Over the past couple of weeks, there have been more announcements of businesses and people fleeing California. Many cite the state’s socialist policies, anti-business atmosphere, high taxes, declining lifestyles, ridiculous lockdown and environmental regulations as the reasons for their departure.
Of course, it becomes a vicious cycle. With California’s eroding tax base combined with the Democrat government’s refusal to cut spending, tax increases are the only solution to make up for lost revenue. So, the cycle continues.
This past week, Oracle, a major developer of business software, announced it was moving its headquarters to Texas citing its employees quality of life as one of the reasons. It currently employs 135,000 people and it is not known how many will be directly impacted by the move.
The Register reports:
Oracle is shifting its California headquarters to the Lone Star State, saying change of scene will “improve our employees’ quality of life and quality of output.”
“Oracle is implementing a more flexible employee work location policy and has changed its Corporate Headquarters from Redwood City, California to Austin, Texas. We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work,” the company said in a regulatory filing.
Oracle was not the only major corporation to announce it was moving. At the beginning of December, HPE (Hewlett Packard Enterprise) announced it was moving its head office to Houston, Texas. In the last quarter, HPE reported $7.2B in revenues. READ: HPE to move HQ from Silicon Valley to Texas, says Lone Star State is ‘attractive’ for recruitment, retaining staff
As well, Ellon Musk, the CEO of Tesla, stated that he has already moved to Texas. The New York Post explains:
Silicon Valley ain’t booming like it used to be — and Elon Musk has gone to Texas.
The eccentric tech tycoon, who in recent months has squabbled with California officials over coronavirus restrictions at Tesla’s electric-car factory, confirmed that he recently moved to the Lone Star State — and he blames the move on California.
“If a team has been winning for too long, they do tend to get a little complacent, a little entitled and then they don’t win the championship anymore,” Musk said in an interview with the Wall Street Journal. “California has been winning for too long.”
The move comes less than six months after Tesla announced plans to build its next factory in the Austin area.
Of course, California is not the only Democrat state to see businesses fleeing. Elliot Management, a major $41 billion hedge fund, announced it was leaving New York for Florida. READ: Hedge Fund Magnate Is Moving His $41 Billion Firm From N.Y. to Florida