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OPINION
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Nov. 13, 2005
Copyright © Las Vegas Review-Journal


EDITORIAL: Bye, bye Golden State

Just two days after California voters rejected a series of ballot measures intended to rein in a runaway state political class, Nissan Motor Co. made its announcement: It will relocate its North American headquarters from the Los Angeles suburb of Gardenia to Tennessee.

The Japanese automaker had been in Southern California for 47 years, but cheaper real estate and lower business taxes in Tennessee prompted the move, said company officials.

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Workers who choose to move will do so beginning next May or June.

Is this directly related to Tuesday's election, in which California voters turned down proposals to limit state spending, reform the redistricting process to ensure more competitive elections, and blunt the ability of public sector unions to hijack dues for political purposes?

Probably not. But the indirect connections are obvious.

Certainly, California's high tax climate is a direct result of a state government that refuses to curb its insatiable appetite for expansion. In addition, the promises made to government employee unions -- promises that will continue to be made, if Tuesday's vote is any indication -- will only hasten the state's need to capture more and more of the private sector's output.

High real estate prices? Why, that wouldn't have anything to do with burdensome regulatory environment governing land use, would it?

When you create conditions hostile to business, entrepreneurialism and economic growth, yet favorable to the advancement of big government -- and when you turn back any effort to implement even modest reforms -- the long-term results are easy to predict.

"This is a big loss," a Los Angeles County supervisor told the Los Angeles Times.

And it won't be the last.


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