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‘Everyone is moving out of California’
By John Seiler An old friend I’ve known 46 years called and said, “I was just hearing from a lot of people that everyone is moving out of California. Are you OK?” She lives on the East Coast. I assured her that things weren’t quite that bad in California. And her statement reminded me of what Yogi Berra once said about a restaurant, “Nobody goes there anymore. It’s too crowded.” What’s important about my friend’s question is the perception California now has across America: as a place people are leaving. The state does have more out-migration to other states than in-migration; population still is increasing here, slightly, only because of immigration from other countries. But the real problem is that the perception of California as a failed state will mean fewer young, ambitious people will come here. As the state with Tinseltown should know, perceptions can be more important than reality. So although California isn’t as bad off as others perceive it, what’s broadcast is an image of failure: of high unemployment, high housing costs, record high state taxes, out-of-control public-employee union power, environmentalist extremism and decades of misgovernance. Texas Gov. Rick Perry gained national headlines earlier this month trolling in California for jobs and businesses to bring back to Texas. Probably not many businesses were convinced to leave the Golden State for the Lone Star State. But young business entrepreneurs everywhere might have been influenced. A computer hotshot in Pennsylvania might choose Austin instead of Silicon Valley because in Austin it’s easier to buy a decent-sized home — or any home — and taxes are a lot lower. His salary — say, $150,000 a year — goes a lot farther in Texas. No one knows about the young hotshot’s choice because he never moved to California in the first place; so he never “left.” But California still has lost a productive worker and taxpayer. This probably has happened tens of thousands of times, and will happen tens of thousands of times more. California’s real problem may not be people leaving, but talented people not coming here who in better days would have streamed in.
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June 19, 2013
Can you blame them?
This is why we need to Downsize California.
Its going to worse before it gets better. Sacramento is obstinately dedicated to driving this beautiful state to the poorhouse in a Rolls Royce.
Ca. Has gone beyond the point of no return. It will begin to resemble a third world country in the near future. It’s a shame, it is a beautiful place geographically. Thank you liberal politicians.
Come on, it’s not “immigration” from other countries, it is illegal entry from other countries.
I just checked out the rates at the U-Haul site to see how much it would cost to rent a 20′ truck from SoCal to Dallas and viceee versaaa. Here is the breakdown:
Dallas ——–>SoCal $1058
SoCal ———>Dallas $2222
It cost twice as much to move to Tejas! This is not a perception! Apparently, the demand to move out of California is great and U-Haul, being good capitalist, are taking advantage of it!
There’s a good book titled, “How money walks” by Travis Brown which discusses how states are now competing for dollars as a result of tax policies in individual states.
“The book compiles data from the IRS detailing how Adjusted Gross Income (AGI) moves based on tax policies on a county-by-county basis all across the country. State income tax rates vary pretty wildly, and places like Texas and Florida and, more recently, Kansas, are benefitting from individuals moving themselves and their AGI to places with lower tax liability,” Brown said. This book tracks from 1995 to 2010 and shows how people in say, Saint Louis County, have moved millions of dollars of AGI to Dallas County, Texas.”
See more at: http://themissouritimes.com/260/travis-brown-authors-book-how-money-walks/#sthash.fhrQpURm.dpuf
I work for a specialty tax consulting firm that handles business incentives and corporate taxation that’s based in Sacramento. I can tell you first hand that there is an exodus occurring that is made of up of established and fledgling businesses, and it’s been in the works for a long time.
There were businesses that were going to wait to take advantage of our services to see what the results of the elections. When Prop 30 passed and Obama got reelected there were businesses that thanked me for my time, and proceeded to shutter CA ops, and relocate to UT, and GA, but the majority headed to Texas.
And, of course, Mr. Seiler, you are not participating in promoting that negative perception of CA! Oh, No!
Bad John ! Very, very bad John! You are not spinning a chamber of commerce twist!
apparently this is “bad reporting”, according to our own emily litella. lol lol…..
