Friday, November 11, 2005

Companies fleeing California!

Well it sure didn't take long, now did it? We here in California have known for over a decade that corporations are fleeing our state. After the recent defeat of the governors reform initiatives we can expect the flood gates to open widely.

Cross-poted here: Nov 11th, 2005: 11:54:58

On November 9 2005 the day after the special election the Nissan Corporation announced its moving its north American headquarters from Los Angeles (Gardena) to Tennessee. Although these plans have been in the works at Nissan for some time, the timing I'm sure was specific. The writing on the wall couldn't be clearer, and a possible trigger or professional nod to other companies who were for a time holding off moving to see if our governor could turn the state around might be at hand.

Jane Larson of the Arizona Republic writes:

Other California companies such as Google and eBay are expanding into Arizona, seeking a haven from the high costs of doing business. And economic development leaders say the trend can only grow as the two states' economies become more joined at the hip.

Google, the Internet search giant, is scouting the Valley for a location for about 600 engineers and software developers. Ebay, the online auction and payment service, is building a data center in Phoenix and hiring top technical talent to run it.

In their march to Arizona, these companies are following other big names, including:
DHL Systems, the package delivery giant that consolidated data centers from the Bay area and other locations in Scottsdale in 2002 and has continued to add offices and hundreds of employees.

Countrywide Financial Corp., the Calabasas, Calif.-based mortgage lender, opened a campus in Chandler and expects to have 4,000 customer-service representatives, information-technology workers and other employees here by the end of 2006.
Intel Corp., the Santa Clara, Calif.-based chipmaker, has begun building a third plant in Chandler.

what, if anything, would keep companies and for that matter people from moving to cheaper more business friendly states?

Since the labor unions operate more like a political entity than an organizational entity and clearly own the California legislature our prospects for fiscal discipline in this sate is dismal at best. Now that the people have told the governor they want "business as usual" and the "status quo" I expect to see every tax imaginable thrown our way.

Starting with the car tax, expanded corporate taxes, "the your too rich tax" and ending somewhere just short of total socialism this State is trouble with an 8 million dollar deficit, continued deficit spending, and not a penny more to borrow Nevada is looking more and more promising by the minute.

Knowing Californians to be reactionary other than pro active it will take the coming financial meltdown and bankruptcy before the voters will do anything about it. Until then my advise would be find a nice RED STATE, move in, buy a big screen TV, pop some popcorn, and enjoy the show!

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