CA Legislature is Back in Session – Businesses Continue to Leave the State

Russ Steele

It it back to business as usual for the Legislature in Sacramento, passing useless laws constraining our personal freedom while ignoring the real issue of jobs for the citizens of this state.  The Assembly will be meeting at noon, and the Senate at 2 p.m. and the foolishness starts all over again.

The Investors Business Daily has this article in yesterday’s edition: The Great Golden State Business Exodus

States: California’s in trouble. Businesses are leaving along with intellectual and investment capital and skilled workers. But rather than face up to serious problems, legislators pass silly laws.

One would think that given the serious nature of the state’s problems, the legislature would focus on solutions at the exclusion of all else.

Instead, lawmakers — what would we ever do without them? — found the time in 2011 to trespass even deeper into Californians’ personal lives.


While the California legislature spent 2011 fiddling with nonsense legislation, the state’s business environment continued to burn. Joe Vranich, a business consultant who monitors the Golden State’s exodus, said in November that “large corporations, family-run companies and even startup enterprises in all industries continue to leave” due to high business taxes and excessive regulation “imposed on commercial enterprises of all types.”

Vranich calls California the worst state in the nation to locate a business, Los Angeles the worst city. He estimates a business can save 40% in costs just by leaving.

And it’s not just struggling businesses that quit. As the Orange County Register recently noted, even profitable ones are departing. Why? Though they make money in California, they know they can make more elsewhere.

Is Sacramento listening? Unfortunately, the legislature is concerning itself with lesser things.

The Central Valley Business Times has some insight in to the problems being ignored by our Legislators.

There is little joy to be found in the latest San Joaquin Valley economic report from Ernie Goss, research associate with the Craig School of Business at California State University, Fresno.

Since June, the San Joaquin Valley “Business Conditions Index” has trended downward, with December’s gauge moving below growth neutral and for the fifth time in the past six months, firms surveyed for the index reported net job losses, says the report, released Tuesday.

An average 1.6 percent pay increase during the year is anticipated by those surveyed in Fresno, Madera, Kings and Tulare counties for the Craig School of Business at Fresno State.

The index, a leading economic indicator from a survey of individuals making company purchasing decisions for firms in the four counties, continues to point to slow to no growth in the coming months. The index is produced using the same methodology as that of the national Institute for Supply Management.

The overall index fell to 48.4 from 51.7 in November and 48.1 in October. An index greater than 50 indicates an expansionary economy over the course of the next three to six months.

“Based on our surveys over the past several months, I expect economic growth to weaken and potentially turn negative in the next three to six months,” says Mr. Goss.

You can read the rest HERE. The question is, when will the Legislature get off stupid and get back to work solving California’s real problems and not spend any more time social engineering our private lives.  Not real soon is my guess, our liberal/progressive  legislators are beyond stupid!  They think that we are incapable of living free with out their supervision.


About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

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