Valuetainment - September 06, 2023


California Exodus Getting Worse： How Politicians Destroyed a Once Great State


Episode Stats

Length

20 minutes

Words per Minute

205.43138

Word Count

4,274

Sentence Count

378


Summary


Transcript

00:00:00.000 As great of a state California is, why did California lose nearly 700,000 people the last
00:00:04.540 three, four years? And on top of that, 352 businesses left California, 11 of them in the
00:00:09.440 Fortune 1000, 61 of the businesses, over 100 employees. Then we dug up some numbers here.
00:00:14.680 We're like, what side is California voting? We noticed the last seven presidential elections,
00:00:19.360 they voted blue. But prior to that, six consecutive presidential election, California voted red.
00:00:27.380 That's six in a row. So then we broke it down by counties. We went and looked at different
00:00:31.220 counties, LA County, San Diego County, Orange County, Riverside County, San Bernardino County
00:00:35.820 to see if all of these states are blue. Are they on the left? One of the counties, you're
00:00:40.400 not going to believe which county this is, 19 out of the last 22 presidential elections
00:00:46.120 since 1936, they voted red. They voted Republican. What? How's that possible? Then you break it
00:00:51.620 down and you see that cars, they're saying, don't lock up the car anymore. Leave the windows
00:00:55.900 down because they're breaking into the window. If they're going to steal it, let them steal
00:00:58.460 it. You know, people are saying, don't drive to work because you may get robbed. There's
00:01:01.780 drugs on the streets in the state of, you know, in San Francisco. Regulation we looked at, ranking
00:01:06.780 for the best small business we looked at. So many different data we're going to go and look
00:01:11.020 into right now. But there's a reason why people are leaving California. This is not accidental.
00:01:17.040 We're going to get into it today.
00:01:27.360 Okay, so let's get right into it. If you get value out of this video, give it a thumbs up
00:01:30.240 and subscribe to the channel. California, beautiful state, incredible weather, lots of great things
00:01:34.640 to do there. But they're getting their asses handed to them. First of all, I'm going to
00:01:38.300 go into politics here in a minute, but let me first kind of give you where they rank business-wise.
00:01:41.480 So here's an article from chiefexecutive.net. They rank the best and worst states for business.
00:01:46.580 If you look at the list based on different golf scores they have, at the top, in 2023,
00:01:52.160 it's Texas, then Florida, Tennessee, North Carolina, Arizona, Indiana, Georgia, South
00:01:55.680 Carolina, then Nevada, Utah. At the bottom, top 50 states. You ready? Number 50, California,
00:02:01.960 49, New York, then Illinois, Jersey, Oregon, Washington, Massachusetts, Hawaii, Connecticut,
00:02:06.880 Alaska, Minnesota. Newsom always brags about where his GDP is. I look at us. We're the fourth
00:02:11.320 or the fifth biggest economy in the world. There's a reason why we make so much revenues.
00:02:14.700 That could be true, but the way to look at it is the following. Newsom became a governor,
00:02:20.020 what, three, four years ago after he took over Jerry Brown, I believe. So imagine a company
00:02:24.300 you built. Steve Jobs builds the company. Then it's Tim Cook, let's just say, okay? So different
00:02:28.620 CEOs come in. And this company is now a $3 trillion company. And then you show up. Your name is Newsom.
00:02:34.180 And all of a sudden, the company loses 700,000 customers. And the top line revenue drops a little
00:02:40.980 bit. And you're at the bottom of the list for companies to work for. That doesn't mean you're
00:02:45.160 not a big company. You could still be a multi-trillion dollar company, but you've hurt the company.
00:02:49.540 So Newsom, as a CEO, has destroyed that state the last few years purely based on data. So let's look
00:02:55.600 at some areas on what caused this thing to happen. So look, I've been in the financial industry since
00:03:00.180 9-11, the day before 9-11. And I've owned stocks, bonds, mutual funds, real estate, crypto, gold,
00:03:05.460 you name it, I've owned it. But the one thing that's a very important part of my portfolio
00:03:08.920 all these years is gold. I love having a percentage of my net worth in gold that I have access to in
00:03:16.260 case of many different things. A few facts you need to know about gold. Number one, the gold market cap
00:03:21.460 is $11.8 trillion. Since 2000, the compound annual growth rate for gold has been 9.24%. And during times
00:03:30.540 of high inflation, 3% plus has been 15.35%. Now, those are just some numbers for you, but there's
00:03:37.340 some other benefits to add gold to your portfolio. Number one, hedge against inflation. Number two,
00:03:42.220 results showed recently that 93% of central banks are working on a CBDC. So this means what?
00:03:48.220 That could be a manipulated currency that they own. If you own gold, it's a non-duplicatable asset.
