California is obligated by legal mandate to provide 1/3 of its electrical power by "green energy," including intermittent unreliable forms such as big wind and big solar, by the year 2020. Governor Brown of California wants to increase that requirement to 40% of California's electrical power via intermittent unreliables. But what will happen to California's already shaky economy as power consumers are forced to pay higher and higher rates, and as power brownouts and blackouts become more common -- as in a third world country?
Big wind and big solar -- the "intermittent unreliable" forms of energy generation -- are "feel-good" public pacifiers for coastal dwellers steeped in carbon hysteria. But are these well indoctrinated, pseudo-intellectual academically lobotomised and politically correct devotees of faux environmentalism willing to pay the ultimate costs of their lefty-Luddite neo-Malthusian ideologies? Probably not.
Here are the top 10 reasons why businesses are leaving California, as of May, 2012:
#1 – Excessively Adversarial:
For eight years in a row, Chief Executive magazine found California to be the worst state for business
. Editors said the state appears to have slipped deeper into the “ninth circle of business hell,” a reference to Dante’s Inferno. “The economy, which used to outperform the rest of the country, now substantially underperforms.” They’ve called California the “Venezuela of North America.”
#2 – Severe Existing Tax Treatment: The Tax Foundation in its 2012 State Business Tax Climate Index lists California at No. 48. CFO Magazine ranked California the worst state for tax treatment, as do many other rankings.
#3 – Future Tax Increases: Businesses will face higher income and sales taxes. The state has the largest budget deficit of any state. Employer costs will rise in 2013 as payroll taxes increase to bail out the Unemployment Insurance Fund (insolvent by $10 billion) and to cover excessive borrowing from the Disability Insurance Fund. Future bond borrowing costs will grow because California is S&P's lowest-rated U.S. state. (Bloomberg News, May 18, 2012: "Gov. Jerry Brown is seeking a 38,000 percent spending increase for a proposed high-speed rail system” despite a $15.7 billion deficit.)
#4 – Worst Regulatory Burden: California approved global warming cap-and-trade initiatives with 262 pages of new regulations and fees going into effect in early 2013 even though the state contributes less than 1 percent of the worlds’ green house gases. The draconian measures ignore Bain & Co.’s “regulatory hassle index” that found “California is far worse than any other state by a very significant margin.”
#5 – Unprecedented Energy Costs: California’s commercial electrical rates already average 50 percent higher than in the rest of the country. The new 2013-2018 “green energy” mandates will boost rates by a minimum of another 19 percent in many California localities, which will harm companies in every industry.
#6 – Dreadful Legal Treatment: The Civil Justice Association of California said the state ranks 44th in legal fairness to business. In 2010, the Institute for Legal Reform found Los Angeles’ courts were the second worst in the nation for legal fairness, after Chicago’s, while San Francisco’s courts were the sixth worst.
#7 – Most Expensive Locations: The Milken Institute found that California businesses pay 23% more than the national average in operating costs. McAfee avoids hiring in California and saves about 30 percent to 40 percent every time it hires outside of the state.
#8 – Oppressive Permitting Procedures: Obtaining permits from public agencies is extraordinarily expensive and time consuming because of confusing, extraneous and harsh requirements. Example: It can take 2 years to obtain permits just to build a restaurant in California while in other states it can be as little as 1-1/2 months.
#9 – Unfriendly Even to Small Businesses:
In 2012, Thumbtack.com
and the Kauffman Foundation gave California an “F” grade from small businesses for overall business unfriendliness, difficult regulations, tax code, licensing and health and safety. The finding echoes the Small Business & Entrepreneurship Council in Virginia 2011 conclusion that California ranked 49th overall in terms of business friendliness.
#10 – ‘Composite’ Findings Put California Last: Development Counselors International in a 2011 survey of executives found that ranked California as having the worst business climate of any state based on operating costs, taxes and deficits. That reinforced the “Pollina Corporate Top 10 Pro-Business States for 2010” study that placed the state at the bottom based on labor costs, taxes, litigation abuse, crime rates, demographics, school dropout rates and other factors.