Mass Exodus of Manufacturing from California

Nestle USA has announced the company is moving operations from Glendale, California to Rosslyn, VA. The the multi-billion dollar a year food giant has cited wanting to be closer to it’s core customer base as a reason for the change. The move will cost Californians 1200 jobs.

Investor’s Business Daily theorizes the move has more to do with California’s history of over-regulation, exorbitant taxation, and hyper-regulation.

Glendale’s response, Gee, it is really no big deal and tout the loss as an opportunity to draw in more technology based jobs.

“We just completed a study two weeks ago, which shows that we have more than 1,000 businesses in Glendale that are tech-focused,” she said. “We’d like to see some more co-working space that would cater to this burgeoning technology industry that has organically grown here.”

While California has had growth in technology, there has a been a consistent decline in manufacturing, followed by pharmaceuticals, biotech, and other health-related companies making the exodus.

That is the tip of the proverbial iceberg. While large corporations leaving are public knowledge, it is impossible to know how many smaller businesses have fled California.

The report, “California Business Departures: An Eight-Year Review 2008-2015,” reveals that at least 1,687 California disinvestment events occurred during that period, a count that reflects only those that became public knowledge. And for every disinvestment that became known — either through media reports, company announcements or company reports to the U.S. Department of Labor, the Securities and Exchange Commission or the California Employment Development Department — another five occurred.”

California’s response? This exodus of manufacturing jobs is fine because it takes the poor people with them. 

The Midwest is happy to take Californian jobs and any hard working middle class employees that come with it.

California is setting itself up for an unsustainable future. Focusing on one industry, while ignoring the blue collar jobs that support the middle class will lead to a gross disparity between rich and poor with a non-existent middle class.

Exorbitant taxes and regulations will eventually drive out not just manufacturing, but employees, even for the prized tech industry.

The liberal progressive policies are rapidly making the state unlivable.

What do you think? Is it time for progressive policies to change? Let us know what your thoughts are in the comments section below.

H/T Daily News

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