column appeared in
The Wall Street Journal on January 4, 2011:
California Fleeing
Governors across the country adopt a new economic strategy: Raid California for its businesses.
By Stephen Moore
Just when you thought things couldn't get worse on the left coast, along comes more bad news for the Golden State.
Across the country, Republican state legislatures and governors are adopting a new economic development
strategy: Raid California for its jobs and businesses.
At least three Republican governors have said as much in interviews. The idea is to offer lower taxes, a more
business-friendly atmosphere and the right to be left alone from overzealous regulators. "We just keep inviting
California businesses to look at the economic climate in Texas, where we treat businesses like assets not
villains," said Texas Governor Rick Perry.
California has some of the highest tax rates in the country, the worst bond rating and a multitude of nettlesome
regulations. Chief Executive magazine just ranked California as the most antibusiness state in the nation.
A new study by Joseph Vranich, a California-based business consultant, found that 144 major companies relocated
plants, research facilities, headquarters or their entire operations out of California in 2010. That was more
than triple the pace of job-creating firms leaving in 2009. Mr. Vranich said that the outmigration could
become "a stampede" in 2011. "Business owners tell me every day that this is just not a hospitable place to
do business anymore," he said.
Other Republican governors with their sights on California include John Kasich of Ohio and Rick Scott of Florida.
Mr. Scott told me in an interview that "we are going to create hundreds of thousands of jobs in Florida over
the next eight years, and we will advertise our pro-growth policies to businesses in places like California
that don't share our pro-business policy orientation." He added: "Not having an income tax is a huge advantage
over a high-cost state like California."
Mr. Kasich told Reuters earlier this month that he will try to persuade California venture capitalists to relocate
high-tech firms to his state. "More of the same is not acceptable to the business community in California,"
he said.
Unemployment in California is currently 12.4%, and over the past two years the state's jobless rate has ranked
among the five-highest in the country. Businesses complain that the extraordinary power of unions, regulators
and environmentalists has been an incentive to leave or not come in the first place.
We will see if Democrat Jerry Brown, the new governor, will do anything about that. If not, California's loss
may be a boon for Florida, Ohio, Texas and other states.
Doc Hemp Update .....
WELL .... 8/2011 ... Jerry Brown has only exacerbated the problem .... We are spiraling down the drain with
even more
Cap & Trade ... utility increases up 23.9% shortly in our city due to the California only Cap & Trade law going
into effect and signed on by this socialist governor and state. Brown is a blow torch in a tinder box!