Hide your wallets! (Sacramento, Orange: sales, homes, unemployment rate)

[jeffredo]

Originally Posted by expatCA

Look at the financial condition of the State, Counties, Cities and people of CA. Not just a small sampling, but the whole State.

Real estate bubble burst (hit here much harder than most places other than NV, FL and AZ) and a global near-depression. It won't last forever, but its probably going to take a decade to work itself out and short of North Dakota not too many places in the entire country are going like gang busters.

[tijlover]

This spells bad news for Nevada/Las Vegas! One out of 3 in Las Vegas (an estimate) have come from CA, and do we really need more of these cheapskate refugees coming over here, and voting no on any tax increase, while enjoy a life without any state income tax, and selling their overpriced homes over there, enabling them to pay cash for a house, or 2 or 3, here?

Instead of taking I-15 north to here, take I-40, I-10, or I-8 to Arizona! Or New Mexico!!

[oldtrader]

TODAY THE QUICKEST WAY TO GET A MOVE 40% OF YOUR GROSS INCOME TO THE PROFIT COLUMN IF YOU HAVE A MANUFACTURING BUSINESS, ETC. IN Los Angeles.

Move it out of state.

That is the approximate difference in cost of doing business in Los Angeles vs. other parts of the west and south.

That is the big reason, that one company leaves the state every working day of every week on an average.

Every time that the California state or local government adds on another tax, or finds a way to increase the cost of doing business for a company, this percentage increases which will force more and more companies from the state.

Employees that are well educated and knowledgeable leave the state, for the same reason.

My daughter left California to move to Montana. She is in the IT field, and a supervisor. She makes the same salary as she would back in the Silicon Valley where she was raised, as her company matches salary to attract and keep people with her type of skills. Plus she gets profit sharing, and production bonuses. She is solicited to go back to the SV on a regular basis by headhunters and direct solicitation by companies there.

Why is she here. The difference in cost of living would require a 165% raise to live in Cupertino where she was raised to even equal what she gets here. The housing alone, would require a 597% increase to buy comparable there. Her home here cost her $ 300,000 5 years ago and has constantly increased in value while they had a housing bubble problem in Cupertino. She has a 3,700 sq. ft, 4 level contemporary executive upscale home across the street from the best area in town, on 5 acres of split rail fenced property all level, with a barn and stables. It would cost well over $2,000,000 is she could duplicate it there. She sold her home in California with a big profit before the value burst, and owns this home Free and Clear of loans, while there she would have a $1,700,000 or bigger mortgage.

There are a lot of people still hanging on in California, but if they hit them for more taxes, and other costs to live there, they will do as my daughter did and bail out of California. It is not the poor people who are leaving California in droves as the state takes good care of the poor (the Democrats call them voters). It is the middle and upper class that are leaving.

If the powers raise taxes directly on the middle and upper class people in California, the 225,000 net migration of middle class and upper class people leaving the state every year, will become a mass exodus far in excess of this number.

http://tinyurl.com/8fzl5ao

The poor keep flocking in as California has so many benefits for the poor, and the cost to service them keeps going up.

To come up with the money to take care of them, they raise the taxes and fees for middle and upper class people who pay the bills, and their only alternative is to leave the state.

The upper and middle class, are holding onto their wallets and leaving the state in droves. The more they raise taxes and costs of living in California, the more tax paying people that will leave the state, and the more they will have to raise the taxes and fees to support those that remain in the state.

[Youthanasia]

Well said Oldtrader, well said. Who will subsidize the lives of the non working and illegals when all the working people have left?

[phlinak]

Originally Posted by Curmudgeon

What do you mean by, "some day?"

I didn't say "some day", I said "one day", as in, some election night in the not-so-distant future, the Republican Party will look at the results and realize that they are no longer relevant players, at least not on the national stage.

[user_id]

Originally Posted by phlinak

Truthfully, in the last two elections, we have seen the maturing of Americans both politically and socially.

