No Change – CA Worst Place to Do Business

Russ Steele

More than 500 CEOs considered a wide range of criteria, from taxation and regulation to workforce quality and living environment, in our annual ranking of the best states for business. The charts and articles in this special report show how each state fares on the factors most essential for a business-friendly environment—as well as what states are doing to attract and retain companies in the increasingly competitive battle to win site selection.

Rest of the Chief Executive Article is HERE. Some pull quotes:

  • California, once a business friendly state, continues to conduct a war on its own economy. According to the Pacific Research Institute, it has the fourthlargest government of all U.S. states, with spending equal to 18.3 percent of GDP. The comparable figure for Texas is 12.1 percent. Survey respondents uniformly say the state’s regulators are hostile. “No one in his right mind would start a new manufacturing concern here,” said one California CEO.
  • Then there is the state’s carbon emission law (AB 32), which the Small Business Roundtable and PRI say will cost half a million in foregone jobs in 2011 and up to 1.3 million jobs by 2020. What’s more, it is by no means certain the law will reduce carbon emissions since it only applies to California.
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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.

2 Responses to No Change – CA Worst Place to Do Business

  1. sean2829 says:

    California is run like an urban center where policies are made that drive out businesses that can leave with high tax and regulation but also generous benefits that foster dependency on the city government. In a city that leaves a wealth donut where the blighted center is surronded by prosperous suburbs. Those suburbs provide jobs for the city dweller and the state often transfers additional state tax funds to contribute to the city’s needs. Unfortunately, most people can’t commute into and out of the state and the Federal government at the next higher level will likely find it difficult to bail out a state as big as California while still treating all other states equally. It will likely take something as cathartic as state bankrupcy to clean house sufficiently to change the state government culture.

    • Dena says:

      I suspect a bankrupcy would clean the books but until you change the mind of the voter, you will end up back in the same mess. With the middle and upper class leaving the state, you will only be left with the lower class who like the goodies and the tax rate they currently don’t pay. We knew the mess existed in the last election but the state voted for moon beam. I don’t think a little thing like a bankrupcy is going to get in the way of the leftish government.
      It is possible that the state may be the first one to be taken over by the court as the current office holders are unable to make the decisions required to get the state back on track. It is common for business in bankrupcy to be controlled by the court but this will be a first for the states.

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