Seesaw….providing heaps o’ laffs, every day……..
Because Kommiefornia is turning into a 3rd world shit hole…
I cant believe anyones really surprised by this. But…there will be 3 more leaving on the 1st of april. My buisness re-opens in San Antonio the following week. My wife & I have decided that it was a mistake to move here from Colorado & we simply cant run the buisness in a state that gouges us at every opportunity. Oh well….sa-la-vi.
perceived?
we know about the state parks “misplacing” 50+ million yet asking for more in a proposition. high speed rail with no private investors, LAUSD in hot water with bad teachers, low test scores and yet a new tax to pay for our kids future.
3 cities filed for bankruptcy, pension-held cities cant pay their cops and firefighters. i just saw a new ad for measure A asking for more money for these guys. i personally know 4 people who have left our state due to high cost of living.
the ground work is being paved right now with facts.
we have the highest taxes in the country and the largest unions right here!
As a high school teacher, I see a lot of my students moving out of state. Have one leaving tomorrow for Missouri, and several have gone to Texas with their families because they can do better than in California. And me? When I retired you better believe I won’t be in California!!
As I’ve said all along, money moves a lot easier than people. People can be tied down by family or mortgages or customers. An accountant in Semi valley has built up his customer base over the years. Moving to Texas garauntees nothing. All his customers are back in Kali. And his kids are in school and have best friends and his family may be in Kali.
New California collage graduates have no such roots. I’m sure many are leaving the state that educated them and are going to a state that will employ them. Investment money has no such roots either. Smart money from Kalifornia may be invested in Florida or Texas rather than at home. Money from outside the state will most likely be spent in a lower taxed, lower regulated state.
If there is an exodus of people from Kali, its from the kids it educated, headed for a job in another state.
Hondo…..
Texas salaries aren’t as high as those in California, even for people in high technology jobs. Add to that the fact that Texas has one of the highest percentages of people living in poverty, spends among the least of all states on education and training, and will be a purple or blue state in the fairly near future due to demographic shift, it’s hard to understand why you libertarians think it’s some kind of utopia.
On top of all that, when you wake up each day you’re still stuck in Texas.
What Dan said.
I spent 2 years in Texas; Austin, Houston and Corpus Christi. This State runs on fraud and back room deals. Culture is something they think you find in a petri dish. Attitudes towards women are particularly odd compared to any other State I’ve lived in. And if you wonder how anyone could elect mental midgets like Bush Jr and Rick Perry, it’s because they represent the common intellect of Texas. Any business that packs up and heads to Texas should seriously research the reality of what they’re getting into. I couldn’t wait to get back to California. This in not meant to be trolling for an argument, just a serious appraisal of Texas based on my experiences there.
SkippingDog:
By your reckoning, Kalifornia is the greatest place in the world to be unemployed. SkippingDog, the greatest social program is a JOB.
Hondo..
A job is certainly the most desirable circumstance, Hondo, but you didn’t explain why such a large percentage of Texans are living in poverty, even if they have a job there.
You also didn’t explain why or how people moving to Texas are going to be more competitive as workers in a place where basic things like education and infrastructure investment are largely ignored.
The petroleum industry is one of the largest drivers of the Texas economy, along with federal military spending. There are only so many “good jobs” available in the petroleum industry for untrained people with a strong back, so the lack of education or training will not do a single thing for people who aren’t able to be roustabouts on a rig or in a refinery.
skipper there were lots of poverty in California just as well. 60% of school kids qualify for free lunches. There is poverty in all the states. Texas does not have the best unemployment rate either. Even Hawaii has a lower unemployment rate then Texas. I didnt choose Texas to move to, but couldnt take CA anymore after 35 years and moved to where I could enjoy life, have the freedoms and money to do things without the stress of crowded freeways, high taxes and cost of living. Sorry but no thanks, Ca is only a place to visit now.
