California Ranks Second Worst in U.S. on Economic Freedom Index

The old and confused Guv Brown and his Sacramento Democrat buddies have worked hard to assure for the second year in a row, California is the second worst State for economic freedom in the nation.  To be this “successful” you need to raise taxes, create a minimum wage that stops business from hiring humans, and instead buy computers and robots.  It is possible that in a few years cap and trade will transfer $8 billion from families and businesses to government—think government is really willing to save the planet?  If so, why do they allow conditions to create more intense and larger forest fires?

““California’s lack of economic freedom helped motivate more than 10,000 businesses to leave the Golden State, reduce operations, or expand elsewhere during the past seven years,” said Dr. Lawrence J. McQuillan, Senior Fellow and Director of the Independent Institute’s Center on Entrepreneurial Innovation. Census data show that 3.5 million people left California for greener pastures from 2010 to 2015.

While California ranks second worst in economic freedom (only New York was lower), New Hampshire ranked highest for the third year in a row, scoring 8.3 out of 10 in measures of government spending, taxation, and labor market restrictions based on 2015 data, the most recent year available. Rounding out the top five freest states are Florida and Texas (tied for 2nd), South Dakota (4th), and Tennessee (5th).

What do Texas, Tennessee, South Dakota and Florida have in common—those States do not force workers to pay blackmail to unions—and they have no income tax.  Freedom creates economic growth.  In California, outside of the Silicon Valley, the State is in a recession.

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California Ranks Second Worst in U.S. on Economic Freedom Index
High Taxes, Overregulation Causing Exodus of Workers and Employers to Other States

Independent Institute,  12/13/17

OAKLAND—As Congress considers overhauling the U.S. tax code in the hope of easing the financial burden on households and making the nation more competitive globally, California’s policymakers have enacted policies more harmful to economic freedom and opportunity than those of almost any other state, according to the 2017 Economic Freedom of North America report, released today by the Independent Institute in conjunction with Canada’s Fraser Institute.

Not only does California rank 49th out of all 50 U.S. states, but its burdensome combination of high taxes and regulatory overreach is so toxic for economic opportunity that it is causing a major out-migration of both workers and enterprises to other states.

“California’s lack of economic freedom helped motivate more than 10,000 businesses to leave the Golden State, reduce operations, or expand elsewhere during the past seven years,” said Dr. Lawrence J. McQuillan, Senior Fellow and Director of the Independent Institute’s Center on Entrepreneurial Innovation. Census data show that 3.5 million people left California for greener pastures from 2010 to 2015.

While California ranks second worst in economic freedom (only New York was lower), New Hampshire ranked highest for the third year in a row, scoring 8.3 out of 10 in measures of government spending, taxation, and labor market restrictions based on 2015 data, the most recent year available. Rounding out the top five freest states are Florida and Texas (tied for 2nd), South Dakota (4th), and Tennessee (5th).

“The freest economies operate with comparatively less government interference, relying more on personal choice and markets to decide what’s produced, how it’s produced, and how much is produced,” said Fred McMahon, who co-authored the report with economists Dean Stansel of Southern Methodist University and José Torra of the Mexico City–based Caminos de la Liberta.

“The 2017 report shows the public, news media, and policymakers in Sacramento what changes need to be made to make California competitive in the future,” said David J. Theroux, Founder and President of Independent.

The Independent Institute is a non-profit, research and educational organization that promotes the power of independent thinking to boldly advance peaceful, prosperous, and free societies grounded in a commitment to human worth and dignity.

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.