LAST EDITED ON Apr-26-17 AT 10:40PM (MST)[p]For your reading pleasure. I did not bother to copy the article from the Mercury newspaper about layoffs happening.
RELH
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FW that sentence about Texas now surpassing CA. in employment is just for you and your liberal B.S.
I will over look Dude's comment as we all know he is a moron of the first order.
RELH
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Is Silicon Valley Facing the Phony California Recovery? Cisco FIRING 14,000 Workers
August 18, 2016 By Stephen Frank Leave a Comment
I love the spin from the government and the media on the 14,000 people CISCO is about to fire. This is the largest termination ?class? in their history. Yet some are feeling ?relief? since they expected many more to be fired. Add to this the July almost 10% decline is State tax revenues for income, corporate and sales tax, the almost on trillion in unfunded CalPERS liabilities and the over $500 billion tax increases and bonds (including interest) on the November ballot.
Has California already gone over the edge? Is CISCO, along with the massive decline in shipping from the Port of Long Beach the signals the recession Guv Brown said was coming, is here?
?Every summer from 2011 through 2014, with icy routine, when Cisco was closing out its fiscal year, it revealed mass job cuts. In July 2011: 6,500 layoffs. In July 2012: 1,300 layoffs. In August 2013: 4,000 layoffs. In August 2014: 6,000 layoffs. A veritable layoff machine.
In the summer last year, with the new guy, Chuck Robbins, getting his feet on the ground, it skipped the layoffs. But the layoffs now being planned are a doozie.
The aging Silicon Valley icon will lay off between 9,000 and 14,000 employees globally, ?multiple sources close to the company? told CRN. If it cuts 14,000 people, it would be the largest single layoff announcement it its history. They would amount to nearly 20% of its 73,000 employees.?
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Nestl? USA, ?the maker of H?agen-Dazs, Baby Ruth, Lean Cuisine, and dozens of other mass brands,? is moving its U.S. headquarters from California to Virginia. It is among many businesses that have left California in recent years. In 2010, Northrop Grumman Corp. moved its headquarters out of California, leaving the state that gave birth to the aerospace industry without a single major military contractor based there. Last Spring, the parent company of Carl?s Jr., founded in Anaheim, California, 60 years ago, relocated its headquarters to Nashville, Tennessee, where there is no state income tax.
California?s ?skyrocketing? housing costs and high tax rates have prompted an ?exodus of residents,? reported the San Jose Mercury News in June 2016. ?During the 12 months ending June 30, the number of people leaving California for another state exceeded by 61,100 the number who moved here from elsewhere in the U.S., according to state Finance Department statistics. ?They are tired of the expense of living here. They are tired of the state of California and the endless taxes here,? said Scott McElfresh, a certified moving consultant. ?People are getting soaked every time they turn around.??
Virginia, where Nestl? and Northrop Grumman moved, has lower corporate and individual tax rates than California, and much less onerous labor laws. In California, cities adopt ordinances meddling in private sector hiring (such as ban-the-box ordinances in Los Angeles and San Francisco). By contrast, Virginia has a Dillon rule that prevents cities and counties from regulating the employment practices of private businesses. That keeps them from dictating wage levels, or adding new protected classes of employees at businesses? expense.
The exodus of businesses undercuts claims by Obama administration officials like Julian Castro, who asserted at the 2016 Texas Democratic Convention that ?California is kicking our butt, creating more jobs and more economic growth than Texas.? Over the last decade, California has experienced job growth of about 8 percent. By contrast, Texas, despite suffering from declining oil prices, saw job gains of about 19 percent over the same period. Castro criticized Texas?s economic performance, saying it was poor because the Texas Republican party ?doesn't believe in government.? But Texas?s performance looks pretty good compared to California, where the GOP holds neither the governor?s mansion nor even a third of the seats in the state legislature. Texas now has a higher rate of employment than California, something that was not true before 1990.
If it did not have so much burdensome regulation and taxes, California would be growing much faster than Texas, given California?s immense natural advantages (such as a climate which is much more pleasant than Texas?s, and economic engines such as Silicon Valley that came into being before California was taken over by left-wing politicians). Some multi-state businesses have closed their facilities in California, despite having plenty of customers, after experiencing pointless harassment due to California?s oppressive regulatory regime, or the threat of meritless lawsuits.
For businesses, the worst is yet to come. California is increasing its minimum wage over the next several years to $15 per hour. The American Action Forum predicts the increase will ultimately cost California 700,000 jobs. An economist at Moody?s calculated that 31,000 to 160,000 California manufacturing jobs will be lost.
California taxes may rise further, to deal with a rising state budget deficit over the next decade. The deficit is rising in part due to California?s unusually high state welfare spending which grew about twice as fast in California in 2016 as in the U.S. as a whole. California also spends its transportation dollars very poorly, and it is wasting billions on a high-speed rail boondoggle that few people will ride. As Reason magazine notes, federal transportation officials are warning that California?s misnamed ?bullet train? is a disaster in the making: They believe California is drastically understating the costs of its massive high-speed rail project. Just the first leg of this $70 billion project could cost billions more than budgeted. And the project is already at least seven years behind schedule.
Hans Bader practices law in Washington, D.C. After studying economics and history at the University of Virginia and law at Harvard, he practiced civil-rights, international-trade, and constitutional law.
