When we say California is being destroyed, that’s an understatement. California residents suffered financially last year as businesses and citizens fled the high-cost environment because of its restrictive and progressive measures.
The state of California has hit rock-bottom when it comes to personal income growth. According to data recently released by the Bureau of Economic Analysis, it saw the lowest net earnings increase in the nation, with only a 5.0% increase compared to the national average of 8.0%.
It’s no surprise that California’s personal income growth has suffered after its tough lockdown restrictions and a heavy-handed government. Recent data shows a trend of states in the northeastern and western United States continuing to shutter businesses, while southern and midwestern states quickly reversed their mandates.
Texas, Arizona, Idaho, and Utah are among the states that saw the strongest net earnings increases, and experienced the fastest labor market recovery.
California was hit the hardest regarding the exodus of businesses and residents. This is due to the state’s high taxes, excessive regulation, and an ever-increasing cost of living. An analysis by the Hoover Institution, a conservative think tank at Stanford University, found that California’s businesses left the state more than twice as fast in 2021 compared to the rate in 2020 and 2019.
Meanwhile, Texas attracted the most relocations, including notable companies like Apple, Wells Fargo, and Disney.
The Hoover Institution noted,“California state and local economic policies have raised business costs to levels that are so high businesses are choosing to leave behind the many economic benefits of being in California and move to states with better business climates featuring much less regulation, much lower taxes, and lower living costs.”
PragerU did a piece in 2020 on why people are flying to California.
An analysis by the Tax Foundation shows that California has an effective tax rate of 13.5%, which is among the highest in the nation. Among states, only two have higher business tax burdens than the state, according to another study.
What’s worse, only two months ago, Democratic Governor Gavin Newsom reversed the COVID state of emergency.
The state is actively trying to become a third world state with its just awful policies. Gavin Newsom might go down in history like Biden as the most tyrannical government officials in the country. Hopefully the lunatics who chose to vote for those people go down with the ship and don’t spread their cancerous voting habits elsewhere.
Let’s continue this conversation, in the comments below.