Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California's Gold Rush Has Been Reversed (Entrepreneurs are fleeing heavy taxes in the state)
Wall Street Journal ^ | January 10,2009 | DEVIN NUNES

Posted on 01/10/2009 8:42:51 AM PST by SeekAndFind

On Jan. 24, 1848, James Wilson Marshall found gold at Sutter's Mill, in Coloma, Calif., sparking a mad rush of some 300,000 people desiring to strike it rich. San Francisco grew from a tiny hamlet to a boomtown in no time, and in 1850 California entered the Union as the 31st state.

With this history at their back, state leaders might have understood that people have a propensity to get up and move when a better life is to be had elsewhere. But no. After more than 150 years of being a destination, California is becoming a place entrepreneurs, investment capital and the hardy workers who made it a global leader in agriculture, technological innovation and scientific research are fleeing. This exodus is the marker of something deeper than a national recession. It's a sign that the attempts by state leaders to spend their way back to prosperity are killing California.

While it has the sixth highest tax burden in the nation, according to the nonpartisan Tax Foundation, California is facing a breathtaking $40 billion budget deficit this year. This comes on the heels of a decade-long spending spree. Last year the state budget was $131 billion, up from $56 billion in 1998.

Citizens are burdened by all manner of state regulations. To mention just one example, this year a new law enacted by ballot initiative bans cages chicken farmers use on the grounds that it is inhuman to put birds in cages that prevent them from spreading their wings. Complying with the new law will cost farmers hundreds of millions of dollars, which will force many to leave the state. And that will force us to buy our eggs from other states and, possibly, others nations, such as Mexico.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events; US: California
KEYWORDS: bluestates; california; exodus; goldrush; taxes
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-83 next last
To: randog
I'll bet you hear this all the time from the Kalifornia transplants: "It's nice here, but it would be better if..."...? Or how about, "That's great, but we used to do it like..."...?

I've heard it. And they're smug about it, too. The concept of midwestern humility is completely lost on them.

41 posted on 01/10/2009 9:23:20 AM PST by Desdemona (Tolerance of grave evil is NOT a Christian virtue (I choose virtue. Values change too often).)
[ Post Reply | Private Reply | To 24 | View Replies]

To: BuffaloJack
> California is hopeless. So is New York !!!

Hey, NYC still had the good sense to vote in a Rudy Giuliani. This man single-handedly reversed the downward slide of NYC and made it livable and one of the safest big cities in the USA again.

Maybe the state might still consider him to be governor... ( hoping against hope ).
42 posted on 01/10/2009 9:24:48 AM PST by SeekAndFind
[ Post Reply | Private Reply | To 34 | View Replies]

To: SeekAndFind
I’M NOT SURE HOW THIS CAN BE REVERSED BECAUSE CALIFORNIANS CONTINUE TO VOTE IN THE SAME PEOPLE WHO CAUSED THIS PROBLEM IN THE FIRST PLACE

They move to other states and do the same thing, which is why everyone hates it when Californians move in. I hate them, too, and I'm originally from California myself!

43 posted on 01/10/2009 9:27:16 AM PST by Disambiguator
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind
For 20 years I have sold California businesses. The first 10 years the bulk of buyers (70%) were from India, middle east Nations and Asians. Today, with the Hi-Tech industry collapsing, almost complete loss of our manufacturing base we have a more balanced investor base, but that is not bragging. Even back then it was clear that some of our best business owners were getting out of California, some even left the US, most never return.

Today they are leaving in record numbers and I have always wondered if losing all this talent ever mattered to the powers to be here in California. It doesn't, the politicians here are more concerned with power, and politically correct issues then retaining and keeping the back bone of the State. More and more draconian laws are passed each year that make this group of over taxed, over regulated business owners finally throw in the towel.

There is no doubt that many people leaving California have caused other States to have problems with property values, crime etc, but many States also have the benefit of the most skilled and talented people anyone could ask for. For better or worse many more people will be leaving this once great State.

44 posted on 01/10/2009 9:29:45 AM PST by c21sac (How do we restore the good and decent of this once great Nation?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SoftwareEngineer

You made a wise decision. Esp since you live in TX.

But, it’s possible that our gov’t makeup could change. We just voted in a law that outlaws re-districting, which the Crats use to their advantage to keep being re-elected.

Let us hope that it will work as planned, and the liberal lockdown will resolve itself.


45 posted on 01/10/2009 9:33:45 AM PST by SnarlinCubBear (Get Sarcasma - Comforting relief from the use of irony, mocking and conveying contempt)
[ Post Reply | Private Reply | To 10 | View Replies]

To: tbpiper

How about California, “The new Cleveland.” LMAO (and I live in California)


46 posted on 01/10/2009 9:41:19 AM PST by DoughtyOne (I see that Kenya's favorite son has a new weekly Saturday morning radio show.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: SeekAndFind

Wyoming’s unemployment rate is a lot lower than 5%.

Per the December BLS report:

http://www.bls.gov/news.release/laus.nr0.htm

Wyoming’s unemployment is about 3.2%.


47 posted on 01/10/2009 9:43:24 AM PST by NVDave
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind
I am hoping for “cntrl alt DLT”. This is rather entertaining to watch. You need to flush before you clean the bowl.
48 posted on 01/10/2009 9:43:57 AM PST by Dawggie
[ Post Reply | Private Reply | To 1 | View Replies]

To: randog
"I'll bet you hear this all the time from the Kalifornia transplants: "It's nice here, but it would be better if..."...? Or how about, "That's great, but we used to do it like..."...?"

