California has been voted most unfriendly state to do business in for more than 7 years. Between taxes and regulations we are chasing companies out of California at a rate of 5.5 a week.
While most companies are small, Charles Schwab, Occidental Petroleum and Toyota are among the names of the big companies that have announced their leaving California.
Examples of unintended consequences of liberal economic policy that defies the market economy can be found in:
- The minimum wage hike that is causing less job creation, more part time work and technological replacements of working citizens.
- Because of the minimum wage law, an additional $2.15 in wages and social security and taxes will be required of the business owner.
- An additional 13 cents will be required by the business owner for sick leave.
- Obamacare penalty is coming which will be the equivalent to $2.54/hour.
This doesn’t include other regulations passed by Governor Brown or that are being implemented by the Obama administration.
What is happening now is that more and more workers are working less than 30 hours a week in order to avoid Obamacare costs.
Then you have the minimum wage. According to the Bureau of Labor Statistics data, minimum wage hikes in different states have seen the biggest in year over year drop in average work-week. Most are among the leisure and hospitality industries.
Vermont’s average work week dropped 4.7% .
Connecticut dropped 4.1%.
Delaware dropped 3%.
Maryland dropped 3%.
We will expect to see the same in California.