Monday, April 25, 2011

California Politicians Live In Fantasy Land

In the laugh of the day, California (mostly Republican members) of the state legislature and Socialist Lt. Governor Gavin Newsom journeyed to Texas to find out why Texas is gaining jobs and businesses are moving there and California is losing both.  Ironically, Newsom was the former Socialist Mayor of San Francisco and is a notorious job killer.   In any case, they could have saved the state these travel monies and just called this Blogger and business owner who has been involved in Corporate Mobility for the last 32 years. I could have given them the answers in 5 minutes because I have been involved in moving jobs out of California for clients for years.  

California is run by Socialists, public employee unions that are bankrupting the state and environmental wackos that have made manufacturing in California impossible.  And, California is the litigation capital of the world.   Employment laws and other regulations in California are just plain crazy.   Over time is paid after 8 hours a day not after 40 hours a week, which pushes work and jobs that would have been done by non-exempt hourly employees out of California.  California also has among the highest taxes in the country, including an attempt to tax world wide income through various formulas that are imposed on California headquartered companies.  In fact, many companies leave California if nothing else than to avoid this tax regime.  All of these factors when combined with the high cost of housing, also driven by regulations on the building industry, has been the kiss of death for California.  

So while Texas gained 165,000 jobs in the last three years, California lost 1.2 million jobs.   California currently has 12% official unemployment, while Texas has 8% unemployment.   Another company Fujitsu Frontech recently called it quits in California and moved out of state.   Actually, so far, 70 companies have left California this year.   That amounts to 4.7 companies leaving per week, which is up from 3.9 companies that left last year.   Of the 70, 14 have moved to Texas.   36,000 entertainment jobs have left California since 1997 as even movies are no longer being made in California.   This business mobility trend has actually been happening for 30 years as the number of companies with 5,000 employees or more resident in California has shrunk from about 250 thirty years ago to about 120 today.   And, of those companies still headquartered in California, most have moved operations to other states and or out of the US entirely.   In the same time period, Texas has gone from about 80 companies with 5,000 employees or more to 220.   Cards talk and numbers don't lie.

Socialist politicians, including the current old/new Governor of California Governor Moon Beam Jerry Brown and President Obama just don't get any of this.  It is just Economics 101.  Obama is doing to the United States what Socialist politicians have done to California for years.   High taxes and more regulations push businesses to leave killing jobs.  Now many companies are moving operations overseas and leaving the United States entirely.   In fact, of the largest 2,000 companies in the world, 5 years ago, about 700 were based in the US.  Today, that number in 568.   This has happened because of mergers and acquisitions resulting from the cheap dollar and the US corporate income tax rate, which is the second highest in the world.   In some cases, overseas companies are buying American companies on the cheap because the dollar has been so degraded by Obama and the Federal Reserve.  Once done, headquarters are moved outside the United States.  This should be no surprise to anyone; yet Socialist politicians just don't have a clue. 

In order to preserve our freedom, our nation and way of life and to maintain jobs in the US, we must sweep these Socialists, including the President out of office in 2012 and 2014.  These characters are destroying our economy.  Obama is doing to the United States what Socialists have done to California.   WE THE PEOPLE must act to prevent the bankruptcy of the United States.   We must finish the job we started in 2010.   We must take back our country in 2012 and 2014.  We can do it.   We must do it for the sake of our children and grandchildren. 

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