California in deep doodoo asking for federal aid. where is the business outflow?

Discussion in 'Economics' started by KINGOFSHORTS, Jan 9, 2010.

  1. A question, how is it that a state with the highest state income taxes and sales taxes and all kinds of rules and regulation seem to attract so much business? Not only that but a very high cost of living for its employees.

    You always hear that high taxes and government intrusion runs capital out.

    But California has silicon valley and so many high tech industries there. Why is it that they are not packing there bags and moving to more business friendly environments.

    I wonder if this is a classic case of Giffen economics. (google Giffen goods)
  2. jem


    its a hangover from when we were a great libertarian state.

    There is almost no substitute for the opportunity combined with the ocean the mountains and the weather.

    We have lots of smart entrepreneurs and access to capital. There are interesting people and opportunities here. Partly because of the industry and universities.

    I love San Diego, I just regret how our future is being so compromised by our state government. if they could just cut the spending - we would still be fine after a period of adjustment.
  3. If you've never lived here, you don't understand. Today was 72 degrees F, at 4:00 pm. What was the temp where you live? You can't beat the quality of life here, even if you have to put up with a shitty ass state government. I have never found a place that I love to live at more. It's the price you pay for quality of life, and the California government knows this.
  4. jem


    funny that rice rocket and I were writing the same thing at the same time. its great to know there are other correct thinking Californians.
  5. yeah lowlifes are attracted to California like flies are attracted to shit. that's what's put California in its current financial position.

    - - not in any way a jab at you - I'm talking about the criminals, drug abusers, welfare abusers, etc.
  6. jem


    you are right -- that was how Mayor lindsay and the liberals destroyed New york in the late 60s and 70s.

    If you wish to destroy the prosperity of a tax base all the legislature has to do is make sure they have good welfare give aways and health give aways. The free loaders will move in a overwhelm the tax base.

    new york did not return until guiliani instituted work fare.
  7. I find it quite interesting that as long as the weather is good and the strip clubs abound, you can tax the shit out of buisness and they would not leave.

    This is why I think the theory is bunk tax = buisness leaves since even if you tax the hell out of business they still stay in the highest tax and government regulated state.
  8. This point cannot be overemphasized: the money California needs is within California.

    Every time I'm in southern California I see thousands of million dollar homes and thousands of Mercedes'. Don't say, "There are poor parts of California". Again - this is undeniable - the money California needs is within California.
  9. 377OHMS


    Yes, but we would really prefer it if the Federal Govt. could bail us out.

    In California the budget problem is actually simple:

    Republicans won't allow property taxs to be increased.

    Democrats won't allow spending to be curtailed.

    The state is ungovernable and would be better off if it was split into N.Cal and S.Cal. except then there would be a war over water. There will probably be a war over water anyway.

    A federal bailout might buy some time and we would really appreciate the help. Never mind that some of you pay 10%+ property taxs in your states. :D
  10. That is one point that Bloomberg made in New York, people will stay as long as you maintain services. If you raise taxes and cut services, (police, garbage, parks, schools, etc) things go to hell in a hurry.
    #10     Jan 10, 2010