Sun-Dried State

California Says Good Bye to Silicon Valley

By Darryl Weng

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Besides the high taxes, excessive regulations, massive infrastructure deficit, high government debt, high unemployment rate, forest fires, and a booming population of both political extremists and illegal immigrants, California could possibly be a decent place to live. After all, Silicon Valley, America’s premier innovation lab, resides in California. However, Silicon Valley appears to be having a drought, which looks to worsen. Recent news of Elon Musk moving Tesla’s headquarters from California to Texas is neither the first nor last Californian company to relocate. With companies like Digital Realty and Oracle already announcing such a decision, CEOs of tech companies headquartered at Silicon Valley may follow in suit. It seems like California might have to rethink its economic policies before Silicon Valley becomes deserted.

Given the current political atmosphere in California, the policies are bound to be pushed to the extreme. Even Gavin Newsom himself would be considered a moderate in the state, since Newsom has blocked quite a few extreme policies that could have quickened the pace of the utter destruction of California’s economy. In other words, Newsom is California’s only hope to prevent Silicon Valley’s fall. So far, he has failed.

However, if Newsom were to scale back on excessive regulations, reduce the tax hike, and somehow prevent California’s debt from drastically increasing without Leftists knocking on his door, he could succeed. More simply, it’s impossible. Not to be an anti-optimist or anything, but California’s economic situation is so hazardous that only the U.S national government could help fix it, which is why many Californian politicians wish for the U.S national government to pay for all of California’s debt. And, of course, we all know that is never going to happen. So, allow us to examine how horrid California’s economic situation is more precisely.

According to the U.S Debt Clock, California’s debt is around $592 billion, and employment is around 7.3 million. In other words, California’s government is stuck in a cycle of extracting as much money from its residents as possible to reduce debt, but the sheer unemployment numbers simply prevent it from happening. Due to the federal welfare system and aid from California’s welfare program, the unemployed are given both unemployment benefits and welfare aid. To make matters worse, the unemployment numbers do not account for many illegal immigrants who do not have access to jobs. As a result, no matter how much regulations and taxes California forces upon its inhabitants, the size of the debt and unemployment numbers seem to only increase. If a pro-growth economic policy were to be enacted, there wouldn’t be much of an effect.

Thus, in my humble opinion, let California rot. First, it would force Silicon Valley companies to relocate and create economic boons for states that would utilize it more responsibly than California. Second, residents and employees of such companies would also relocate, as a result. Third, California would be in such a dreadful situation that perhaps an uprising may at least invoke more moderate policies.

State of California Debt Clock. www.usdebtclock.org/state-debt-clocks/state-of-california-debt-clock.html. Accessed 10 Oct. 2021.