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5 large size companies leave California every week for another state, which is one every weekday. Existing companies leaving the state, take away more jobs than the startups that may replace them bring to the table.
As I said in another thread in which you claimed this:
Name some of those substantial companies that have left in recent weeks.
You didn't respond in that thread, but maybe you will in this one.
I'm bullish on CA. Reason: geography. You can't change geography. CA is close to Asia, the center of global wealth creation over the next 100 years. Asian immigration and wealth will spill over to CA, as is already happening. Wealthy Asians prefer to live in CA than in Podunk, TX. CA already has strong historical Asian ties from 200 years ago, so contemporary Asians are comfortable with living in the state. Census 2010 showed that the fastest growing demographic group in CA is Asian. Since Asians are better educated and wealthier than whites, the exodus of white people from CA will raise the average IQ and net worth of Californian households.
Based on current facts you are correct when it comes to the % of Chinese graduating with Engineering Degrees and that Americans are falling behind the 8 ball in math and sciences and not pursuing the same direction, that is where it ends at least for now.
Asians that go to school in the US are better educated than their counterparts who stay in China.
You do not know how cheap Asians tend to be, Chinese in general are very cheap and frugal people, the ones working with me currently and in the past, would send part of their paycheck back to China to their parents and live on less. They stated it was their duty to do so since their parents sacrificed so much for them to get where they are.
Not to mention I can never get a few of them to ever buy lunch, eventhough I will pay for theirs from time to time.
Maybe the Americanized Asians, the ones that were born here are different? I met plenty of both during my last visit to San Jose and many told me it's too expensive, housing is too much and that they could buy a house in Austin for so much and pay it off in a few years. The only reason many stay in the Valley is because there family is there.
As I said in another thread in which you claimed this:
Name some of those substantial companies that have left in recent weeks.
You didn't respond in that thread, but maybe you will in this one.
People have posted the numbers several times and there is a slight lose of businesses but mostly on the very low pay, low margin type businesses. Fast food companies, low margin textile businesses, etc... The type of companies where that last fraction of a penny really does make the difference between profit or lose (because their margins are so thin) and where there really isn't an opportunity to automate more to improve efficiency. That said, the slight flow out of the state is more than balanced by the creation of high margin, high pay jobs in the state.
So where is the problem? The problem isn't in competition between the states but foreign competition. The average wage in china is ~$0.50 per hour with no benefits or any other costs. When a worker gets injured on the job in China they simply throw him into the street and find another warm body for $0.50 per hour. That's where all the labor intensive blue collar jobs have gone. As for the current economic problems of the state, we're in a position much like Japan was in the early 90's where the property bubble popped and now there is going to be a long hang over because it simply takes that long for debt obligations for individuals to get worked out by the courts. It's not going to be fun but this is ALWAYS what happens after property asset bubbles and California will be no exception.
Of course, this begs the question of why we deregulated banking and finance to allow such bubbles to happen in the first place. After all, the regulations were there to stop such bubbles and if the US had followed countries like Canada by not deregulating we would not have experienced the bubble to begin with nor the resulting bust. Remember that next time some snake oil salesman tells you deregulation is the cure for everything.
Since Asians are better educated and wealthier than whites, the exodus of white people from CA will raise the average IQ and net worth of Californian households.
Education is not the same as IQ. Asians aren't smarter, they just got beaten as kids for bringing home A-'s or not getting into Berkeley or UCLA.
Actually the Asian kids do not need to get beaten to get good grades. Asians have a different attitude than the White population as an example, and from the time they are small children are taught by their families to excel. Too many White children are never taught this one principle, and really put no effort to excel. Too many do not work very hard, and it shows.
Compare the race changes in California between 1980 and 2011 according to the Census Bureau
White 1980 was 66.6% and in 2011 was down to 39.7% which is a decline of 40.3%
Black 1980 6.6% and in 2011 up to 7.54% up 14%
Asian 1980 5.3% and in 2011 up to 13.6% which is more than double at 156%
Hispanic 1980 19.20% and in 2011 up to 38.1% which is close to double at 98.4% increase which is by far the biggest change of any race effecting population bring them to almost the same as the White race, and if all the illegals were counted could actually exceed the White population
American Indian 1980 .4% down from .85% or a decline of 52%
Population growth 1980 23.6Million and 2011 37.3Million
The state is changing. This change is big increases in population in the poor economic people, and the decline in the better off economic people. This has made huge changes in the tax receipts, and at the same time a big increase in the need for services provided by the government. The income tax and sales tax receipts are rapidly declining at a time the need for tax dollars is increasing. These changes alone are destroying the ability of the state to provide services to their people.
