California is learning the hard way that anti-business policies tend to flush out businesses.
In 2018 and 2019 — which were years of economic expansion across the United States — 765 major commercial facilities fled California. Stanford University’s Hoover Institution points to high taxes, government red tape, and other policies that discourage economic activity. Occurrences of companies fleeing the state have become commonplace enough for the California Policy Center to track the moves through its “Book of Exoduses.”
As one young tech entrepreneur who recently left California explains, “I’ve struggled with a government that is notoriously business-unfriendly — with everything from high taxes on earning to badgering businesses to work more to comply with bureaucracy.”
Here are five notable companies and entrepreneurs bolting from the Golden State.
Instead of expanding its production capacities in Palo Alto, electric car manufacturer Tesla built a new factory in Austin.
In May of 2020, Tesla CEO Elon Musk grew frustrated with the continual shuttering of his company’s main