California business owners of all sizes and nature understand intimately the inordinate expense and complication of running a company in the Golden State. Because of the hostile and expensive work environment, some business owners have chosen to move their operation to other states; while others have shut down altogether.
The end result is the same: California loses jobs.
That’s why I am not surprised that a recent study by two Sacramento State professors shows California loses an astonishing amount of money year after year due to regulatory laws.
How much?
$493 billion.
That amount is almost five times the state’s general fund budget, and almost a third of the State’s gross product.
The Varshney Study provides the most comprehensive and complete analysis of the total regulatory burden in California. The study and findings have implications for policy-makers and those in charge of the regulatory environment. The results also suggest that future research should attempt to understand how to minimize the intended and unintended costs of regulation.
Since small businesses are the lifeblood of California’s economy constituting 99.2% of all employer businesses, efforts to make the regulatory environment more attractive will make California a more attractive state for doing business. This in turn will improve the state’s output, employment, labor income, indirect business taxes, economic climate, quality of life, living standards and growth prospects.