Tuesday, July 29, 2014

California dreaming is nuts in NSW

Yes, it's not only Americans who see the stupidity of CA.  Australians see it, too.
The NSW government must also be oblivious to the steady exodus of Californian businesses and jobs. Companies like Toyota, which after 60 years has moved its US headquarters to Texas, or Occidental Petroleum, which after 50 years has left for Houston. Chevron is next. Other stalwarts like ARCO, Getty Oil, Union Oil, Fluor, Calpine and Intel have all moved in search of a more business friendly environment and lower energy costs. Texas has been the main beneficiary. It has added 200,000 jobs in the energy sector in the past decade while California has barely managed 20,000. Texas leads California in the export of hi-tech goods.

“Big Oil” may be unwelcome in his brave new world, but California’s Governor Jerry Brown is not doing well at replacing jobs and investments lost to the Lone Star state. Brown promised to create 500,000 clean-energy jobs by the end of the decade, but this is now accepted as just a pipe dream.

Meanwhile, in the real world, California’s unemployment rate is 7.4 per cent (fourth highest in the country). It compares to 5.1 per cent for Texas and the national rate of 6.1 per cent. California’s relative joblessness lends weight to the UK Versa Economics study, which found that for every job created in the wind industry 3.7 jobs are lost elsewhere.

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