California lost something like 120,000 jobs last year, at the same time other states such as Texas got better as they increased the number of jobs by 130,000. Other states are getting down into lower unemployment rates while California has the highest unemployment rates in the nation.
California has the biggest population of any state, and an overall economy equal to and exceeding some countries due to its total population, but that is only part of the story. On the other hand, it has a high unemployment rate, lowering tax receipts, cities going bankrupt and others in serious financial condition cutting services right and left such as laying off police officers, closing libraries and schools, increasing class size and having one of the worst school systems in the nation, the state has a huge deficit. Companies are fleeing the state and taking jobs with them, rich people and upper middle class people are leaving the state and taking the taxes they pay with them, which is quite a large part of the reason tax receipts are falling in the state.
California has many serious problems, which a lot of people simply ignore, or refuse to accept.
Actually the Asian kids do not need to get beaten to get good grades. Asians have a different attitude than the White population as an example, and from the time they are small children are taught by their families to excel. Too many White children are never taught this one principle, and really put no effort to excel. Too many do not work very hard, and it shows.
I work in the Medical field and in the last 20 years, the number of Asian ancestry nurses has gone from insignificant to dominate at local hospitals...
Most definitely the family support and parental support is key... I've attended several graduation celebrations and the parents and grandparents, uncles, etc all beam with pride as they speak on what a proud day it is for the family...
The most recent grad was the first from her family to attend college and she postponed her wedding till they both graduated... her husband is also the first from his family to attend college and he is a police officer... two young twenty somethings from very modest backgrounds earning over 200k here in the Bay Area.
I have suggested nursing to others as a possible career path and most, almost all dismiss the option as being demeaning
This is for large companies, moving their headquarters from the U.S. overseas. Just think they can reduce tax rates (FEDERAL) by as much as 2/3rds by moving their headquarters to Ireland as an example. Or to 0% by moving their official headquarters to the Grand Cayman Islands. This report was only about 10 extra big companies moving. They did not cover the ones that started overseas.
In 1977 I spent 10 days in the Grand Cayman Islands, taking a seminar about avoiding the high U.S. corporate taxes, going offshore. I sat directly behind the equivalent of the president of the country with whom I had numerous discussions and shared a couple of meals with, and my wife and I sat next to a good friend of mine Charles Consedine the American Lawyer, CPA tax expert, that wrote the grand cayman laws affecting taxes and working with foreign companies. We listened to speakers such as their equivalent of our Secretary Of The Treasury, etc., from both overseas and the U.S. I was there, as I had a number of regular investment clients from places like Libya, Malaysia, London, etc. and I needed to know how to advise them on how to take ownership, more money to and from U.S. I bought, sold, and exchanged investment properties around the U.S. and as far away as Costa Rica, and Belize.
There are a lot of law offices in the Grand Cayman Islands, which have brass nameplates on their door and hallways of American and other country companies (some quite large), and that is the only thing they have in the country. They are incorporated in the GCIs. Once a year they have to hold a Board Of Directors meeting in the GCIs. They can do it by proxy where a couple of lawyers hold it, using instructions as a guide make company decisions making it legal, and the Board Of Directors meeting is over. Other companies send some top executives on a paid vacation to the GCI and they spend a few minutes holding the meeting and then on to play time which the whole trip is a tax deduction for the company.
It was amazing to learn which companies had moved most of their tax liabilities overseas. The above report was only about a few big ones, but there are a lot of midsize corporations that are doing it. Companies move to another state, or overseas when the taxes and the cost to do business get too high. That is a major problem for California today. And most people never hear about them, including the news outlets. Boeing is being sued by the unions and states to keep them from building a new plant in the Midwest, as they fear a lot of jobs will move to the new plant. States in high cost areas and high tax areas such as New York and California, are fighting to keep the companies and jobs in the state, but are losing ground every day.
Companies leaving California or sending a lot of their operation to another state or overseas, is a major reason California has been seeing corporate tax receipts fall in double digit numbers each year lately.
This is for large companies, moving their headquarters from the U.S. overseas. Just think they can reduce tax rates (FEDERAL) by as much as 2/3rds by moving their headquarters to Ireland as an example. Or to 0% by moving their official headquarters to the Grand Cayman Islands. This report was only about 10 extra big companies moving. They did not cover the ones that started overseas.
