California’s economic recovery might be a little over stated, at least according to the people who actually create jobs.
Chief Executive Magazine has released its annual Best and Worst States for Business Survey and California ranked last – for the 11th year in a row. In the annual survey, completed by 511 CEOs across the United States, states are measured across three key categories to achieve their overall ranking: taxes and regulations, quality of the workforce and living environment, which includes things like, quality of education, cost of living, affordable housing, social amenities and crime rates.
California again placed 50th on the list, joining New York, Illinois, New Jersey and Massachusetts at the bottom. Texas remained in the number one slot followed by Florida, North Carolina, Tennessee and Georgia.
One CEO was quoted as saying, “the good states ask what they can do for you; the bad states ask what they can get from you.” Another CEO was quoted, “California and Oregon are essentially anti-business, whereas Texas and Tennessee do everything possible comfortable and more successful.”
Litigation and a state’s legal climate are one of the things weighing on the minds of CEOs as they consider states in which to do business and create jobs. California continues to be a “Judicial Hellhole,” and is tepid at best in its willingness to stop lawsuit abuse. Businesses will be discouraged from expanding and creating jobs in a state in which the lawsuit system mainly serves the interests of lawyers rather than ordinary people.
A single abusive lawsuit can cost a business tremendously. California’s leaders need to make this connection and make it a priority to enact meaningful reforms to our lawsuit system.