Not really, what you've seen is an overall browner and less white American population that isn't all that interested in voting for the party of old white dudes. Each year the the Republican voting base gets weaker as republican leaning seniors meet their maker. I suppose the Republicans thought oldsters would always support them, but nope, people don't magically change their politics as they age.

I think the fact that Obama was able to win this year even when faced with a relatively strong opponent demonstrates that the times have changed. The Republican party of today is dead, what is happening in California will be duplicated across the country. In the coming years the new "swing states" will be Texas, Georgia, etc. It will be interesting to see what replaces the current Republican party in the coming decades.

The people though, they haven't matured.

[user_id]

Originally Posted by oldtrader

TODAY THE QUICKEST WAY TO GET A MOVE 40% OF YOUR GROSS INCOME TO THE PROFIT COLUMN IF YOU HAVE A MANUFACTURING BUSINESS, ETC. IN Los Angeles.

Move it out of state.

This is, of course, absolutely ridiculous. The manufacturers that are able to operate in some isolate podunk area aren't in major cities, they don't get created in major metro areas in the first place. The manufacturing sector in Los Angeles is a large array of connected businesses, they depend on each other and one can't leave without the others. This is known as the economies of agglomeration, which you'd know about if you knew about manufacturing.

Also, in terms of taxes, many LA based manufacturers would pay more if they relocated. Why? Because California has low business property taxes and manufacturers usually have millions in business property. Also, being a low-margin business many benefit from a profit tax rather than a gross revenue tax found in places like Texas.

As for the bay area, that is an area that has become highly concentrated technology hub. The fact that mid-skilled workers are being pushed out doesn't represent some sort of problem, all it tells you is that the area is becoming very specialized and the incoming cohort is higher income than the current cohort. The Silicon Valley has been one of the United States key sources of economic growth.

Why do people insist that every part of the country be good for everyone? That is the beauty of living in a large country, many different places for many different people. I'm glad your Daughter has made a better life for herself in Montana, but there are plenty of people that would rather live in a small home in Silicon Valley and design for Apple, etc.

[Youthanasia]

We have a much larger population of young people and immigrants, both of whom are 'entitled'. This isn't a right/left thing it's a haver/taker thing and the democratic party moved from a party which established the formation of the KKK, established Jim Crow laws, and repeatedly defeated anti-lynching laws to one that garnered the support of blacks and other minorities when a democratic president starting giving handouts... that's all you really needed. Certainly there are other aspects such as social and environmental issues which play a role in determining how one will vote but none more so than money, none. When one party seeks to take from one sect of people (a minority) and give to another sect (a majority) who do you think is going to win? people blind themselves with the right/left issue, that's window dressing. Democrats have found the recipe for success, use public funds (handouts and entitlement programs) to purchase votes...it really is genius, they are the smarter party.

[Leonard64]

Originally Posted by Youthanasia

We have a much larger population of young people and immigrants, both of whom are 'entitled'. This isn't a right/left thing it's a haver/taker thing and the democratic party moved from a party which established the formation of the KKK, established Jim Crow laws, and repeatedly defeated anti-lynching laws to one that garnered the support of blacks and other minorities when a democratic president starting giving handouts... that's all you really needed. Certainly there are other aspects such as social and environmental issues which play a role in determining how one will vote but none more so than money, none. When one party seeks to take from one sect of people (a minority) and give to another sect (a majority) who do you think is going to win? people blind themselves with the right/left issue, that's window dressing. Democrats have found the recipe for success, use public funds (handouts and entitlement programs) to purchase votes...it really is genius, they are the smarter party.

They didn't find it they saw it used in the past. It was called "Bread and Circuses" and was used by the Romans. Worked for a while there to. They aren't smarter in a good way anymore than the Roman Emperors were. Look how well that worked out for the average Roman VS the wealthy.

[Youthanasia]

True but it works for them for now and they jumped on it before "the other guys" did so you gotta give credit where credit is due.