
If California's a 'bad state for business,' why is it leading in job/GDP growth? - pbhowmic
http://www.latimes.com/business/hiltzik/la-fi-hiltzik-california-econ-growth-20160722-snap-story.html
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gozur88
Ah, Hiltzik. Never finds an answer he didn't start with.

>The most obvious answer is that the business-friendliness and competitiveness
rankings are pretty much baloney.

No, the most obvious answer is California's built-in advantages are enough to
overcome idiotic government. Trade with Asia mostly comes through Los Angeles
and Long Beach, it doesn't snow in populated areas, and California's #1
population size gives it political clout other states don't have.

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nickthemagicman
Thank goodness places like Africa are THRIVING without all these draconian
governmental regulations.

I guess all this government funded: infrastructure, education, public transit,
etc. aren't contributing AT ALL to California's success, they should really
target Sudan as a model for small government success. </s>

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gozur88
You're making some unfounded assumptions in the construction of this straw
man. The first being that "places like Africa" aren't thriving economically
(twelve countries had higher GDP growth than California last year despite low
oil prices).

The second that businesses in less developed countries don't suffer under a
lot of arbitrary taxes and regulations.

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rndmio
Higher GDP growth as a percentage? Comparing developed economies to developing
ones with that metric isn't particularly useful.

~~~
gozur88
I would argue it's the only number that's useful. Total GDP is a function of
policies going back hundreds of years, which were likely to have been quite
different.

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gumby
Compared with the other states I've lived in, California seems to have the
least corrupt and most reasonable regulations. Sure I can find plenty of
ridiculous stuff (the boneheaded 8-hr/day vs 40 hours/week rule) but by and
large it's a great place to do business.

Those ALEC, Heritage foundation etc clowns are welcome to stay in DC and screw
up other states. Their arguments are always data-free.

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youngButEager
Why didn't Tesla build its largest-in-the-industry battery factory here?

Why did Toyota move out?

"Business relocation expert Joe Vranich has been counting.

“I tracked for 2011, that 254 companies of all sizes and shapes and kinds left
the state for primarily other states,” said Vranich, the president of Spectrum
Location Services in Irvine.

He told KCRA 3 that companies leave California for three primary reasons:
“High taxes, excessive regulations and the threat of really ridiculous
lawsuits.”

Chevron is moving 800 jobs from their Bay Area headquarters to Texas, and
Waste Connections shifted more than 100 jobs to Texas from Folsom.

"Two dozen companies commit to leaving California -- Prop 30 triggers business
backlash"

[http://www.kcra.com/news/Two-dozen-companies-commit-to-
leavi...](http://www.kcra.com/news/Two-dozen-companies-commit-to-leaving-
California/18533954)

Detroit took 50 years to crash.

Not sure if most people are aware, but Silicon Valley led California with jobs
growth, led California out of the recession.

If the rest of Silicon Valley moves to Austin et al, California's highest-in-
the-nation personal income tax will need to go _much higher._

As a small business owner, the taxes and regs just scream "don't hire anyone!"

Arizona, Texas (no state income tax), Nevada (no state income tax) -- weather
not too bad, real close to California.

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casylum
California is growing in spite of its draconian business regulations. Perhaps
things would be even better with more friendly laws for small businesses.

~~~
vezycash
>in spite of its draconian business regulations.

California is the most populous state, contains more people than the 21 least
populous states combined. [1]

Taking China and India as a reference, I believe population is a big reason
for its growth.

1\.
[https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ...](https://en.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_population)

