California businesses are leaving the state in droves. In just 2018 and 2019—economic boom years—765 commercial facilities left California. This exodus doesn’t count Charles Schwab’s announcement to leave San Francisco next year. Nor does it include the 13,000 estimated businesses to have left between 2009 and 2016.
The reason? Economics, plain and simple. California is too expensive, and its taxes and regulations are too high. The Tax Foundation ranks California 48th in terms of business climate. California is also ranked 48th in terms of regulatory burdens. And California’s cost of living is 50 percent higher than the national average.
These statistics show why California’s business and living climate have become so challenging. But the frustrations that California entrepreneurs face every day present a different way of understanding their relocation decisions.
Erica Douglas, a young tech entrepreneur, moved her company, Whoosh Traffic, from San Diego to Austin, Texas, a few years ago. Here is what she had to say:
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Not leaving, but barely hanging on, waiting for the siege to lift. Working out of a stall at the old Treasure Island Hobby Shop Garage, he and his partner Matt built a roaring business in ten years.
ReplyDeleteNow, nothing.
(My son is the handsome devil on the left)
https://www.photomatica.com/about
My son and a couple of his buddies bought a motor home, here in Michigan, and hit the road, playing music. Eventually they ended up in San Luis Obispo. He worked for a company making Jewelry, our of decommissioned Nuclear bomb materials, mostly the underground cables, melting the copper and making bronze, then making anti war type of jewelry, like bottle openers that said, Beers not Bombs, St. Christopher medals, and also some high end looking pieces that were really nice.
DeleteHe moved up and was eventually the second in charge, doing all of their online advertising, their ordering, and still doing some assembly. They even got an order for the 50th anniversary of the Peace Corp. from the corp itself.
He just couldn't stand it there, and after he got married, him and his wife moved back to Michigan, with him still working, just remotely. They would ship the material to him, and he and his wife would assemble it here in Michigan, and ship it back to California. I am not sure how they handled taxes and pay.
Now, he was working as an electrician's apprentice, but lost his job due to covid 19. His wife works for a hospital, as the food services manager.
We have a shop here in my town, a small engine repair, and a stihl sales place that has gone out of business due to the covid 19 problem, after at least 25 years.
pigpen51
anyone from texas knows this been going on for 15 yrs. gtfo we dont want\need you or your fed up views here
ReplyDeleteThis is not new in Cali. My employer-one of the largest-had a small Silicon Valley operation that had to find a new home in 1980 (in effect, it lost its lease and had to move-could have been across the street or across the country). Given the high cost of living in the Bay Area and the fact that it was becoming prohibitively expensive to even hire the new college graduates needed to stay competitive in the innovation game, it was decided to move lock, stock, and barrel several states away.
ReplyDeleteI think the "leaders" of Cali ought to take the decision by Schwab to move out of Nancy's San Fran as a sobering, massive vote of "no confidence". Not that those dumb fuckers will ever see reality, though.
Just waiting for the legislature to ram through a massive retroactive "departure tax" for their former citizens who have given the state a collective one finger salute on their way out.
"Erica Douglas, a young tech entrepreneur, moved her company, Whoosh Traffic, from San Diego to Austin, Texas, a few years ago. Here is what she had to say:"
ReplyDeleteSan Diego to Austin? I guess she likes her communism cold in the winter.
Come
ReplyDeleteAnd
Live
I_
Florida
But leave your liberal politics back in Cali!
I've got a shirt with a Tennessee State flag on the back under the words "Don't California My Tennessee".
DeleteHate to have to say it, but California has metastasized, since, as you know, they never leave the liberal politics behind.
DeleteI saw a story yesterday about silicon valley employers DEMANDING that, workers who work from home and move to Colorado or anywhere else where the cost of living is lower, TAKE A PAY CUT.
ReplyDeleteNemo
When I worked in Silicon Valley, my company was trying to convince people to move to India to work for a few years. When I asked if I could keep my Silicon Valley salary, they said 'of course not', it would be a similar rate for India. I'm pretty sure no one took them up on that generous offer.
DeleteWhen I worked for Western Electric (RIP) back in the 60's, the base salaries for management were the same nationwide but there were varying supplements for cost-of-living differences here and there. I started in Atlanta which happened to be a zero supplement location at the time, but when I moved to New Jersey, I got a monthly boost.
DeleteWhy are you all so critical of California? (cough) It's a GREAT place to live! (cough, cough)
ReplyDeleteWhile I’ve never had so much work lined up, at least 8 months out. All this comes with a cost. Our little town of 204 people, with kinfolk on my mother’s side going back over 170 years. With the second cleanest lake in the United States, Smith Lake. We have not just an influx of Yankees now the Californians and the People from Oregon and Washington state are buying up land. And all they do is bitch about we need this law and that law and why are things so bad here. They bitch about gunfire, being a Dry County, chicken house smells, log trucks.
ReplyDeleteMy dad was an adding machine mechanic who worked at Underwood Elliot Fisher in Atlanta from the Depression 'til 1948. In the late 40's a friend of his named Johnny something sold his house, loaded his family and belongings onto a truck and headed for California. I don't remember where he landed out there, but he spent one night, turned around, and came back. I never heard why and I imagine California was a great place in those days.
ReplyDeleteI continue to hope that the liberals escaping from their current "progressive paradises" understand how they fouled their own nests with their progressive/liberal policies and, in turn, change their way of voting/governing/thinking in their new homes. I doubt they either will or even have the cognitive ability to change but I continue to hope. regards, Alemaster
ReplyDeleteMaybe we could keep them from voting for five years or so.
DeleteCalifornia: Sir you owe us $2500 for your departure tax.
ReplyDeleteSir: Go fuck yourself California, come and get it!
Don't expect them to assimilate into the local population. The way Austin is right now, you wouldn't recognize it as a part of Texas. California people bring their belief system with them, and it never occurs to them to wonder just why California is so completely fucked up and Texas is not.
ReplyDeleteI actually went through this once. My church in Ohio decided to import a new pastor from California. I told them it wouldn't work out, and it didn't. He lasted just a little over a year, then quit to take up work as a web designer - still owing the church money. Good luck on collections.
figures San Diego to Austin. The Socialist capital of Texas. Pulling the Same shit different area.
ReplyDeleteEmotionally and spiritually, I evacuated from the mountains of north California in the mid-1960s.
ReplyDeleteI didn't care where I landed, I just knew California was the wrong place for me.
Physically, I owned a restaurant business in Chico California until 1989.
Then I abandoned the place.
Sacramento is not California.
Hollywood is not California.
frisco is not California.
Schwarzenegger campaigned the recall of California governor Davis based on the horridly-awful thought of the chinese buying California bonds at a billion with a 'B' US dollars a day.
Years later at the end of his governing, the bumblebrats were still borrowing a billion dollars a day from the chinese.
I imagine some of that went to 'Public Employee' pensions...