Too Big for California

One has to wonder how many times this story is repeated in California and other states that mandate generous benefits for employees.

Ray Comfort said "Up until about the year 2000, Living Waters Publications consisted of my wife, Sue, myself, Daniel and Jacob (our two sons) working out of our garage. About that time, we moved into a much-needed and larger building. We soon outgrew that, and last year we moved into another premises that was five times larger, with a workforce also fives [sic] times as large.

"The new building was perfect . . . for about a year. Then there was talk about having to make another move. That made me nervous. With our present growth rate, it was unrealistic to think of purchasing anything less than a building three times the size of what we have. In California, that would cost upward of ten million dollars, and because of California's Worker's Compensation laws (we pay $6,000 a month, just in case one of the computers attacks a worker) and other financial pressures, it was unthinkable."

They pay $6,000 per month for 20 employees. The "other financial pressures" are likely taxes and mandated benefits.

The legislature can mandate all manner of benefits but they can't keep a successful business from leaving for a more favorable situation. What is impossible to quantify is the number of individuals who decided to limit growth or not start a business to begin with. The really amazing reaction to this kind of flight by business is legislator's will then offer incentives to attract business from outside. How mush simpler it would be to just start with and maintain reasonable regulations and taxes so business would not want to leave in the first place.





politics, Economics