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How California became a case study in failed governance

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  • Popular Post
18 hours ago, spidermike007 said:

When you have politicians without creativity who face budget shortfalls, their go-to reflex is to raise taxes and as a result thousands of companies have left the state seeking greener pasture.

California has a governance problem. However, the issue of companies leaving is not specific to that problem. Although some noticeable companies have left the state, the taxes they paid hardly put a dent in the $4trillion+ California economy. In any given year companies open and close all over the USA. Tens of thousands of companies with a long list of reasons open and close. Companies have also moved to the state to access one of the best educated and skilled workforces in the USA.The loss of a corporate headquarters does not mean that there is an absolute loss of jobs or tax revenues because the company will keep offices and branches in the state.

The reality is that thousands of companies have NOT left the state. The data offers a very different picture. The Public Policy Institute of California concluded that; Relocations are a small fraction of overall headquarter activity. Between 2011 and 2021, far more headquarters launched (7,250, 17% of companies headquartered in California) and closed (12,700, 30%) than moved out of state, with no clear upward or downward trends. Focusing solely on relocations overlooks the range of positive and negative forces driving headquarter activity and can misrepresent businesses’ desire and ability to operate headquarters in California and the broader impact on jobs.

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  • impulse
    impulse

    Did'ja notice how WAPO waited until after the election? That would have been handy info for the voters to have before they bumped Pratt in the primary. (If they actually did... I think it's all the

  • Hanaguma
    Hanaguma

    You glossed over that, while economic activity is ranked #2, economic health is ranked #49. As you said, economic health includes unemployment and fiscal health. Rather important factors.

  • Hanaguma
    Hanaguma

    Perhaps. But getting Hilton into the final as a gubernatorial candidate is more important than Pratt IMHO. THe governor has more power and more impact on the state. Although even if he wins, Hilton wi

Posted Images

12 minutes ago, TedG said:

Let’s talk about how progressives ruin everything they touch.

ID's to register to vote. The state sues "a county" as the federal Govt investigates the State thats fighting to be audited..

California sues Shasta County over newly passed voter ID ballot measure

https://courthousenews.com/california-sues-shasta-county-over-newly-passed-voter-id-ballot-measure/

https://www.kcra.com/article/us-doj-continues-elections-investigation-fight-to-audit-californias-voter-rolls-ca-politics-360/71573105

Edited by riclag

  • Author
13 minutes ago, riclag said:

ID's to register to vote. The state sues "a county" as the federal Govt investigates the State thats fighting to be audited..

California sues Shasta County over newly passed voter ID ballot measure

https://courthousenews.com/california-sues-shasta-county-over-newly-passed-voter-id-ballot-measure/

https://www.kcra.com/article/us-doj-continues-elections-investigation-fight-to-audit-californias-voter-rolls-ca-politics-360/71573105

Shasta County, a mixture of hippies and loggers.

  • Author
8 hours ago, Hanaguma said:

Although even if he wins, Hilton will have to contend with a very Democratic legislature who may not be inclined to help him in implementing his ideas.

This is true. He will be fighting an uphill battle for change.

2 hours ago, Patong2021 said:

California has a governance problem. However, the issue of companies leaving is not specific to that problem. Although some noticeable companies have left the state, the taxes they paid hardly put a dent in the $4trillion+ California economy. In any given year companies open and close all over the USA. Tens of thousands of companies with a long list of reasons open and close. Companies have also moved to the state to access one of the best educated and skilled workforces in the USA.The loss of a corporate headquarters does not mean that there is an absolute loss of jobs or tax revenues because the company will keep offices and branches in the state.

The reality is that thousands of companies have NOT left the state. The data offers a very different picture. The Public Policy Institute of California concluded that; Relocations are a small fraction of overall headquarter activity. Between 2011 and 2021, far more headquarters launched (7,250, 17% of companies headquartered in California) and closed (12,700, 30%) than moved out of state, with no clear upward or downward trends. Focusing solely on relocations overlooks the range of positive and negative forces driving headquarter activity and can misrepresent businesses’ desire and ability to operate headquarters in California and the broader impact on jobs.

I agree that a few headquarters moving doesn't prove California's economy is failing. California is too large and diverse for that.

