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Old 05-06-2010, 01:02 PM
 
Location: Orange County, CA
3,730 posts, read 5,263,033 times
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Still another blow to California comes from this report that ranks California as the worst state in the nation for business, and calls it "the Venuezela of North America". Rounding out the bottom five are New York, Michigan, New Jersey, and Massachusetts. Texas was rated tops for business, followed by North Carolina, Tennessee, Virginia, and Nevada. This is a grim evaluation for a state with massive problems, and the prospects for a recovery soon do not appear to be promising.
Chief Executive - The magazine for the Chief Executive Officer (http://www.chiefexecutive.net/me2/default.asp - broken link)
Of 50 states, California ranks 51st | california, magazine, state - Opinion - The Orange County Register
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Old 05-06-2010, 01:15 PM
 
Location: Zurich, Switzerland/ Piedmont, CA
32,260 posts, read 54,969,343 times
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Like I said in the General Forum regarding this article, this is the wrong time for any state to brag about being 'business friendly'.

Case in point: Texas(ranked 1st by this ranking)

The article says that Texas accounted for 70% of all job creation in the US since 2008, but that's really misleading because Texas lost 387,100 jobs in 2009 according to the Federal Reserve Bank of Dallas.


FRB Dallas-Adjusted Texas Employment - Economic Data - FRB Dallas

So if even the state that ranks 1st shed a boat load of jobs too-what exactly is there to celebrate?

Nothing.

For the time being, we all suck.
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Old 05-06-2010, 01:20 PM
 
11,715 posts, read 35,875,875 times
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Quote:
Originally Posted by 18Montclair View Post
For the time being, we all suck.
But some suck more than others. Its like someone losing 4% is a massive bear market when everyone else is losing their shirts. Sure, no one wants to lose money, but I'd rather lose a little than a lot.
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Old 05-06-2010, 01:30 PM
 
Location: Zurich, Switzerland/ Piedmont, CA
32,260 posts, read 54,969,343 times
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Quote:
Originally Posted by EscapeCalifornia View Post
But some suck more than others. Its like someone losing 4% is a massive bear market when everyone else is losing their shirts. Sure, no one wants to lose money, but I'd rather lose a little than a lot.
Yes, all true.

But context really clears things up.

Furthermore, if we look at the latest economic growth report put out by the Bureau of Economic Analysis, Texas isnt even in the highest tier of states when it comes to actual economic growth.


Furthermore, it has to be pointed out for everyone who might doubt California's dynamism-California's economy has not contracted-it is still expanding during this crisis, even as states like Georgia, Florida, Arizona and Nevada have seen their economies contract(shrink).

So, we may have problems, but 50th?

I don't think so.
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Old 05-06-2010, 01:33 PM
 
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That map, while interesting, is dated 2007-2008. Things have gotten a lot worse since then.
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Old 05-06-2010, 01:40 PM
 
Location: Zurich, Switzerland/ Piedmont, CA
32,260 posts, read 54,969,343 times
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Quote:
Originally Posted by EscapeCalifornia View Post
That map, while interesting, is dated 2007-2008. Things have gotten a lot worse since then.
That is the latest data available-and so the people who put together this ranking don't have anything more recent either.

We will have to wait till June to see what has happened since the last report.

However, if we look at premilinary data at the national level, there is reason to be optimistic.

In the 4th quarter of 2009, the economy grew by 5.6% which is terrific actually.

And in the 3rd quarter of 2009, the economy grew by 2.2% which is decent considering the times.

News Release: Gross Domestic Product

My biggest concern with California is job growth-we need to see some solid employment gains or else all the good news is in vain.
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Old 05-06-2010, 02:02 PM
 
Location: Central Texas
13,720 posts, read 25,460,557 times
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Quote:
Originally Posted by 18Montclair View Post
Yes, all true.

But context really clears things up.

Furthermore, if we look at the latest economic growth report put out by the Bureau of Economic Analysis, Texas isnt even in the highest tier of states when it comes to actual economic growth.


Furthermore, it has to be pointed out for everyone who might doubt California's dynamism-California's economy has not contracted-it is still expanding during this crisis, even as states like Georgia, Florida, Arizona and Nevada have seen their economies contract(shrink).

So, we may have problems, but 50th?

I don't think so.
Look at the states that are growing faster than TX. Most are like Wyoming or North Dakota. Small economies. Washingtion looks like their growth is 2.0 - just like Texas - but for some reason is rated higher.

California is 0.4 - one fifth of Texas.

