Nestle USA is moving its headquarters from Glendale, California, a suburb just miles from downtown Los Angeles, to Rosslyn, Virginia, near Washington, D.C., and taking 1200 California jobs with it. They, like so many other companies, have found California to be an awful place to do business.
Until just two years ago, Nestle made its signature “Hot Pockets” brand turnovers in another LA suburb, Chatsworth. It wasn’t allowed to expand. Not only did Los Angeles, and California, refuse to help them find a way to grow, they made it impossible for them to do so.
Officials from Glendale insist that Nestle’s departure is no big deal, but rather an “opportunity.” Some opportunity. The $26 billion a year food conglomerate will leave a huge void for the working middle class in California.
Virgina has pulled out all the stops to get Nestle to come to them, offering tax incentives worth $16 million. Glendale, nor California, did anything to prevent them from leaving.
So what’s the real reason they left? Apart from having higher taxes, absurd housing costs and more regulations than any other state, California’s incomprehensible laws have turned the Golden State into the leftist choice for activist groups to file costly class action lawsuits and to launch anti-corporate PR campaigns against big, wealthy targets like Nestle.
Such corporate harassment is now routine in a state whose top officials and local politicians, virtually all of them far left Democrats, actively despise capitalism.
Nestle is only the latest company to understand that California has rolled up the welcome mat for job-creating businesses. Toyoto and the global giant Occidental Petroleum have already moved. According to a report by business relocation expert, Joseph Vranich, close to 10,000 companies have left in the past seven years.
It is no wonder there is “two Californias.” One wealthy, highly educated tech entrepreneurs, and the other struggling semi-employed people who are just scraping by. They are literally wiping out the middle class.
Meanwhile, the clueless officials of California will propose more environmental regulations, higher taxes and more spending as the answer.
Then California will put its hand out for MORE federal aid.