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California continues to suffer job growth!
The Fortune Small Business magazine just published its 50 best places to launch or grow your business. The cities were broken into 3 categories... small medium and large. Not 1 Calif. city made the list in any category! The criteria was based on ....per capita income, hourly wage, workforce quality, crime rates, taxes and foreclosures. So how well has Sacramento done for us....ouch!
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I think you meant Job Loss for the title, rather than job growth. Also, I remember when Arnold was on Jay Leno many years ago during his first campaign promising that he would clean out Sacramento and make California "business friendly" again.
OK, ok I know you people hate anecdotal stories which really don't prove anything in term of stats. but here goes:
We have a relative who has been out of a job for almost 2 years. He worked for a large furniture company that went bankrupt so it was not his fault. But as far as we can tell he, his wife and four kids are pretty comfy living with his parents and (I assume) collecting whatever government assistance is available to them (un-employment ran out for him a while ago). He does not seem motivated at all to get even a temp. job while he looks for something else. They live in L.A. where there are plenty of jobs in retail, service, etc. right near him. But I think the reason he is dragging his feet is because he can make more on welfare, medi-cal, food stamps, etc. all while living rent-free with the relatives (who feel sorry for him).
But what is bothering me the most about this scenario is how it is very convenient to just say, "Oh it is the bad economy..." and then collect welfare and charity all the while not feeling any sense of urgency to get a job. I see signs and ads all over for pest control companies, truck drivers, etc. etc., things this man could easily do...but where is the MOTIVATION when the gov. will pick up the tab and then some? And these are not the kind of people you would typically peg as doing this kind of thing. I just don't get it. It is these kind of attitude that is going to drain the blood of our country dry.
Company's in Calif. are packing up and leaving, Nevada is where many of them are going. It's a very business friendly place. California has turned into the tax me state. TAX, TAX, TAX.
California is not a business friendly state but that "all our jobs going to Nevada" dog won't hunt when you look at the numbers. There are almost as many unemployed in California as there are people in Nevada and Nevada has a higher unemployment rate than California does. I heard the same about Oregon and the numbers don't add up there either. There is some job loss to other states but its a little here and a little there most of is due to a high labor cost. Its just something The Nevada story California Republicans like to throw around when they think no one will check their numbers.
California's problems losing jobs is a complex set of issues that start with a high cost of living, essentially falling victim to its own previous success. When the economy was hot real estate shot up, much of the economy shifted to development. The real estate market sank like a rock once everyone figured out it was based on bad paper. My guess is that California's biggest non development job loss is based on two things productivity because of technical advances and manufacturing loss to other countries just like the rest of the country. California is just first down the job loss road because of its higher cost of labor. California may be able to stanch the bleeding but most of the jobs lost in existing sectors are probably not coming back. If we want out of the mess it will probably be innovation that does it.
"California has turned into the tax me state. TAX, TAX, TAX." Yes Glenn their is no Santa, our heavily one-sided legislature took all his cash and took loans out once the cash was gone. When you spend more then you take in and you do this on the backs of business and working people, you end up with very few businesses and a lot of unemployment. "Nevada has a higher unemployment rate than California" was caused by all the Indian Gaming we now have in California. Actual tax paying business ventures are in better shape in Nevada then they are in California and they sure aren't in any hurry to move west.
Let them leave California if the want. The unique culture and various amenities like an OCEAN and a more temperate climate makes CA the place to be. The only thing I would say to those leaving is to take someone with you.
fourgen
I really don't know or care about business health in Nevada. I just know that a drain of jobs from Nevada is in no way a significant factor in California job loss problem. The state is just too small and politicians waving that flag are either disingenuous or not too bright . Nevada has always pretty much been a one trick pony with gambling money from California paying the bills so that they can keep taxes lower. If California legalized gambling and prostitution at the level Nevada does Nevada would be in big, big trouble. California's problem is that is allowing a lack of economic diversity turn it into a boom or bust economy, Its a problem that the whole country is headed for California's irresponsible legislature and high cost of living is forcing it into the position of being a miners canary for the country.
ChuxxR
That old tune only plays so far. California's tax and spend legislature is killing the goose that laid the golden egg. While they are making things tough for business South Eastern states are giving away free land, tax incentives and state grants and helping those business find federal grants. New Mexico gives an employee education allowance and tax breaks. Michigan gives huge incentives. Maybe after the California economy completely tanks dropping housing costs and wages to the level of the rest of the country things like weather and culture will again be strong incentives.
Chuxx: Good one.