00:03:53.660 You're now hedging against CBDC taking place. Number three, a potential cyber threat. If it happens,
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00:04:40.660 in the description or call 866-939-6984. Again, 866-939-6984. On this list here of regulations,
00:04:50.600 which states have the most regulated states in America? By number of restrictions, 2022.
00:04:54.800 Guess what state is at the top with the most regulations for businesses? You ready? California,
00:04:59.480 403,000. Number two is New York, 298. Three is Jersey, 286. Illinois is fourth, 279. And then
00:05:07.800 it is Texas, 273. But California is an overly regulated state. And by the way, when you look at
00:05:13.520 the top industries, most regulated in California, ready? Number one, insurance. What industry think
00:05:19.500 I'm a part of the last 20-something years? Insurance. Then it's petroleum. Then it's coal products
00:05:24.100 and manufacturing. And then it's paper manufacturing. These industries are heavily
00:05:28.660 regulated. You want to know what the least regulated industries are? Let me tell you the least regulated
00:05:32.760 industries. Social assistance. Surprising. Like welfare, entitlement programs. Number two,
00:05:38.580 waste management. Then it's remediation and educational services. Low regulation. The other guys,
00:05:44.240 heavily regulated. Okay, Pat, we get your point. Very much a regulated state, but what's the big deal
00:05:49.260 with that? What else can you tell us outside of that? No problem. Let me tell you what happened
00:05:52.600 here with a couple of companies. You ever heard of Geico? You know, that gecko that walks around and
00:05:56.220 it does these funny commercials. And what Geico decided to do? They just shut down their office
00:06:00.360 in California. Not one. They just closed all their offices. We don't want to do business in California.
00:06:04.000 What do you mean? We're out. We're leaving California. Geico left California? Yes. Who else?
00:06:08.820 Progressive stopped advertising in California. State Farm is no longer taking calls for quotes in
00:06:13.060 California. You need to go to an office. Insurance professionals from California say most companies are not
00:06:17.220 extremely reluctant to underwrite new policies, specifically on the auto insurance side.
00:06:22.100 California has a government-controlled insurance system that distorts the free market. So now,
00:06:26.600 we've talked a few different things here, but you may say, Pat, I still get it, but, you know,
00:06:31.360 I still think it's the greatest, you know, place to be. I'm going to give you another data here.
00:06:34.960 The last three years, 2019, 21, 2020, 21, 22. Okay. The top 10 highest tax states in America,
00:06:44.920 California, New York, Illinois, top 10 highest tax states in America lost $391 billion of AGI.
00:06:56.300 That's adjusted gross income. They lost 391. You want to know what the crazy status here?
00:07:02.180 The bottom 10 states like Florida, Texas, Tennessee, guess what they picked up in those three years?
00:07:08.540 You ready? Guess the number. You're going to get it right. The same exact amount. Let me say this
00:07:13.100 again. The top 10 highest tax states lost 391 of AGI. The bottom 10 gained 391 billion in AGI. What
00:07:22.000 does that tell you? These guys simply took their block of business and they went here. That's kind
00:07:26.580 of like you working on Morgan Stanley Dean with you. You got a billion dollars of money under
00:07:29.700 management. You took your billion and your hundred clients and you went where? Goldman Sachs. That's
00:07:34.340 what happened. They left the top 10 states. America is saying, we don't want to be in states with
00:07:40.100 high regulation and high taxes. We're going to go elsewhere. And guess what Florida, Texas, Tennessee
00:07:44.120 and other places said, come on down. We'll take you. Texas took Rogan. Texas took Musk. Texas took
00:07:49.320 Toyota. Florida took a bunch of them. Tennessee took a bunch of them. No problem. And California
00:07:53.420 kept saying, it doesn't matter. It doesn't matter. It doesn't matter. We're okay. We're California.
00:07:56.820 We're New York. We're this. And this keeps happening over and over and over again. So let me give you
00:08:01.220 some specific stats here. You know, when I said earlier, they lost over 61 companies with over a hundred
00:08:05.640 employees. You know, those companies that we said, 61 companies with a hundred plus employees. Where
00:08:09.120 did they go? 27 of them. You know where they went? Texas. 44%. Arizona got 8% of them. Then Colorado,
00:08:16.620 then Carolina, then Florida, then Tennessee. They went from here all the way down to Florida. Easy
00:08:22.120 part is what? To just go to Texas, which they did 27 of the 61 with a hundred plus employees moved
00:08:27.800 their companies to Texas. All right. So let's go a little bit deeper. California did something. It's