The Californians do that with our Tex-Mex food. They always say: "It isn't real Mexican food." No kidding! It's TEX-mex!

49 posted on 01/10/2009 9:53:16 AM PST by avacado
[ Post Reply | Private Reply | To 24 | View Replies]

To: NVDave
Idaho's unemployment rate was 2.7% in Dec 2007. It jumped to 6.6% by Dec 2008.
50 posted on 01/10/2009 10:25:52 AM PST by Myrddin
[ Post Reply | Private Reply | To 47 | View Replies]

To: SeekAndFind

Now watch what happens in border States.

They are locusts. The same ones who voted for socialism in California are now fleeing.

The locusts destroy one State, then move onto the next and do the same.


51 posted on 01/10/2009 10:27:12 AM PST by Para-Ord.45
[ Post Reply | Private Reply | To 4 | View Replies]

To: Myrddin

That’s because Idaho has been a second-level player in the real estate boom. When I’ve driven through Twin, Boise/Nampa and clear out to Caldwell, I’m blown away by how much residential development was underway. In 2007, I could not believe how much housing you folks had under development in Idaho, and I also could not see how people could afford those homes given the median incomes in the area, especially places like Caldwell and Twin.

Now that the housing market is imploding, the unemployment in the building trades has to be hitting Idaho pretty hard.

In Wyoming, there wasn’t much of a building boom. The state remembers the boom of the last oil spike that ended about 1983 - which created ghost towns in the implosion. So counties and towns were much more circumspect in allowing building to get out of control, because they had seen energy booms before and remembered that they usually come to a sudden end - just as we’re seeing now.

We’ll see the unemployment in WY go up as oil/gas development companies pull back on drilling projects here. The small projects are already being shut in and one energy company (Rock Well, out of Canada) has filed for bankruptcy.


52 posted on 01/10/2009 10:32:07 AM PST by NVDave
[ Post Reply | Private Reply | To 50 | View Replies]

To: SeekAndFind

Devin Nunes has some very good proposals, but I am not optimistic that any of them would ever see the light of day in California. Good government is not what California’s legislature is all about. What it’s all about is confiscating money from society’s producers and handing it over to society’s parasites (the Democrat “base”) in exchange for votes.

The one and only weapon that matters is the ability to prevent tax hikes.
Just concentrate on maintaining that.
Starve the beast and let the rest work itself out.


53 posted on 01/10/2009 10:39:35 AM PST by Lancey Howard
[ Post Reply | Private Reply | To 1 | View Replies]

To: avacado
It's TEX-mex!

Best mexican food I had was in New Mexico. I was there for 3 days, and I had enchiladas for breakfast, lunch, and dinner. I'll bet it's better in Texas...?

;^)

54 posted on 01/10/2009 11:20:13 AM PST by randog (Tap into America!)
[ Post Reply | Private Reply | To 49 | View Replies]

To: SeekAndFind

This exodus has been going on for some time now. I find myself thinking if I were to move anywhere else where the weather is so good most of the time, and I don’t have to sweat the bugs and winters of the midwest and east coast or the heat of the desert ( all places I have lived) where would I go. My spouse is a native Californian with his whole family here so here is where we are parked and in a nice neighborhood and a very nice city..ok village...but where we are. I don’t like what is going on in CA and moreover what goes on here tends to move East...everything from fashions to bad morals and taxes. What is the old saying...as California goes so goes the nation...


55 posted on 01/10/2009 11:28:27 AM PST by celtic gal
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Not all Californians vote for the same idiots in the state or national elections. The problem with CA is the large pockets of liberals in places like LA, SF etc..those of us in the smaller locations or in the western part of the state are more conservative..we suffer with this and hate it too and many would move if they could.


56 posted on 01/10/2009 11:30:14 AM PST by celtic gal
[ Post Reply | Private Reply | To 4 | View Replies]

To: AuntB

That and all the perks for illegal or should I say undocumented foreigners....we are sinking under that.


57 posted on 01/10/2009 11:32:27 AM PST by celtic gal
[ Post Reply | Private Reply | To 12 | View Replies]

To: adorno

I am not so sure the ones leaving CA are the ones who voted for all the mayhem that goes on here now...I would think,that people like me who vote against this crap, would be the ones leaving in droves. I would if we could.


58 posted on 01/10/2009 11:35:58 AM PST by celtic gal
[ Post Reply | Private Reply | To 28 | View Replies]

To: Tarpon
What can you do but shake your head and leave.

Hey, the liberals got their cheap gardeners and nannies - and the illusion that they're "oh so cool".

The fact that the place is unlivable never bothers liberals. You're right - pack up and leave.

59 posted on 01/10/2009 11:38:07 AM PST by GOPJ ("A consensus of 100 scientists is undone by one fact." - - Einstein (take that Al Gore))
[ Post Reply | Private Reply | To 3 | View Replies]

To: DoughtyOne
How about California, “The new Cleveland.”

Ouch! That's bad. True, but very bad.

Amazing << Hear this. Feel this, and tell me that this isn't music.


60 posted on 01/10/2009 1:10:04 PM PST by rdb3 (Oh, my. Uhh... No, it's... What's.., What's the word?)
[ Post Reply | Private Reply | To 46 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-8081-83 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson