|California and New York are Losing Jobs – Why?|
|07/31/2017||Losing Jobs||Benjamin R|
|keywords: California Losing Jobs New York Losing Jobs high taxes anti business regulations|
All of you must be aware of the fact that for most part of the 20th century California or more popularly known as the Golden State was thronged by people as well as organizations because it had a plethora of opportunities. But the scenario today is a lot different. In spite of the lovely climate and technically skilled workforce that California has companies are still leaving the state and moving to states like Texas.
Hollywood and Silicone Valley are the only industries doing well in California; the middle class has been gutted.
Similar is the plight of New York which was once the hub of opportunity is no more the preferred choice among people. Jobs are few and people are moving out as they cannot afford the taxes and opportunities have become meager.
The main reason behind such a scenario is primarily sky high taxes and anti-business regulations. Some of the other states that have joined the bandwagon of being the most unfavorable state for business after California and New York as are Michigan, New Jersey (Chris Christie could not do enough), and Massachusetts.
Scenario in California
A study conducted by Joseph Vranich, the president of Spectrum Location Solutions, a site selection consultancy based out of California has said that the divestment that has happened across California can be categorized into three types.
The first case includes companies which have completely left the state of California, the second instance is companies which expanded in regions other than California, and the third case is companies who had initially planned to grow in California but finally changed their mind. Vranich says that the number of such events recounted in California between 2008 and 2014 is 1,510. Wow!
But he says that this number is far from reality because there are many such divestment events that do not become public. Hence, the actual figures could be as high as 9,000. So much for that high minimum wage law! How is that working out? Not too good!
In fact, even this number may not reflect the real story because every year many smaller businesses are moving out of California which does not get media coverage at all. However, the most interesting aspect of this divestment is that Texas is benefitting largely as a lot of companies are moving to Texas which in turn is creating job opportunities for people there. As far as figures are concerned it is seen that the loss of jobs from California is around 6.7 percent on a yearly basis.
Keep voting for Democrats California, your state is being vanquished.
Scenario in New York
After lot of changes with the coming of Wall Street and the powerful financial sector based in New York, New York had become somewhat conducive for businesses to thrive and gradually New York became a hub of urban development starting in the late 19th century and continuing for about 100 years.
But the economic scenario in the late 20th and the early 21st century, and certainly when Bill de Blasio took over, began to turn. The taxes imposed became so high that New York slowly became an anti-business state. The result was that many businesses wrapped up and the state became highly unsuitable for tech-startups (the city of Buffalo is a site for sore eyes that is for sure). Not only that but also there were shortfalls of jobs as well because companies had started moving to places like Texas, Florida, the Carolinas, and so on.
Manufacturing in New York has all but dried up. California and New York have something else in common as well, they are both sitting on piles of oil shale which could create thousands of high paying jobs for their middle class but the rich elitists in both states do not want oil shale development. Pathetic!
It looks like New York and California are not the places to be and have not been for some time and will continue to be moribund states. Oh well! Go Texas and other low tax states!
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