But saying "most companies stayed" doesn't prove governance is working either.

The real question is whether state policies are making it easier or harder to do business and create jobs.

We've seen refinery closures, manufacturing losses, store closures, companies shifting expansion to other states and businesses citing regulations, permitting delays, energy costs labor costs and taxes as reasons. Those are real jobs that disappear not just mailing addresses moving.

A company doesn't have to leave California entirely for California to lose. If a business decides its next factory, refinery, warehouse or office goes to Texas, Nevada or Tennessee instead of California that's investment and future jobs that California never gets.

The issue isn't whether California still has a huge economy. It does. The issue is whether state policies are helping or hurting future growth and affordability.

Not sure how progressives ruin states unless people mean "make them poor" . California holds the highest overall Gross Domestic Product (GDP) in the USA at nearly $3.6 trillion.

The poorest U.S. states are primarily concentrated in the South and Southwest, that is, the Republican states.

Mississippi, a Republican state, is the poorest. Californians pays for poor republican states like this through taxes.

Duplicate

Edited by Purdey

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  • Popular Post
56 minutes ago, Purdey said:

Not sure how progressives ruin states unless people mean "make them poor" . California holds the highest overall Gross Domestic Product (GDP) in the USA at nearly $3.6 trillion.

The poorest U.S. states are primarily concentrated in the South and Southwest, that is, the Republican states.

Mississippi, a Republican state, is the poorest. Californians pays for poor republican states like this through taxes.

California has the highest poverty rate.

https://calmatters.org/commentary/2025/09/california-living-costs-highest-poverty/

Number 49 in literacy rate.

https://californiapolicycenter.org/the-reading-crisis-why-illiteracy-threatens-californias-future-and-what-we-can-do-now/

  • Author
59 minutes ago, Purdey said:

Not sure how progressives ruin states unless people mean "make them poor" . California holds the highest overall Gross Domestic Product (GDP) in the USA at nearly $3.6 trillion.

The poorest U.S. states are primarily concentrated in the South and Southwest, that is, the Republican states.

Mississippi, a Republican state, is the poorest. Californians pays for poor republican states like this through taxes.

California gets 33.9 percent of their state budget from the federal government.

https://factually.co/fact-checks/finance/california-federal-transfers-share-2024-25-4dd562

You glossed over that, while economic activity is ranked #2, economic health is ranked #49. As you said, economic health includes unemployment and fiscal health. Rather important factors.

How do you have the #2 economy and still run a $$ multi billion dollar budget deficit?

Incompetent governance. That's how. That's Dems for you.

12 hours ago, ericthai said:

I agree that a few headquarters moving doesn't prove California's economy is failing. California is too large and diverse for that.

But saying "most companies stayed" doesn't prove governance is working either.

The real question is whether state policies are making it easier or harder to do business and create jobs.

We've seen refinery closures, manufacturing losses, store closures, companies shifting expansion to other states and businesses citing regulations, permitting delays, energy costs labor costs and taxes as reasons. Those are real jobs that disappear not just mailing addresses moving.

A company doesn't have to leave California entirely for California to lose. If a business decides its next factory, refinery, warehouse or office goes to Texas, Nevada or Tennessee instead of California that's investment and future jobs that California never gets.

The issue isn't whether California still has a huge economy. It does. The issue is whether state policies are helping or hurting future growth and affordability.

Yet, private employment has been continuously increasing.

https://fred.stlouisfed.org/series/SMS06000000500000001?utm_source=copilot.com

Screenshot_20260619_065017_Samsung Browser.jpg

Pro

12 hours ago, TedG said:

California gets 33.9 percent of their state budget from the federal government.

https://factually.co/fact-checks/finance/california-federal-transfers-share-2024-25-4dd562

So slightly less than average?thumbsup

Google AI:

image.png

"Fareed Zakaria called it failed governance."

Well, look at you quoting Fareed Zakaria like a complete lefy pro!

If Zakaria wasn't a lefty, he would have published that piece before the primary. It's gotten so bad that even he knows the lefties can't deny it. All they can do is mitigate the damage to the Dems by timing their garbage dumps. He's hoping it all blows over before the next vote, short attention spans and all.