00:08:32.040 been, it's been happening for a while. They've been trying to do this, the whole thing with Uber laws.
00:08:35.080 Well, you, these are independent contractors, but we should treat them like employees. Uber
00:08:38.040 should treat them as full-time agents. We try to do this with some salespeople that it's
00:08:41.460 called the assembly bill five legislation was signed into law by governor Newsom in
00:08:45.860 September of 2019 requiring companies that hire independent contractors to reclassify
00:08:50.640 them as employees. Can you imagine Uber driver drives five hours a week? They want them to
00:08:54.800 be an employee getting benefits from a company like Uber. Uber can't afford to do this. So
00:08:59.020 these regulations, when they did, guess who started complaining? The independent contractors
00:09:02.560 are like, don't do this. I want my job. I don't want Uber to leave the state. I don't
00:09:06.600 want these insurance companies to leave the state. I want to keep selling as a part-time
00:09:09.840 individual working for Uber or Lyft. So California's law got the independent contractors who vote
00:09:15.600 Democrats to say, listen, leave this one alone. I like working 10 hours a week for Uber. I don't
00:09:21.920 want them to leave the state. So they kind of backed off and they're like, whoa, we're losing
00:09:25.980 our own people that don't like this idea. What about if we kind of create this ABC worker is free
00:09:30.960 from control and direction and the performance of services and the workers performing work
00:09:34.520 outside of the usual course of the business of the hiring company and the workers customarily
00:09:38.380 engage in an independently established trade occupational business? They kind of are like
00:09:42.420 trying to say, well, we're controlling it, but we're not because these people don't like it.
00:09:46.260 Leave them alone. They want to be kind of left alone as an independent contractor. That's one
00:09:49.820 policy that made businesses to say, if you're doing it now, odds are you're eventually going to
00:09:54.980 find a way to enforce this. I better leave now before you do something with it. You ready
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00:11:00.060 Trucking industry. I got a lot of friends in California, trucking industry. Ready for what
00:11:03.360 they just announced? Effective! January 1st, 2024. Any trucks registered on or after January 1st, 2024
00:11:11.680 must be zero emissions. Zero emissions? That's in four months. California's truck ban requires that
00:11:17.340 about 55% of delivery vans and small trucks, 75% of buses and larger trucks, and 40% of tractor
00:11:23.340 trailers and other big rigs be fully electric. By 2035, by 2045, gas and diesel trucks will be
00:11:30.980 outright banned from being sold in California. Absolutely banned. Can you imagine like the state
00:11:38.460 says, absolutely banned in the state of California? Now, you may say, well, Pat, that's a good idea,
00:11:42.680 climate change. I'm in LA. I see how dark it is. This is a good thing. The sky is dark. The clouds
00:11:46.340 are dark. Isn't this a good thing? Are you anti-making the climate cleaner? Do you know what
00:11:51.720 it takes to build electric cars and how much of the climate it hurts to build? Have you looked at
00:11:56.960 what they do to the people that you are against them working them like sweatshops? Have you looked
00:12:02.440 into that stuff? So that's already a lot of work to force for us to go in this direction.
00:12:07.080 It's going to be very problematic in the state of California, but fine. Fine. No problem. Let's
00:12:11.660 go to the next one. Gas-powered tool ban. AB 1346 will require the state to adopt regulations around
00:12:18.140 these gas-powered tools by July 1st of 2022 and ban their sale by the start date of 2024. Moving
00:12:24.280 forward, you can't buy a gas-powered tool ban in 2024? How crazy is that? That's California for you.
00:12:30.420 Next one is wild. So I had a guy that came to me. We're consulting for this client that runs 10
00:12:34.280 restaurants nationwide. He does around $40 million a year, and he's asking, what do I do in the state
00:12:38.420 of California? So let me tell you what they're doing to restaurant owners and restaurant workers
00:12:42.340 that's costing these guys a lot of money. So fun fact. California will establish a 10-member fast
00:12:47.120 food sector council tasked with establishing standards on minimum wages, maximum working
00:12:50.880 hours, training, and other working conditions applicable to industry workers. The council would
00:12:55.220 raise the minimum wage to $22 an hour in 2023 and up to 3.5% annually after that. Special
00:13:02.140 authority specifically authorizes fast food restaurant workers to bring causes of action
00:13:06.460 for discharge, discrimination, or retaliation for exercising rights established by the Fast
00:13:11.580 Recovery Act. So guess what that does? If you're running a fast food business, you're like, oh my
