Hi Nextrade, RE: "Employer-provided health care, family leave and vacation are mandated, as are many other ill-advised policies. People are wondering why businesses are fleeing California."
Wages are the issue. Not health care. Not the FLA.
Wages are the largest cost component for many businesses.
( Family leave doesn't cost more, and in fact, can save money if a business operates in a modern way. This guy sounds either outdated or sexist or clueless to newer hard data. )
But back to the issue - guess what makes employees want large wages? Their biggest cost is real estate. To attract labor, the land has to be affordable - because if it isn't affordable, then companies have to pay more to keep or attract talent here.
So, the biggest pricing pressure on upward wages is actually the cost of real estate.
In conclusion, businesses flee California due to the high cost of non-commercial real estate that puts upward pressure on wages.
So, lower the cost of real estate and increase the number of entry-level housing units here, and then wage pressures get reduced. And then jobs would even stay too.
The problem for businesses with Calif is actually the high-cost of non-commercial real estate. Serious.
So, folks, when *is* real estate going to ever flatten out ? Why is it taking so long?
Regards,
Amy J |