16 hours ago, TedG said:

Let’s talk about how progressives ruin everything they touch.

Let's talk about mollusk abuse.

4 hours ago, impulse said:

How do you have the #2 economy and still run a $$ multi billion dollar budget deficit?

Incompetent governance. That's how. That's Dems for you.

How do you have the #1 economy and still run a $$ multi TRILLION dollar budget deficit?

Incompetent governance. That's how. That's Republicans for you.

Thanks for teeing it up for me!😂

16 hours ago, Hanaguma said:

PM Carney has done better than I expected at the time of the election. He has returned to his roots , so to speak, and left behind the worst of the Euro-elite snobbery and arrogance. I wouldn't have voted for him, but whatever happens, he IS my Prime Minister and I wish him success.

I only with my cousins to the south could have the same attitude. We all lose elections and need to accept the results with a modicum of grace and dignity.

As for joining the EU? Jesus, no. Last thing we need to do is be tied to Europe. Asia is the future.

Seems Mark disagrees with you.

Edited by BLMFem

The Governor would like a word.

37 minutes ago, BLMFem said:

Seems Mark disagrees with you.

Well, perhaps I spoke to soon about the PM losing his acquired Euro-isms...

Disappointing to hear, hopefully he is just feeding the audience what they want to hear. The sad fact is that Europe is in decline, and hitching Canada to it would be a huge mistake.

Come home, Mark!!

  • Popular Post
9 minutes ago, BLMFem said:

The Governor would like a word.

In other words, job creation in Cali lagged behind Florida, Texas, and Georgia in percentage terms. Raw numbers are irrelevant- Cali SHOULD create more jobs, it is the most populous state. He also fails to mention that the unemployment rate in Cali is high above the national average.

Not to mention that nearly half the jobs created are either low wage service sector, or government jobs. Not much in terms of industry or factory work.

But, Cali IS number 1 in many areas- homelessness, addiction, poverty, gas prices, state deficit, retail theft, outflow of business..... good work Governor!

Edited by Hanaguma
missing info

3 minutes ago, Hanaguma said:

In other words, job creation in Cali lagged behind Florida, Texas, and Georgia in percentage terms. Raw numbers are irrelevant- Cali SHOULD create more jobs, it is the most populous state. He also fails to mention that the unemployment rate in Cali is high above the national average.

Not to mention that nearly half the jobs created are either low wage service sector, or government jobs. Not much in terms of industry or factory work.

"In other words, job creation in Cali lagged behind Florida, Texas, and Georgia in percentage terms."

So Governor Newsom has it wrong?

Grok AI:

image.png

  • Author
4 hours ago, Hanaguma said:

Disappointing to hear, hopefully he is just feeding the audience what they want to hear. The sad fact is that Europe is in decline, and hitching Canada to it would be a huge mistake.

Yes, Europe is declining and a tweet from someone does not disprove it.

"So, what happened to the nation's most richly naturally endowed—and once best governed—state"? "The Left took control".

Prompt up legal/illegal immigrants through social programs and entitlements while the middle class moved out in droves, fed up with the Tax burden & everything else that feeds the bureaucracy.

Good read from the Town Hall opinion .

https://townhall.com/columnists/victordavishanson/2026/06/18/is-california-reaching-critical-mass-n2677954

Edited by riclag

20 hours ago, Purdey said:

Not sure how progressives ruin states unless people mean "make them poor" . California holds the highest overall Gross Domestic Product (GDP) in the USA at nearly $3.6 trillion.

The poorest U.S. states are primarily concentrated in the South and Southwest, that is, the Republican states.

Mississippi, a Republican state, is the poorest. Californians pays for poor republican states like this through taxes.

California has a huge economy, but that's not proof of good governance. A state can be rich and still have serious problems.

And saying California "supports" the rest of the country is an exaggeration. California is a net federal tax contributor because it has a lot of wealthy taxpayers, but federal revenue comes from all 50 states.

The question isn't whether California generates wealth. The question is why a state that rich still struggles with housing affordability, homelessness, high energy costs, and a high cost of living.

3 hours ago, TedG said:

Yes, Europe is declining and a tweet from someone does not disprove it.

Some guy i follow on tweeter said so though.

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