00:13:15.340 God, what do I do? Okay, so if I pay them $22 an hour, that means that going from a minimum wage of
00:13:19.900 $7.20 or maybe $10 an hour to now $22, so whatever I was charging for the food, a burger is going to go
00:13:24.820 from $2 to $4, which I have to pass that cost over to customers that they got to pay in California,
00:13:29.660 or someone's going to say, honestly, it's just not worth me doing business in California. Do people
00:13:34.240 realize what the margins are on restaurants? 3%, 4%, 5%? These guys are not making a lot of money.
00:13:38.480 And running a restaurant, you know how hard it is to run a restaurant? Have you ever had a family
00:13:42.540 run restaurant in your, like in your family? You ever worked there? How annoying and hard that job
00:13:47.920 is? You want to make it harder for them? They're going to leave your state is what they're going to do.
00:13:52.240 But no problem. You may say, Pat, not a big deal. We'll tolerate that. Great. Let's look at some other
00:13:56.220 things. Highest tax rates, individual income by state. Guess who's the highest? Number one,
00:14:02.040 13.3%. But you may say, Pat, I don't have a problem paying the 13.3 because the weather is
00:14:06.260 perfect. You're great. How high are the sales taxes in your state? California, top 10 is number
00:14:09.940 eight at 8.82. How about corporate income tax? California, top six or seven at 8.84%.
00:14:16.440 How about electricity bill when you look at by states? You ready? Look at California where they're
00:14:20.000 ranked. Look at the color. Okay. If you look at the top, navy blue is the lowest and it goes to blue,
00:14:24.200 yellow, orange, red. Look at red. Hot red. California, electricity bill. What if we look
00:14:28.900 at median home values? Look at California, navy blue, 522,000. The only ones ahead of California,
00:14:34.860 more expensive is Hawaii, 638, and you got DC at 606. How about taxes on gasoline? Where's
00:14:41.340 California rank? What do you think? California is so competitive, they decide to take number
00:14:44.740 one on this list here. Per gallon, you know how much they charge for tax? Ready? 65.1 cents. It's
00:14:50.380 the highest in America. The lowest is Alaska. By choice. It's only 8.95. Yet California is
00:14:56.260 six and a half times higher. So this is all economy. You may say, Pat, I don't care about
00:15:00.640 economy stuff. I want socially. You know, I just want to raise my kids in a place that
00:15:04.720 I'm comfortable with. No problem. Let's talk about social issues. Senate Bill 107. September
00:15:09.320 of 2022, Newsom signed this into law, blocking states with anti-trans laws from prosecuting families
00:15:16.200 who seek gender-affirming care in California, making it the first trans-sanctuary state. If you
00:15:22.840 want to be part of the first trans-sanctuary state, California is a perfect home for you.
00:15:27.320 Next, Assembly Bill 5, the Safe and Supportive School Act would mandate that teachers and
00:15:32.380 credentialed staff who serve public school pupils in grades 7 through 12 take an online training
00:15:37.940 course in LGBTQ cultural competency. Again, if that's important to you, California is a perfect
00:15:44.280 home for you. And by the way, just so you know, I have a bunch of others that I can read
00:15:48.360 to you, a bunch of other bills that if you want to entertain yourself, you can find them
00:15:51.700 everywhere. I'm not going to go through all this stuff. I think you get the point. But
00:15:55.000 how do we get here? Because like I said to you earlier, one county, okay, one of the top
00:15:59.420 five biggest counties in California, the last 22 presidential election, 19 times they voted
00:16:04.060 Republican in California. What? In California. So, and in the last seven elections, they've all
00:16:09.640 voted for Democrats. But prior to that, six straight, California voted red Republican. How
00:16:14.620 do we get here? So, if you look at this chart, here's what you'll notice, okay? Democrats currently
00:16:19.220 hold a 60 to 18 super maturity in the 80-seat California State Assembly. And it's been majority
00:16:23.860 like that since about 1996. But if you look at this chart from 92 to 2022, look how 1994 it was
00:16:31.140 once red. In 1994, Pete Wilson ran the Save Our State initiative, which got Republicans to lose
00:16:39.560 a ton of the Democrats. Why? Because nearly 40% of Californians are Hispanic. And they sat there and
00:16:45.320 said, what is this guy doing? 40% of the population is us. Reds, Republicans are against us. We can't
00:16:51.200 vote for something like this. I was in high school. The biggest conversation in high school was,
00:16:54.600 INES is going to come get you. INES is going to come get you. That's around the same time I was in
00:16:58.060 high school. So, Pete Wilson had a reputation of treating Hispanics and illegal immigrants harshly.
00:17:03.000 He put forward Prop 187, which denied all public services to illegal immigrants and forced all
