Written by Miguel Palacios
People are leaving California. This is not a myth. As reported in early April, several businesses like Tesla, HP, Apple, Dole, and Nestle among others, have decided to pick up stakes and move their operations to other, more tax-friendly states, such as Nevada, and Texas. When major companies like these move, they take jobs with them, and in many instances, instead of having to hire all new employees and train them to get them up to speed, they simply pay for their current employees to relocate. Not only is California losing major corporations, but it is losing the jobs and the employees that go with it.
The issue of people leaving may not seem like an issue to some, but in the grand scheme of things, it is a major problem. It hurts not just the economy, but the state overall. For the first time in California’s history, it is losing a congressional seat. For those who are unaware of what this means or how it works, Congressional seats are allocated to states based on their populations. The larger the population, the more congressional representation that state has, which ultimately means that that state has more say than the other states with smaller populations. With the exodus of California residents to other states, California is losing some of its political power in Congress, which can be detrimental to its residents and their needs.
Some officials have reasoned that the exodus is exaggerated and that the numbers even out with the large number of people who move into the state, but that is not supported by the US Census Data. And though some cities have tried to prevent the mass migration of their laborers and economic earners by proposing policies that supposedly level out the income inequality as well as implement exit-taxes on wealthy individuals seeking to leave, these solutions are terribly short-sighted and do not deal with the real issues that are causing people to leave.
Instead of implementing programs that would help people, the state would altogether be better off if it focused on changing the problems that are scaring people away. One major example is the issue with AB5, Assembly Bill No. 5, which made independent contractors full employees, overnight. Many businesses cannot afford to have as many official employees because it requires them to pay more in other areas like benefits, and insurance. Having independent contractors gives businesses and corporations the flexibility they need to operate at full capacity and make profits. It also helps the people who choose to be independent contractors because they are not held to the same strict guidelines as full employees and have the flexibility to work on their time and as they please. AB5 restricts both companies and individuals from working how they want when they want.
Some states have certifying or licensing agencies that differ from their counterparts in other states. One example is the California BAR Association. The BAR is responsible for vetting and licensing future lawyers, to ensure their integrity and the integrity of the state BAR. The problem is that some state BARs are more restrictive than others and refuse to consider some individuals for future licensing. California has one of the most restrictive BAR associations in the entire country. This means that though someone may have committed a crime when they were younger, their future is determined by their past. For the record, there are other states that do admit ex-felons to their BAR associations, given that they demonstrate a change in moral character. It is not beneficial to anyone to judge someone by a mistake they made in their past. Especially if it is not a recurring one. By restricting people and making it harder for them to obtain gainful employment and licensing, it pushes them to states that will give them a second chance.
All it takes is common sense, but California legislators don’t seem to get it. The restrictive rules and heavy taxes on their residents are not helping them in the long run. The only way to turn this thing around is to remove the current problem-causing individuals, like the current governor, Gavin Newsom, and the heavy left-sided legislators, and replace them with the people who are going to put the people of California first. Until that happens, people will continue to leave and congressional seats will continue to be redistributed to other states.
Photo via Richard F. Ebert
