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Golden State Exodus

Not exactly news to many of us, but explained well:

The number 1 topic of conversation amongst the despised 1% in California today is when you are leaving California or whether you can leave. Property owners who cannot move their apartment building or office complexes can move their homes and change their residency. On a flight from Austin, Texas to Orange County last week, I sat next to the owner of a substantial manufacturing business whose plant is in the inland southern California community of Ontario. He lives in Austin, flies in on Monday and home on Thursday. He spends less than 180 days a year in California. His savings in state income taxes more than pays for his airfare, hotel and rental car expenses. His home and gas and energy all cost less in Texas. More significantly, he will not expand his plant in California and intends to move his plant and people to Texas over the next five years.

Colorado should also probably see some benefit from this, if we don’t blow it, which we likely will.  Of course, California still has some advantages.  There’s a huge tech base, and ports can only operate on a coast.  But just as Charleston and Savannah are diversifying the East Coast’s port activity, there’s no reason why Seattle and Portland can’t do the same for the West Coast, eventually.   Those states are still Blue Social Model states, but far less entrenched.

Posted in Business.