The new ford and gm battery plants are coming up in Tennessee/Kentucky instead of Michigan. There is big discussion in Michigan why those plants aren’t in Mi. Point is companies invest their money after looking at data which will help their businesses.
People nearby benefit out of it.
If the company executives only talked to their C suite skiing buddies based on great locations to ski or wake up to a great morning they would probably locate the factories in Aspen Colorado instead.
Here are the country’s five least expensive states for running a business, according to the study:
Texas
Oklahoma
Kentucky
Nevada
Georgia
Texas tops the list thanks to its tax policies and utilities costs. The state does tax businesses with annual revenues above $1,180,000 at a rate of 0.375%, but its corporate tax laws are considered to be among the friendliest to businesses in the country.
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The study also ranked the country’s five most expensive states for running a business:
California
New Jersey
Vermont
District of Columbia
Iowa
California workers have the nation’s ninth-highest average annual wage, at $47,290 per year. The state also easily has the country’s highest electricity prices, averaging 17.7 cents per kilowatt hour.
A February study by the UC Berkeley Haas School of Business found that customers of Pacific Gas and Electric Company (PG&E), California’s largest utility, pay nearly 80% more per kilowatt-hour than the national average, due to both wildfire-related costs and fixed costs associated with the state’s energy efficiency programs.
This is exactly the reason why California has become a laughing stock in the nation. California’s efficiency program make electricity expensive - isn’t efficiency about making things cheaper.
An economy driven by high value-add IP creation will by definition have higher inequality. Not that many people have the intelligence required to get into the CS programs at top-flight schools like Stanford, and then work at Google or Facebook. But almost everybody can graduate from high school and land a job making cars at a Tesla plant.
Once some one is able to get his hands around, it will take generations to fix California and to reverse what is being undone (assuming CA will remain salvageable).