The primary cause of businesses leaving California is the economy. The state is too expensive, too regulated, and too heavily taxed for both companies and their employees. As a result, these companies are relocating to states with lower costs, fewer regulations, lower taxes, and a better quality of life for their workers. This means that families can purchase homes at much lower prices.
Moreover, California is losing the talented creators of these businesses, who could have started additional transformative businesses in the state. This is a worrying statistic for California's future, as it indicates that companies are not investing in the state. According to a CEO survey, Texas was ranked as the best state for business and California as the worst out of 50 states. Over the past decade, businesses and individuals have been leaving California for other states, particularly Texas.
Some of today's small businesses will become tomorrow's blockbusters, and California is losing too many of these potential game changers. Texas has become the new California and California is becoming the new Rust Belt, losing businesses and people to states that offer more opportunities and better, more affordable lives. Governor Newsom is travelling around California to highlight the state's efforts to reopen schools and businesses as it faces the threat of retirement.