All this Cali-bashing spurned me to action because I am still loyal to the state I’ve lived in since I was six. I’m sure what I’ll describe can be found in numerous other states, but I want to present at least one positive version of “real” life in Cali, with as little falsehoods or political coloring.
A day in the life in early Spring (or summer, fall, winter): I wake at 6:15 am to the sound of birds. I draw open the curtains and the San Gabriels in the early sunlight. It’s a mild 58 degrees.
By 7am I am at work near downtown LA, a 20 minute, 12-mile commute. I run a manufacturing firm which has been headquarted in the same location since 1949. Most of our employees have been with us over 15 years, turnover is low, and loyalty is high. I quickly yell out hello to some employees: a Mexican-, a Chinese-, a Philippine-, and a Czech-American.
I spend the day talking to people from all over the country and world, and when talk turns personal, the first question is usually, “what’s the weather like in Los Angeles? Mine is terrible.”
I leave around 5pm and return to my house, a historic arts and craft cottage with four 100-year old oaks. A few neighbors greet me (one is a gay pastor of an Episcopalian Church), the other a widow of a well-known Broadway playwright.
Many of the flowers are in full bloom, purple lavenders, white cistus, yellow daffodils, magenta valerian, and roses in a multitude of colors.
I go for a hike in the local mountains, and after 20 minutes, I can see the ocean in the distance. My friend calls me and says she’s leaving for her cabin in the woods where there’s still snow. And a surfer friend posts on Facebook that he’s going to catch the last waves of the day.
Later I grab dinner, and decide between Thai, Chinese, Mexican, organic vegetarian, or Greek. But I’m not dressed for a four-star meal, so I get away with a $15 tab at the local Lebanese place which is equally as good.
The moon is full on my drive home and I can see a few constellations. As I wind down in my backyard with a glass of wine, all I hear is the breeze rustling the oaks.
And no, I’m not living the charmed life because I don’t make high six-figures nor do I live in a gated community or any such nonsense. I’m a middle-class, businesswoman living in an urban neighborhood who is still optimistic that CA has something to offer.
I do agree, Cali is a beautiful place geographically speaking and the lifestyle that can be enjoyed is second to none for now, but the future of the state is in question and for good reason. Without a sound fiscal policy or direction the state will stumble, not to mention our educational system. The question is, will it fall?
I’m interested in everyone’s opinion, whether positive or otherwise.
I’m looking to live in CA for a short period, say, perhaps a year or two. I’m not interested in making money (although it’d be nice), I just want to earn a decent enough wage to get by on. I don’t want to get involved in politics, I’ve seen enough from my experience in international humanitarian work. I just want to live a healthy lifestyle in a beautiful sunny State.
What do you think, Californians, is it possible?
Mandeep
If you can get yourself qualified for for the free social services given to the freeloaders it a great place to live. I’m not talking about those truly in need!
Don’t plan on assistance in starting a business as California is the worst place in the USA for business.
If you are fortunate enough to make a decent living the State will take 13% to give to the ever growing number of freeloader and so called Public Servants”.
If I were you I’d look at Texas?
My family is on our way out. 2 master’s degrees, and 22 years experience, making 90k a year. In Orange County, 90k should be well below the poverty line. With the increased taxes in Jan ’13 now we don’t get ahead at all anymore, and have decided to move.
Was born in Texas, raised in Texas, and from what I’ve seen since I’ve been here they can keep California for the rich. Me? I’m going somewhere that a gallon of milk costs less than a gallon of gas.
P.S. Might want to check your figures up there, Texas doesn’t have state tax.
I moved out of California after living there 56 years.. I sold my home and moved to Idaho Sept., 2011. Biggest mistake I have EVER made in my life and have been trying to get back ever since. The climate, places to go within driving distance, etc. etc. etc. make California the BEST place on earth to live. Cant wait to get back home!!! Don’t ever assume that the ‘grass is always greener on the other side”.