Could California be seeing onset of recession? (Sacramento: renting, crime)

[kishac]

Originally Posted by jm1982

Think of the tone Obama had towards business .

Remember the talk of "redistributing the wealth" and "you didn't build that!"

yeah, the second quote was taken out of context by Obama's opponents. yes, successful businesses are built from the ground up but he meant that that success should at least be partially attributed to public goods (e.g. educated employees, law enforcement, roads, sewers, etc etc etc).

[DabOnEm]

Originally Posted by Finper

I wonder if the big tech companies like Apple gets covert tax breaks so they'll stay in Ca. There's a lot of negatives about SF like traffic, homeless, real estate. They could move to another state easily but non of them do

They might and what you are seeing a lot of them do is have more workers in lower cost states. I know Apple has more employees in the Austin area than it does the Bay Area. I believe Samsung as well. Makes the most sense to have the middle managers and more admin staff in cheaper areas while keeping the higher salaried people in the Bay Area since they can afford it.

[sav858]

Originally Posted by Finper

I wonder if the big tech companies like Apple gets covert tax breaks so they'll stay in Ca. There's a lot of negatives about SF like traffic, homeless, real estate. They could move to another state easily but non of them do

Those other states don't have the workforce Silicon Valley does, so it's not really that easy.

[sav858]

Originally Posted by DabOnEm

They might and what you are seeing a lot of them do is have more workers in lower cost states. I know Apple has more employees in the Austin area than it does the Bay Area. I believe Samsung as well. Makes the most sense to have the middle managers and more admin staff in cheaper areas while keeping the higher salaried people in the Bay Area since they can afford it.

I don't see how that is even possible when more people work at the Apple headquarters in Cupertino than the entire state of TX combined.

[DabOnEm]

Originally Posted by sav858

I don't see how that is even possible when more people work at the Apple headquarters in Cupertino than the entire state of TX combined.

Where Apple Has Quietly Built Its Biggest Campus | Fortune

You're right. I had that wrong. They're largest campus is in Austin now, which is still saying something.

[jm1982]

Originally Posted by DabOnEm

Where Apple Has Quietly Built Its Biggest Campus | Fortune

You're right. I had that wrong. They're largest campus is in Austin now, which is still saying something.

That's interesting about Apple in Austin . Always only hear them talking about Cupertino mostly in the news .

[phantompilot]

Unfortunately its all true, yes the recession is starting, and tech will fall the most and have the biggest impact.

That's just to be expected. Its the inverse of the boom, which has had its run, and was powered nearly entirely by tech.

Actually all those people complaining about high housing prices - (hey there Perma Bear) - this is your opportunity.

A few years AFTER you lose your job, that place you have been eyeing will be within your reach, if only it were still 2017 and you had income and savings.

Ah well, there's always next time, right?

[phantompilot]

Originally Posted by TR95

But I'm sure with the new 20% corporate tax rate, companies will now invest in infrastructure and afford to hire more employees.

Except in CA which is anti-business. CA is particularly hostile to infrastructure. So companies will avoid CA like the plague.

Nobody will ever build another fab in CA.

Amazon will not put a HQ here.

Most large tech companies don't make expansion plans in CA anymore.

Only the high-flyers (whose fortunes can reverse also) will think it prudent or can afford to squander money on California.

[2sleepy]

Originally Posted by majoun

NV is also gaining tech companies, in both Reno and Vegas. NV has the advantage of being close to CA as well as less expensive and more business friendly.
NV is much better served by the new tax bill than CA is. Said bill is an act of economic warfare against CA although good for the country as a whole.

Not really..battery factories and lights out data centers are NOT tech companies.

[2sleepy]

Originally Posted by phantompilot

Except in CA which is anti-business. CA is particularly hostile to infrastructure. So companies will avoid CA like the plague.
Nobody will ever build another fab in CA.
Amazon will not put a HQ here.
Most large tech companies don't make expansion plans in CA anymore.
Only the high-flyers (whose fortunes can reverse also) will think it prudent or can afford to squander money on California.

yeah sure thing...

"California also fared well in the three slices of the corporate world tracked by Amex-D&B. Here’s how the state did, 2014-17, and how it ranked nationally. …

Small businesses, annual sales under $10 million: Added 46,413 companies, second to Florida.

Mid-size, $10 million and $999 million: Up 5,325 companies, tops in the nation ahead of No. 2 Texas.

Big, sales of $1 billion or more: Increase of 97 companies, second only to New York.

Now you might argue that because of California’s size — it is the nation’s largest economy — such leadership in company growth isn’t unexpected. But even if you rank states on percentage growth, California still looks pretty good in this period: It ranked 10th best for small business creation; No. 17 for mid-size; 23rd for giant companies and 13th in overall growth."
What business exodus? California tops in U.S. for company creation – Orange County Register