Business flees People’s Republic of California – socialism wins

California was once the capital of business and technology innovation. Aerospace, computers, software – all manner of high tech industry was headquartered in California. All of that is changing, however, as this once great state has become the People’s Republic of California – a socialist, anti-business, anti-capitalist, collectivist state. In response to confiscatory taxes and oppressive environazi regulation, businesses are abandoning the state for more friendly environs. (story here from Gateway Pundit) In this respect, California is the proverbial “canary in the coal mine” – a harbinger of things to come under our dear comrade leader’s regime.

Computer software giant Adobe, computer game monster EA Games, and Internet auction king ebay are abandoning California to set up shop in Utah. Why? California’s horrid business climate and high taxes.

Adobe Systems, maker of a suite of graphics programs such as Adobe PDF, Illustrator, Photoshop, and InDesign, have announced that they are building a $100 million facility in either Salt Lake City or in nearby Utah County, Utah. The facility will bring thousands of jobs to Utah over the next few decades.

In May the Internet auction company ebay also announced a major new facility to be built in Salt Lake City. The $287 million data center will also bring hundreds of new jobs to the Bee Hive State.

Not to be forgotten, games maker Electronic Arts opened its new facility in July in Salt Lake City where around 100 employees are already at work.

These companies fleeing California’s horrid business climate are not alone. There has been a steady flow of businesses out of California for the better part of a decade. As California’s political morass worsens, as its budget woes increase, and as her politicians are proven incapable of making the hard budgetary decisions to take power from unions and chop unnecessarily lavish social programs, the state’s jobs are bleeding out. California is an a freefall the end of which is still unseen.

This should not be surprising to anyone who has a half ounce of business sense. When you create a climate that is exceedingly unfriendly to businesses, they will move – out of necessity. And they will take their jobs (not the government’s) with them. The following is a partial list of companies abandoning the PRC (more here):

American AVK, a producer of fire hydrants and other water-related products, moved from Fresno to Minden, Nevada.

American Racing moved its auto-wheel production to Mexico, ending most of its 47-year operation in California.

Beckman Coulter, a biomedical test equipment manufacturer headquartered in Brea, relocated part of its Palo Alto facilities to Indianapolis, Indiana, two years ago. In early 2010, it’s making a multimillion-dollar investment to expand and create up to 100 new jobs in Indiana. The company said the area offers a “favorable business environment and lower total cost of operations, plus a local work force with strong skills in both engineering and manufacturing.”

Bill Miller Engineering, Ltd., suffering under the “hostile business climate” in California and Los Angeles County, moved from Harbor City to Carson City, Nevada.

Buck Knives after 62 years in San Diego moved to Post Falls, Idaho.

Checks To-Go moved to Utah where workers’ comp rates helped make the troubled company healthier.

Creators Syndicate may flee L.A. because it operates like a “banana republic.”

eBay, based in San Jose, will create 450 jobs in Draper, Utah, in a new $334 million operations, customer support and data center.

Fidelity National Financial left Santa Barbara for Florida, spurred by California’s “oppressive” business environment.

Gregg Industries, owned by Neenah Enterprises Inc. in Wisconsin, closed a 300-employee foundry in El Monte foundry under pressure from the South Coast Air Quality Management District to make $5 million in upgrades. The company didn’t want to make the investment in the difficult economic climate so it decided instead to leave the state.

Hilton Hotels Corp. in 2009 is moving from its longtime corporate H.Q. in Beverly Hills to a new office in Tysons Corner, Virginia.

Maxwell America, a boating equipment maker, in February 2010 closed its Santa Ana offices and moved them to Hanover, Md. One reason given was the indirect impact of California environmental regulations. A company official said over the years many California boat builders relocated to the Midwest and East where they don’t face the same restrictions.

Nissan North America moved its Los Angeles headquarters to Nashville, Tenn.

Northrop Grumman by 2011 will relocate its Los Angeles H.Q. to the Washington, DC metro area. It’s the last major aerospace company to leave Southern California, the birthplace of the aerospace industry.

StarKist headquarters is leaving San Francisco for Pittsburgh, Pa.

Tapmatic, a metalworking firm whose owners were “fed up with the onerous business environment,” moved from Orange County, California to Post Falls in northern Idaho.

Toyota will stop making cars in Fremont, will idle 4,700 workers, and move work to Canada and San Antonio, Texas.

US Airways is realigning operations and California is no longer considered part of its “core.” The airline is closing its John Wayne Airport maintenance station and in early 2010 will redistribute the mechanics across its system.

US Press shifted work from Los Angeles and San Diego to Portland, “where union rules were almost rational.”

And yet, there is no indication that California is taking any steps to stem the outflow of businesses and jobs from the state. Unbelievable – and sad…

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2 Responses to “Business flees People’s Republic of California – socialism wins”

  1. Very interesting and informative. I wish more such articles on this portal. Thanks for the article.

  2. good post..great share, great article..love to read it

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