In spite of a terrible recession, the US economy is growing slightly. Same with California. But California faces a $46B deficit - that will drag on the growth for years to come. And being ranked bad for business IS significant - as companies expand with an improving economy - they are less likely to choose California than more business friendly states.
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Old 05-06-2010, 02:10 PM
 
11,715 posts, read 35,875,875 times
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Quote:
Originally Posted by hoffdano View Post
But California faces a $46B deficit - that will drag on the growth for years to come. And being ranked bad for business IS significant - as companies expand with an improving economy - they are less likely to choose California than more business friendly states.
Its possible to grow your way out of a deficit but the state government is too stupid to realize that. They see business and personal success as something to be punished, not something to be encouraged. Long term, that's a much bigger problem than a $46B budget deficit. If you're not growing, you're dying.
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Old 05-06-2010, 02:49 PM
 
Location: Zurich, Switzerland/ Piedmont, CA
32,260 posts, read 54,969,343 times
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Quote:
Originally Posted by hoffdano View Post
Look at the states that are growing faster than TX. Most are like Wyoming or North Dakota. Small economies. Washingtion looks like their growth is 2.0 - just like Texas - but for some reason is rated higher.
Probably WA was 2.05 and TX was 2.01-something like that.

Quote:
California is 0.4 - one fifth of Texas.
But keep in mind that at that time, we were in the middle of our foreclosure mess and tens of thousands of loans went into default.

It was really bad, but our economy did not shrink as was the case in many sunbelt states.

This is because of the diversity of our economy. It is a big deal that our economy did not shrink. It denotes our relative strength.

I'm not delusional-California's economy has been severely weakened due to what's happening in the nation and the world.

But I don't see how California could possibly be last when our economy is growing and several states have shrinking economies.

That doesnt make sense.

Quote:
In spite of a terrible recession, the US economy is growing slightly. Same with California. But California faces a $46B deficit - that will drag on the growth for years to come.
The state of California needs to implement a pay-go system such as was used by Bill Clinton and the GOP led Congress of the late 1990s.

Furthermore, the state cannot keep planning to spend money before it actually has it.

Furthermore, California needs to return passing its budget to a simple majority instead of requiring a two-thirds majority. Part of the reason why we have such a bad reputation and that affects how California's bonds are rated is because speculators get scared when they see that we can't even pass a damn budget-and then the minority party uses the two-thirds clause to grandstand and hold up the business of the people.

Also,
California is severly shortchanged by the Federal Govt-meaning California sends nearly 300 Billion Dollars a year to DC and in return, DC spends $250 Billion in CA and approx 50 Billion of California's dollars in other states.

Quote:
And being ranked bad for business IS significant - as companies expand with an improving economy - they are less likely to choose California than more business friendly states.
Its a huge myth that tons of jobs and companies flee the state.

The California Public Policy Institute in Palo Alto put together a very informative report on the state of California's economy last year.

Here is a quote about jobs going to other states:
"[SIZE=2][SIZE=2]Businesses are not fleeing the state.[/SIZE]
[SIZE=2][/SIZE][/SIZE]
[SIZE=2][SIZE=2][LEFT]Rhetoric aside, California loses very few jobs to other states. Businesses rarely move either out of or into California and, on balance, the state loses only 11,000 jobs annually as a result of relocation—that’s just 0.06 percent of California’s 18 million jobs. Far more jobs are created and destoyed as a result of business expansion, contraction, formation, and closure than because of relocation. Business relocations, although highly visible, are a misleading guide to the overall performance of the California economy. The employment growth rate, which takes into account job creation and destruction for all reasons—not just relocation—is a much better measure of the state’s economy."[/SIZE]
[SIZE=2][/SIZE]
[SIZE=2][/SIZE][/SIZE]
http://www.ppic.org/content/pubs/report/R_709JKR.pdf (broken link)[/LEFT]
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Old 05-06-2010, 06:45 PM
 
Location: Earth
17,447 posts, read 23,875,691 times
Reputation: 7264
Quote:
Originally Posted by BlackShoe View Post
Still another blow to California comes from this report that ranks California as the worst state in the nation for business, and calls it "the Venuezela of North America". Rounding out the bottom five are New York, Michigan, New Jersey, and Massachusetts. Texas was rated tops for business, followed by North Carolina, Tennessee, Virginia, and Nevada. This is a grim evaluation for a state with massive problems, and the prospects for a recovery soon do not appear to be promising.
Chief Executive - The magazine for the Chief Executive Officer (http://www.chiefexecutive.net/me2/default.asp - broken link)
Of 50 states, California ranks 51st | california, magazine, state - Opinion - The Orange County Register
Nevada has very similar problems to those of California including a massive fiscal crisis and overdependence on real estate. Nevada also faces similar water issues as CA - water issues look like they will dwarf all of California's extremely grave other problems, and the same is true next door. The only silver lining is if more employers flee Arizona and go to California and Nevada due to not wanting the stigma of AZ's policies (in many cases returning to CA and NV)

North Carolina is also amongst the states with the highest unemployment due to an overdependence on real estate and too much growth based on faulty models in the earlier part of the 2000s.

Washington State seems to be doing the best of the Western states, and given that they are more similar to California than North Carolina or Tennessee are, there is much we could learn from them. They never seem to have a budget crisis despite being just as liberal as California. They're hurting just like the whole nation's hurting but less badly.
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