Examining Economic Migration Trends: Jonathan Williams on Voice of Reason
When you see a company like Chevron leave, it has devastating effects on California's state and local budgets due to the loss of revenue from both the company and its executives.
ALEC Executive Vice President of Policy and Chief Economist Jonathan Williams spoke with host Andy Hooser on Voice of Reason about the latest economic migration trends, with businesses moving from high-tax states like California to more business-friendly states like Texas and Florida. As businesses and individuals continue to migrate from high-tax states like California and New York to more economically friendly states such as Texas and Florida, the nation is witnessing significant shifts in both demographics and economic opportunities. This trend is not just coincidental, but rather a response to varying economic policies across states. Many companies, such as Chevron and Tesla, have relocated to Texas, highlighting the stark contrast between states with lower taxes and more business-friendly environments versus those with heavy regulatory burdens.
When major corporations like Chevron move their headquarters from states like California to Texas, Williams explained, the ripple effect is immense.
This is a major blow for California, yet another one. It should be pretty straightforward to identify what’s causing this and what has changed in California over the last 20 or 30 years. Once seen as a true land of opportunity, the state had been growing every decade. Now, however, it’s staring down the reality that by the end of this decade, California could lose up to five U.S. House districts due to population loss to other states. The move by Chevron is just another example of this ongoing trend.
Williams noted that the departure of high-paying jobs also impacts secondary industries, such as service providers and local suppliers, leading to further economic decline in affected regions. With a shrinking tax base and fewer opportunities, states like California face long-term challenges, potentially deepening their budget deficits.
Williams also discussed the economic implications of potential government policies, such as Vice President Kamala Harris’s proposal for price controls on food and healthcare. He expressed concern that such measures, while intended to curb inflation, could further harm businesses like grocery stores, which operate on thin margins. If implemented, these policies could exacerbate existing economic problems, creating food deserts and forcing more businesses to close.