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California Lt. Gov. Gavin Newsom on what is needed to make the state more business friendly.
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And and CEO.
The natives are restless and -- fleeing California natives that is high taxes and regulation are causing some businesses to literally run from the statement.
Now lie as a California girl and furious with Adam Shapiro who has been in Palo Alto while -- beating up on my home state California.
Best location of the nation but I'm -- out of that you've got a superstar Californian with you hopefully it'd take my side on this one.
Well I think Gavin Newsom a lieutenant governor of California would take your side on this one -- -- and he joins us now live on Fox Business.
Let's get right to it out this -- that Rick Perry started calling California bad for business.
He got some clear writing I mean this is a very difficult state business round -- 62% of the business leaders surveyed say this is not an easy place to -- -- Why -- -- or two about business because -- seventeen on the California close to a thousand employees I'm not just weren't my lieutenant governor -- As a job crater in this -- I can tell you Rick Perry's just flat out wrong.
That said he's right about the aggressiveness or lack thereof of California terms of leaning -- in being aggressive.
We do not have an economic development plan in the state -- -- one point eight million people unemployed yet counties like Imperial County 25.
Point 5% unemployment.
We've got to -- up to that we -- down our trade and commerce agency in 2003.
We're now just beginning to patch that -- eleven.
Let's talk about issues like that for instance LA times recent editorial.
Criticizing the state on its efforts to help businesses which are already here -- the issue seems to -- how do you keep the people and help the businesses already here.
Because we have interviewed people from Fairfax county Virginia the governor of Arizona which are successfully.
Getting California businesses to expand there -- and expanding that are not expanding here.
-- we gotta start case in their joints -- very comes out of Saudi troops in California.
I hope it's a wake up call -- elected officials not just like myself.
But -- -- the now the state Democrats or Republicans we've got to be aggressive not just globally but your point these governors from all these states not just red states are being aggressive.
California needs to reconcile that we just put together a comprehensive economic development plan that does just what do you say not just recruitment.
Where you get a lot of attention not a lot of bang for the buck but retention strategies that we could support that organic.
Growth -- -- and our research to prepare for this coverage today we actually spoke with the chief economist at Trulia.
And what surprised us it Fox Business is that you have a net outflow from California of middle class.
And lower income individuals eventually that drives up the cost of labor in California and what we've been told by economists is the number one decision.
In whether to relocate -- business is the cost of labor is California because things are so expensive here from the individual standpoint setting itself up for future exodus.
But we're never gonna be the cheapest place to do business this is not a race to the bottom but we -- -- be the best place in India that added -- respect its cost but it's also quality it's human capital.
Not just the financial aspects we still more scientists more engineers more researchers more Nobel -- more venture capital and -- patents -- out this statement any state in the nation.
Whether -- to repair and these us they're not even in the margin there.
Close to California in that respect we saw the finest system of higher education on the planet public education.
As well as private universities cal tech and -- there's a lot of attributes we got to build on that but -- -- we got to acknowledge the regulatory environment.
We -- -- more competitors really start cost structures in California taxes not just income taxes -- capital gains OK and related tax the corporate.
As well sales taxes are high.
Paris -- competitors we gotta reform our tax them.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You and I both living -- -- -- -- and that's Cleveland as the best location.
In the nation okay now -- Ohio -- have not yet there.
They got a businesses from California to go back okay -- able to let tell definitely I'm -- MIA I stick up for this statement funny how.
Everybody complains about it and yet because job creation right there in the state of California recently correct out of my -- report that earlier.
Yet Texas Texas and California lead the nation in job creation and there's a statistically here you know 9000 jobs every year roughly leaving California that's how excited but what's actually happening and it's not good but what's actually happening those 9000 jobs.
It's -- businesses here either shrinking -- closing so that they the discussion about Rick -- getting headlines right there are states coming here to recruit business out.
But the discussion needs to be is the lieutenant governor we're saying is how does California make it easier for businesses already here to grow.
I completely with you I know I know I'm I'm right there but as as people complain under the palm trees sipping the -- it's from coffee -- is usually if it's just a horrible life thank you so much and thanks to Gavin Newsom the lieutenant governor --
