Part 4/9:
California’s high electricity prices, stringent environmental regulations, expensive labor, and soaring housing costs make it increasingly difficult for manufacturing and refineries to remain profitable. The state’s public policies have created a costly operating landscape that pushes corporations to relocate to states with lower taxes and fewer regulations—like Texas, Oklahoma, and Nebraska.
Regulatory and Legislative Barriers
Much of the destruction stems from regulatory overreach, including aggressive environmental policies and rising minimum wages—sometimes proposed as high as $50 an hour—making it impossible for many businesses to sustain operations within state lines. Automation becomes a tempting strategy, reducing dependence on costly human labor, leading to further job losses.