Tuesday, March 06, 2012

A Followup on the Tyrannies Post

The consequences of an overly aggressive regulatory scheme as we have in California (which is parallel not centralized in the words of the last post) is pretty easily demonstrated.  The graphic is from Carpe Diem, an economics blog.   The data is from the Orange County Register which ran a story about businesses leaving California.  The pace has picked up in the last couple of years according to Joe Vranich who runs a business helping companies re-locate.  Their website offers services to companies who are looking to move to "boost growth, reduce costs or be in a friendlier environment."   The companies are moving to other states and even Mexico.  The weather bonuses a company gets in California do not outweigh the other climatic costs like the business environment.

2 comments:

eveningson said...

clearly, these are not the companies we want in Mexico. Sadly though, they will come.

Dr. Tax in Sacramento said...

Not sure about that - they could be very good companies. My impression is that Mexico is a lot less maquilladoraish than it was twenty years ago. I expect that part of the reason companies are leaving California is the excessive regulation. But one person's excessive is another's necessary.