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California, a bad bet for business: Why would new enterprises come to a state like this?
Los Angeles Times ^ | 03/13/2012 | By Bradley R. Schiller

Posted on 03/15/2012 6:18:06 AM PDT by SeekAndFind

In its most recent annual ranking of "business friendly" states, Forbes magazine had some blunt advice for investors: "Utah and Colorado have maintained strong business climates. Forget about California."

Californians like to dismiss such assessments of the Golden State and instead point to its natural beauty and quality of life. They tend not to worry what people in other states think. But they should. California is no longer the economic miracle it once was. Silicon Valley no longer has a monopoly on high-tech talent and innovation. Hollywood has to compete for movie locations with Utah and Morocco. Real estate investors see better development prospects in states with fewer foreclosed and abandoned homes. And SoCal porn producers know they don't need huge wardrobe containers to move to Nevada.

Californians tend to be complacent about these competitive risks. On the surface, things don't look too bad. Sure, the state's finances are in shambles and the Legislature in disarray. But median personal income ($42,578) is well above the national average ($39,945).

These things can't compensate for some disturbing recent trends. The growth of the state's $2-trillion economy has slowed dramatically. Since 2000, the state's economy has grown significantly more slowly than the rest of the nation. Last year, California ranked 34th in real GDP growth. That sluggish growth has burdened it with among the highest unemployment rates (10.9%) in the nation. If businesses heed Forbes' advice to avoid the state, the situation will only worsen.

So what is it that makes California unfriendly to business? For starters, it's very expensive to do business in the state. Corporate taxes are high, as are energy and labor costs, according toMoody'sAnalytics and the Tax Foundation. In the Forbes rankings, the state also comes in at No. 40 in the category of regulatory environment.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: California
KEYWORDS: california; enterprises

1 posted on 03/15/2012 6:18:10 AM PDT by SeekAndFind
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To: SeekAndFind

I visualize Californians swirling the toilet bowl while their leaders continually reach out for the flush handle.


2 posted on 03/15/2012 6:28:10 AM PDT by umgud (No Rats, No Rino's)
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To: umgud

We spent a week in San Diego earlier this month. Loved the place but holy cow, the price of everything was nuts !


3 posted on 03/15/2012 6:30:22 AM PDT by Eric in the Ozarks (Beware the Sweater Vest)
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To: SeekAndFind

California voters are really to blame. An example? We voted against a moratorium of the Clean Air Act which is mandating unrealistic restrictions on every business in the state. The CARB commission can be likened to the SS in Nazi Germany.


4 posted on 03/15/2012 6:31:40 AM PDT by Huskrrrr
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To: umgud

“I visualize Californians swirling the toilet bowl while their leaders continually reach out for the flush handle.”

yea, I get that. It is pure insanity.


5 posted on 03/15/2012 6:36:22 AM PDT by television is just wrong
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To: SeekAndFind
Californians, to the extent they are thinking vs feeling, are betting that Obama will bail them out and send them money from the rest of the country - or his stash. That's a bet they might win if Obama gets a second term.
6 posted on 03/15/2012 6:38:47 AM PDT by Truth29
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To: SeekAndFind

How the hell did this sneak into the Lost Angeles Crimes?


7 posted on 03/15/2012 6:39:39 AM PDT by Lazamataz ("We beat the Soviet Union, then we became them." -- Lazamataz, 2005)
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To: SeekAndFind

And the amazing thing is... the majority of Calis think it’s all wonderful out there, so long as they get theirs. Look who they elect... over and over and over....


8 posted on 03/15/2012 6:41:28 AM PDT by ScottinVA (A single drop of American blood for muslims is one drop too many!)
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To: SeekAndFind

I’m surprised this was in the LA Times — but the comment at the LAT where the commenter makes fun of people moving to Mississippi is the supreme lib who is both in the bowl and reaching for the handle.


9 posted on 03/15/2012 6:41:28 AM PDT by Moonmad27 ("I'm not bad, I'm just drawn that way." Jessica Rabbit)
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To: Lazamataz

RE: How the hell did this sneak into the Lost Angeles Crimes?

Sometimes, they want to appear to be “Fair and Balanced” too.


10 posted on 03/15/2012 6:53:32 AM PDT by SeekAndFind (question)
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To: SeekAndFind
Sometimes, [the LAT wants] to appear to be “Fair and Balanced” too.

Well, kinda a little late for that.

They are in-the-tank for communism and liberalism.

They are in-the-tank for Democrats.

But I repeat myself.

11 posted on 03/15/2012 6:56:24 AM PDT by Lazamataz ("We beat the Soviet Union, then we became them." -- Lazamataz, 2005)
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To: SeekAndFind

Last September my wife and I were in Burbank for a convention. We had a certificate for a “free” one day car rental. The rental was free, but the taxes and fees came to $48.00.


12 posted on 03/15/2012 7:55:11 AM PDT by anoldafvet
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To: SeekAndFind

The whack nut politicians in Sacramento don’t care about good jobs and business. Jeez! All the left wing politcal fringe groups have them by the balls!


13 posted on 03/15/2012 8:07:38 AM PDT by AngelesCrestHighway
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To: anoldafvet

RE: The rental was free, but the taxes and fees came to $48.00.

Did you ask what the rental would have been without your “free” certificate?


14 posted on 03/15/2012 8:43:15 AM PDT by SeekAndFind (question)
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To: SeekAndFind
If New York is any guide, California won't change its ways. The majority of the population lives in the big cities where economic decline is disguised. People quietly pick up and leave but it isn't that noticeable because new strip malls are constantly being built and the emptying inner cities provide a market for ever-growing suburbs.

It's in the rural areas that the devastation can be seen. But there aren't enough people living there to effect any change.

15 posted on 03/15/2012 9:22:44 AM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: SeekAndFind

You aint seen nothing yet. Wait until that soul-less witch Mary Nichols of CARB double’s California energy costs now that Arnold pushed for and won the California Cap and Trade law. Energy costs are going to skyrocket and could be the final nail in the coffin for California business. Dare I say California Cap and Trade SHOULD BE the final nail.

CARB is oppressive and Mary Nichols is a tyrant.


16 posted on 03/15/2012 10:29:22 AM PDT by Freedom_Is_Not_Free (REPEAL OBAMACARE. Nothing else matters.)
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To: Lazamataz

Maybe the LA Slimes editors finally figured out the parasites are on the edge of killing the host. A good parasite knows better. I know I’m giving the Slimes too much credit here.


17 posted on 03/15/2012 10:32:11 AM PDT by Freedom_Is_Not_Free (REPEAL OBAMACARE. Nothing else matters.)
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To: SeekAndFind

A good time to think about business flight is BEFORE businesses flee.

And I don’t even have a Masters in Government Administration from the Kennedy School.


18 posted on 03/15/2012 10:38:40 AM PDT by St_Thomas_Aquinas (Viva Christo Rey!)
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To: SeekAndFind

It would have been $39.95 higher. The $48.00 was taxes and fees.


19 posted on 03/15/2012 12:18:03 PM PDT by anoldafvet
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