California is known as a haven for liberal policies, being a very anti-business, anti-capitalist place. This week, conglomerate Nestle, will be moving its headquarters from Glendale, California to Rosslyn, Virginia.
As the company moved thousands of jobs away from Californians, this will no doubt affect their local economy. While Nestle cites other reasons on their website, it is no secret that California over-taxes and over-regulates, making it difficult for many businesses to stay there.
According to investors.com, Virginia pulled out many stops for Nestle to bring its business over there, including $16 million in tax incentives. While Glendale officials said the move was “no big deal,” claiming they had other companies that want to do business there.
Part of the problem is California’s laws that allow too many frivolous lawsuits by activists and demonstrators, Investors.com says, “In recent years, Nestle has faced two such activist-led actions, both spurious: One involves allegations that Nestle improperly documented its anti-slave-labor policies. Not that it employed slave labor, it just didn’t document it online.”
Investors.com further reports:
Such corporate harassment is now routine in a state whose top officials and local politicians — virtually all of them far-left progressive Democrats — actively despise capitalism.
Until just two years ago, Nestle made its signature “Hot Pockets” brand turnovers in another L.A. suburb, Chatsworth. But it couldn’t expand. So it moved the operations and hundreds of jobs to Kentucky. If anyone in Los Angeles objected or tried to help them find a way to grow, we’re not aware of it.
But Nestle is only the latest to understand that California has rolled up the welcome mat for job-creating businesses that actually make things.
In recent years, Toyota shifted its U.S. headquarters and thousands of jobs from Torrance, Calif. — another L.A. suburb — to Dallas, while global oil giant Occidental Petroleum moved its corporate HQ from Los Angeles to Houston.
Sadly, such tales are common. But because many of the companies that skedaddle are much smaller than Nestle, Toyota or OxyPete, they don’t attract as much notice.
According to a report by business relocation expert Joseph Vranich, from 2008 through 2015, at least 1,687 California companies pulled up stakes and moved elsewhere. And those are only the reported ones, Vranich says.
He cites a rule of thumb among business site-selection experts that five companies leave for each one that actually gets reported in the press. So it’s probable that as many as 10,000 companies have left in recent years.