In 1977 I spent 10 days in the Grand Cayman Islands, taking a seminar about avoiding the high U.S. corporate taxes, going offshore. I sat directly behind the equivalent of the president of the country with whom I had numerous discussions and shared a couple of meals with, and my wife and I sat next to a good friend of mine Charles Consedine the American Lawyer, CPA tax expert, that wrote the grand cayman laws affecting taxes and working with foreign companies. We listened to speakers such as their equivalent of our Secretary Of The Treasury, etc., from both overseas and the U.S. I was there, as I had a number of regular investment clients from places like Libya, Malaysia, London, etc. and I needed to know how to advise them on how to take ownership, more money to and from U.S. I bought, sold, and exchanged investment properties around the U.S. and as far away as Costa Rica, and Belize.
There are a lot of law offices in the Grand Cayman Islands, which have brass nameplates on their door and hallways of American and other country companies (some quite large), and that is the only thing they have in the country. They are incorporated in the GCIs. Once a year they have to hold a Board Of Directors meeting in the GCIs. They can do it by proxy where a couple of lawyers hold it, using instructions as a guide make company decisions making it legal, and the Board Of Directors meeting is over. Other companies send some top executives on a paid vacation to the GCI and they spend a few minutes holding the meeting and then on to play time which the whole trip is a tax deduction for the company.
It was amazing to learn which companies had moved most of their tax liabilities overseas. The above report was only about a few big ones, but there are a lot of midsize corporations that are doing it. Companies move to another state, or overseas when the taxes and the cost to do business get too high. That is a major problem for California today. And most people never hear about them, including the news outlets. Boeing is being sued by the unions and states to keep them from building a new plant in the Midwest, as they fear a lot of jobs will move to the new plant. States in high cost areas and high tax areas such as New York and California, are fighting to keep the companies and jobs in the state, but are losing ground every day.
Companies leaving California or sending a lot of their operation to another state or overseas, is a major reason California has been seeing corporate tax receipts fall in double digit numbers each year lately.
You post all of this and that, and you never give case studies and examples.
Are movie stars in LA moving to cheaper states? Are the major studios packing up?
Is Apple, Facebook, Google, etc. leaving? And the executives, etc leaving? Do they even want to?
Are the naval and marine bases around San Diego leaving?
Some major banks left/scheduled to leave San Francisco, but they are just relocating headquarters. Relocating headquarters takes fewer jobs than one would think. It is a symbolic blow.
And how do you explain the port. Why don't have the technology to beam up goods. Therefore everything is going to have to pass through Californias ports from Asia to Middle America.
On top of this, a good number of the people I know in LA are self employed and have absolutely NO plans on leaving. So far the only people I have met who are thinking of leaving the state are those retiring, or those who are getting ready to start a family, and want to afford a larger home.
I know an engineer working for Northrop Grumman, and when they relocated their headquarters to the other coast (which by the way another high tax region), and he and most other engineers he knows refused to leave, and the company gave in.
I could go on.
There is more to life than living and doing business in the cheapest place possible, so you can own a seven car garage mansion in 30 degree below zero on 10 acres surrounded by wheatfields with 70 mph winds. Otherwise Bismark, ND should be like 5 million people by now.
Are movie stars in LA moving to cheaper states? Are the major studios packing up?
Is Apple, Facebook, Google, etc. leaving? And the executives, etc leaving? Do they even want to?
Tons of movie and TV production is done outside of California now which would have been almost unthinkable 30 years ago.
Where did Apple build its new giant data center? Where do they manufacture everything?
There was a story in the OC Register the other day about Maurchan, the ramen maker. They're nearing capacity at their plants in Irvine so they opened a new plant in San Antonio.
So its not so much that big companies are flat out leaving California. But when it comes time to expand, they're more likely to do it elsewhere.
Tons of movie and TV production is done outside of California now which would have been almost unthinkable 30 years ago.
Where did Apple build its new giant data center? Where do they manufacture everything?
There was a story in the OC Register the other day about Maurchan, the ramen maker. They're nearing capacity at their plants in Irvine so they opened a new plant in San Antonio.
So its not so much that big companies are flat out leaving California. But when it comes time to expand, they're more likely to do it elsewhere.
Well, that is bad in terms of job growth for California, but its probably a good thing the state is not growing like it was in the 70s and 80s. I could not fathom how many people there would be now.
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