Unless otherwise noted, the following data have been culled by Chapman University Professor Joel Kotkin, and published in the Wall Street Journal, the Orange County Register and elsewhere. (For the record, Kotkin is a self-described "Truman Democrat" who voted for the Democrat governor Jerry Brown of California.)Read the whole article to see what the author says is the reason why things in California don't change.
--In the last 20 years, about 4 million more people have left California than came in from other states. Most of those leaving are young families.
--In the last 15 years, one-third of California's industrial employment base has disappeared. That's 600,000 jobs that have disappeared.
--California has the 48th-worst business tax climate. (The Tax Foundation)
--California's electricity prices are 50 percent higher than the national average.
--Middle-class workers, those who earn more than $48,000, pay a top income tax rate of 9.3 percent. That's higher than what millionaires pay in 47 other states.
--California's unemployment rate is fourth highest in the nation.
--From 2010-13, California produced fewer than 8,000 jobs, while the country added 510,000.
California faces enormous underfunded public employee pension obligations. (Bloomberg)
--An estimated 25 billion barrels of oil are sitting untapped in the Monterey and Bakersfield shale deposits. California is therefore sending billions of dollars to Texas, Canada and elsewhere to buy natural gas and oil that it could have produced itself.
--Twitter, Adobe, eBay and Oracle, among other major California tech companies, have moved many operations to Salt Lake City.
--Hollywood is doing more and more of its filming in Louisiana, Canada and elsewhere to avoid California taxes.
--Toyota just announced that it is moving its U.S. headquarters from Los Angeles to Dallas. This will eliminate 3,000 or more generally high-wage jobs.
--Occidental Petroleum recently announced that it is moving its headquarters from Los Angeles to Houston.
--Until relatively recently, half of the country's top 10 energy firms -- ARCO, Getty Oil, Union Oil, Occidental and Chevron -- were based in California. Today, only Chevron remains, and it is gradually relocating in Houston. (Reuters)
--Houston has added nine million square feet of new office space. Los Angeles has added one million.
--Tesla will likely locate its proposed $5 billion battery factory, which would employ upward of 6,500 people, in Nevada, Arizona, New Mexico or Texas. According to greentechmedia.com, California "didn't make the short list because of the potential for regulatory and environmental delays."
--California's Monterey Shale offers a potential employment bonanza for workers needing access to entry-level jobs in the high-paying energy sector. But California's green lobby is striving to deny them that opportunity. (John Husing, chief economist of the Inland Empire Economic Partnership, Los Angeles Daily News)
Wednesday, May 14, 2014
How Bad Is It In California?