The growing number of people moving out of blue states should concern state officials, but they seem content to watch their population hemorrhage rather than change their leftist policies. What baffles people in our space is their failure to deal with the core cause for the exodus of people and businesses. What are some of the reasons large employers are already fleeing high-tax areas?
Always Grabbing for More
And not just your self-defense rights, either (although certainly that). California is the poster-child for how leftism will implode any economy. Once touted as the 7th largest economy on the planet, the state has entered an economic freefall. The middle class continues to shrink with thousands packing up for the business-friendly states of Arizona, Nevada, Utah, and (of course) Texas.
State government mandates, such as arbitrarily boosting the minimum wage to $15 an hour, are forcing blue states to play a shell game, with a different tax under each shell. Regulatory costs are egregious. The firearms community was shocked when Weatherby announced that they were moving to Wyoming. But the economic impact of regulation has an invisible, insidious side to it as well. Massive employers like Adobe or Toby Scammell’s Womply haven’t fled the bay area, but they are expanding into Utah rather than growing at home. The opportunity costs of authoritarian policies are harder to measure, but more lasting in their economic consequences.
Companies See No ROI
Business needs both employees and customers. If your hard-working employees are leaving the state, you need to be close behind. Taxes that were supposed to be used for road repair and other infrastructure have been shifted to hot-button issues, such as funding attorneys for illegals. Now that the president’s recent tax bill has eliminated the deduction for state property taxes, the pressure on high-tax areas is tougher than ever.
It’s not just taxation. Over-regulation is a hallmark of liberal government. When your competition thrives in lower regulated red states, the decision to leave is not difficult.
When Politicians Disregard the Law
Following the lead of Democrats in Washington, many state politicians ignore any law that gives them political gain. They want to silence enemies so they support the fascist behavior of groups such as ANTIFA and ignore gang violence because they are afraid to upset constituencies that support those groups. Besides the obvious example of sanctuary cities, politicians in California do nothing as coastal communities are plagued with gang violence and the mass stupidity of ANTIFA. If cornered to comment, they defend the right of the ANTIFA thugs to protest but ignore the First Amendment rights of Libertarian and Conservative speakers. This disregard for the rule of law does not lend itself to a business environment that anyone would want to work in.
Until business owners and residents of blue states take back control of local government, this sad decline will continue. These states are a magnet for criminals and those who want to live off of the government. Smart business owners find ways to relocate to red states. Those that move, thrive. Those that stay behind suffer. It’s cold comfort, but one thing we know is that no matter how ugly shit gets out there, we can help you prepare to face it.