November 23, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Who’s Leaving State? Not Who You Think.

For more than a generation, opportunistic California politicians have barraged voters with woeful tales about how the most productive, inventive, wealthy and enterprising Californians are leaving this state in droves to avoid high taxes and excessive government regulation.

These stories, used successfully by the likes of Pete Wilson and Arnold Schwarzenegger while running for governor, and unsuccessfully by failed candidates from Bill Simon to Meg Whitman and Neel Kashkari, tell of rich Californians seeking greener pastures in more laissez faire states like Texas and Idaho.

There’s only one problem with those stories: They don’t match the facts, even though they are often purveyed by folks with a financial stake in the fables, some of them business relocation experts.
It’s not just that California has outpaced the rest of America economically for most of the last 20 years. It’s not merely that innovative businesses and venture capital investments here are the largest and most successful in the world.

It’s not only that coastal California real estate, property in the state’s most populous areas, brings more cash than comparable real estate anywhere else in America except Manhattan, but also that there are plenty of buyers around with the cash to pay seemingly outrageous prices.
It’s also that truth matters little anymore, with one of the principles peddled by master Nazi propagandist Josef Goebbels in the 1930s and ‘40s proving at least somewhat correct: The more often you repeat and broadcast an untruth, the more people will come to believe it.

That especially holds when some numbers appear to back up the untruth. In terms of people leaving California, there is such a number: California had a net population outflow to other states of 625,000 residents between 2007 and 2014. Newborn children and immigrants more than made up for that loss, so don’t expect the state to lose congressional or Electoral College clout after the next Census in 2020.

But the majority of those departing are not the extremely prosperous residents about whom we so often hear from folks described by Gov. Jerry Brown as California “declinists.”
Rather, of those who left during the latest years for which statistics exist, the vast majority earned less than $30,000 per year. A net total of 469,000 of those leaving possessed no college degree. Given the prevailing levels of rents and home prices in California, it’s easy to see their financial motive in leaving for far lower-priced states like Texas, Nevada, Oregon and Arizona.
But as lower-income residents left there was a net increase of 52,700 residents from other states making more than $50,000 per year who do have at least a bachelor’s degree. The figures come from a Beacon Economics study released this spring.
The upshot is that while it’s true that a few big businesses have shifted their national headquarters out of California primarily because it’s far cheaper for them to expand their facilities in states with lower land prices, most of this state has not suffered much. New businesses arise and succeed here faster and in larger quantities than anywhere except perhaps Israel, also a center of high tech innovation.
Land values remain the primary reason for businesses shifting headquarters or expansion outside California. It’s difficult to attract and retain workers here with salaries under $50,000, because of housing prices.

Said one executive, “I pay some of my people with master’s degrees $70,000 and $80,000 a year and they still have no hope of buying a house anywhere near Silicon Valley.”
That reality explains a lot of the corporate expansion to cheaper states.

So does the price of raw land for expansion in places like Las Vegas, Boise or Tucson, where empty desert abuts directly on city limits. That situation is rare in California, but it makes large tracts of land elsewhere available at very low prices.

The bottom line: Yes, this state has lost some population to other states, but for the most part it has not been the most creative, wealthiest and entrepreneurial Californians who left. Which means that doomsaying politicians and urban “experts” who say the out-migration numbers spell impending disaster are mostly blowing self-serving smoke.

Related Posts

5 Strategies for Entrepreneurs to Succeed in the Gaming Industry

October 15, 2024

October 15, 2024

Gaming is one of the most competitive industries in the world. For entrepreneurs, this industry offers many opportunities but also...

8 Places to Spend Crypto in LA

September 2, 2024

September 2, 2024

Los Angeles is a vibrant city known for its innovative spirit, and as cryptocurrencies gain traction, many local businesses are...

The Best Sites Where You Can Buy TikTok Followers

September 2, 2024

September 2, 2024

TikTok has been popular as a social media platform with its creativity and popularity. Since it’s the case, many of...

Bitcoin Mining in Los Angeles and Its Economic Impact

August 12, 2024

August 12, 2024

Once a quirky computer pastime for the geek squad, bitcoin mining has become a significant economic force in places like...

How to Stay Safe While Enjoying Digital Entertainment in West LA

August 5, 2024

August 5, 2024

Recent developments have shown that so much of people’s daily lives are centered on the internet. A 2021 survey conducted...

Why Choose Local Florists for Your Flower Delivery?

May 12, 2024

May 12, 2024

Finding local florists has become easier than ever with the advent of digital marketplaces. Opting for Nashville flower delivery near...

8 Essential Things to Do After a Car Accident in Las Vegas

April 16, 2024

April 16, 2024

A car crash can be extremely traumatic for the people involved in it. Even if there is no major injury...

8 Essential Things to Do After a CarAccident in Las Vegas

April 8, 2024

April 8, 2024

A car crash can be extremely traumatic for the people involved in it. Even if there is no major injury...

Foreign Currency in International Business Expansion

January 2, 2024

January 2, 2024

Business has transformed into a whole different dimension. The interconnectedness across countries is increasing the feasibility of business expansions. It...

How to Select Quality Solar Panels and Installation in California

January 2, 2024

January 2, 2024

As solar energy becomes more affordable and popular, many homeowners in California are considering installing solar panels. However, not all...

Celebrating Christmas in Las Vegas: A Winter Wonderland of Fun and Festivity

November 15, 2023

November 15, 2023

As the festive season approaches, Las Vegas transforms into a glittering winter wonderland, offering a unique and magical Christmas experience....

Navigating Oxnard’s Public Transportation System: A Driver’s Guide

November 2, 2023

November 2, 2023

Whether you live in Oxnard or want to visit, it’s useful to know how to get around this coastal city....

15 Tips For Keeping Burglars Out Of Your Business

October 16, 2023

October 16, 2023

In the ever-evolving realm of business security, the persistent threat of burglary perpetually looms overhead like a dark cloud. The...

US Gambling Laws

July 12, 2023

July 12, 2023

Whilst casino gaming is a significant part of the American culture, US gambling laws are ever-changing. Prior to the Unlawful...

Reasonable Renting in The City of Angels

June 2, 2023

June 2, 2023

What would it be like to wake up in a bustling metropolis filled with endless possibilities, set against rows of...