Wednesday, May 2, 2012

CEOs Rate CA Worst...Again

For eight years Chief Executive magazine has been conducting a survey of CEOs asking which are the best and worst states in which to do business. Again this year poor sad California ranked number 50.

Yep, that's right. In the opinion of the 650 business leaders who responded to the survey, all forty-nine of the other states are better places to do business. Texas again ranked number one and the other states in the top five include Florida, North Carolina, Tennessee, and Indiana.
It may be no accident that most of the states in the top 20 are also right-to-work states, as labor force flexibility is highly sought after when a business seeks a location. Several economists, most notably Ohio State’s Richard Vedder and Harvard’s Robert Barro, have found that the economies in R-to-W areas grow faster than other states, have higher employment and attract more inward migration.
One CEO remarked that if it weren't for the CA weather there'd be no reason to stay. Another suggested California should secede as doing business there is like working in a foreign country. The Los Angeles Times reported this story honestly, it must have given them heartburn to print it.

If you would understand the roots of California's problems, a good place to begin is these lines from the Chief Executive story:
Its unemployment rate, at 10.9 percent, is higher than every other state except Nevada and Rhode Island. With 12 percent of America’s population, California has one-third of the nation’s welfare recipients.
Question: why on earth would California support nearly three times its share of the nation's welfare population? Answer: too-generous benefits and if you're going to live on welfare, why not live where the weather is perfect?