The speed with which socialism can destroy a region never ceases to stun me. In the 1960s Los Angeles eclipsed New York as the place to be in America to make things happen. And now...
“The Rust Coast” seems an incorrect metaphor as California does not have great industries of steel as did the Great Lake states. Yet, what do film, silicon and aircraft aluminum decay to?
Whatever we call it, it is the dust of squandered dreams.
But California doesn’t just have a spending problem. Increasingly it also has economic and revenue problems. Even as I write this other neighboring states are running ads in local newspapers inviting California businesses to move their headquarters out of the state. That’s advertising money well spent. A poll of business executives conducted last year by Development Counsellors International, which advises companies on where to locate their facilities, tabbed California as the worst state to do business in.
There are a host of reasons why California has become toxic to business, ranging from the highest personal income tax rate in the country (small business owners are especially hard hit by PITs), to an environmental regulatory regime that has made electricity so expensive businesses simply can’t compete in California. That is one reason why even California-based businesses are expanding elsewhere, from Google, which built a server farm in Oregon, to Intel, which opened a $3 billion factory for producing microprocessors outside of Phoenix.