00:17:07.680 state employees to immediately report illegal immigrants to the Immigration and Naturalization
00:17:11.520 Service for deportation. Immigration Naturalization Service, INS, for deportation. In California,
00:17:17.040 having won the largest Hispanic population in America, 40%, I think Texas said 47%. They associated
00:17:22.040 Republicans with being anti-Hispanic, not for them. So, they said, we're voting on the other side.
00:17:28.060 Okay. So, this leads me to the top five counties in the state of California. Number one being LA
00:17:31.880 County, 9.7 million. Then it's San Diego. Then Orange County. Then Riverside. Then San Bernardino.
00:17:36.300 Which of these counties do you think 19 out of 22 last elections voted on the red? I want you to guess.
00:17:42.940 Let's go through it. Here we go. First one, LA County. When you look at LA County, notice what you see
00:17:47.900 on the left. It shows all the years, 1936, all the way down to 2016. I have the 2020 results as well.
00:17:54.260 I'll give it to you. But out of, if you notice, all the check marks are blue. You see a couple reds,
00:17:58.600 six reds over there, which means in LA County, last 22 elections, six times has been red, 16 times has
00:18:05.300 been blue. So, LA County goes to the Democrats. Now, next one, second largest, San Diego County.
00:18:10.920 If you look at San Diego County, for the last 22, 14 out of 22 went red. By the way, if you look at the
00:18:18.000 consecutive red, there was a point where 14 out of 15 presidential elections, San Diego voted on
00:18:23.500 the right, San Diego. And for the last four, it's been on the blue. Okay, next one. Ready? Orange
00:18:29.380 County, 19 out of 22, red. 19 out of 22, red. There's a lot of great pockets in Orange County,
00:18:37.220 Manhattan Beach, Newport, some areas you can go to where there's a lot of people that are on that
00:18:41.740 side. So, OC, for some of you that are wondering about California or thinking about staying there,
00:18:45.520 you may want to go find a place in OC there. Next one, Riverside County, which was kind of
00:18:48.980 surprising. Did you know 15 out of 22 elections, they voted red? Riverside County, 15 out of 22?
00:18:55.620 Yep, that's what they did. 15 out of 22 voted red. And last but not least, San Bernardino,
00:19:00.220 12 out of the last 22, which means over 50%. So, there are counties in California who are sitting
00:19:05.340 there saying, listen, man, we are not for what these guys are doing. We are fully against it. And
00:19:10.180 those counties, if you're somebody that's watching and saying, I have no desire to leave California,
00:19:14.120 totally get it. If you're not, figure out a way to make some change because the current policies are
00:19:18.660 destroying your state. If you're watching and saying, I don't think it's going to change the
00:19:21.620 next 10 years, and I got a kid that's six years old right now. By the time it changes, my kid's
00:19:25.400 already 16 years old. They could indoctrinate him. I wouldn't take the risk if I were you.
00:19:29.060 I would start door knocking, talking to my husband and my wife and saying, hey, let's look at Tennessee.
00:19:33.580 Let's go to Texas. I would spend the next four weekends going to a different state each weekend,
00:19:38.520 go to Texas, go to Tennessee, Nashville, go to Florida, go to Nevada, go to these different markets.
00:19:43.360 Next eight weekends, next six weekends. And I said, babe, we have family here. We're going
00:19:47.480 to go to Houston. We're going to go to Dallas. We're going to go to Miami. We're going to go
00:19:50.880 to Jackson. We're going to go to Nashville. Pick and choose. But if you're staying, do your fight.
00:19:55.520 If you're leaving, start looking at this. Why? Because bad policies have consequences and
00:20:00.980 California is so arrogant about it that they don't think anyone's going to do anything because
00:20:06.060 they don't believe you have the guts and the courage to leave. They think they have you locked
00:20:10.700 in and you're afraid to leave. That's what they think about you, California. They don't think you
00:20:14.720 have the courage to leave. There's a word for people like that. Newsom thinks you're that,
00:20:18.140 just so you know. I don't mean to offend you. I'm just telling you. That's how they're playing with
00:20:22.000 you. They say, I dare you. Go ahead. Make a move. And most of you are not. Okay. So either get
00:20:27.660 involved in politics, either move to a better county, either do something about it or go to a
00:20:31.860 different state, especially if you have young kids right now, because it doesn't look like this
00:20:35.300 thing's going to change anytime soon. If you got value out of this video, give it a thumbs up and subscribe to the
00:20:39.980 channel. And if you enjoyed this video, there's another video we did on DC. Wait till you see what
00:20:43.660 they're doing in DC. It's absolutely crazy. If you've not seen it, click here to watch it. Take care
00:20:47.380 everybody. Bye-bye, bye-bye.