Note to readers: Since Texas Gov. Rick Perry recently encouraged California businesses to move to his state, this is a good time to reprise this column. It was published Aug. 17, 2009, when Nevada was similarly scouting for businesses.
By now you’ve probably seen those business-stealing advertisements from Nevada. One ad says that if you don’t move to Nevada you can “kiss your assets goodbye” because California is so expensive. There’s another that shows a pig with wings that asks, “California will be more pro-business … when?” Cute.
Yeah, sure Nevada’s got a point. It has no personal or corporate income tax. That state can offer goodies to businesses that decide to locate there. But be honest: Do you really want to move to Nevada? Once you get past the tax advantage, Nevada is a whole lot of flat desert.
I mean, really. We’re talking about a state whose towering cultural figure is Wayne Newton. Among all states, Nevada is the biggest producer of what? Heatstroke?
I’m skeptical that Nevada is that much better than California. I don’t even like to fly over it. So to get some state-to-state comparisons, I went to Forbes magazine’s website because it has all those lists that compare cities and states. And after looking at a few, I think Nevada should take a seat and quiet down.
For example, a year ago, Forbes’ list of “Best States for Business” put California at No. 40. That low position was largely because the state was No. 50 – dead last – in the ranking of the cost of doing business and because it was No. 45 in the ranking of its regulatory environment. OK, that’s grim, but no surprise. These are the categories that always hurt California.
So how did Nevada do? Well, it came in overall at No. 19. Granted, that’s better than California, but, c’mon, it’s not even in the top 10. Nevada’s cost of doing business came in at No. 26 and that’s supposed to be its big selling point. What’s more, its regulatory environment came in at No. 34. Sorry, Nevada. These ain’t bragging numbers.
Oh, another interesting stat from the “Best States” ranking was for the quality of life. That measures how good the school systems are graded, the crime rate, the cost of living and such. California came in at No. 28. Nevada, ahem, was No. 47. That’s lower than West Virginia. That’s a notch below Mississippi! Coming in at No. 47 out of the 50 states on the quality-of-life scale suggests that Nevada will need to do more than advertise.
OK, so let’s look at rankings between Los Angeles and Las Vegas. After all, if you were tempted to move to Nevada, you’d probably go to Vegas.
Uh, oh. This isn’t looking great for Vegas.
On Forbes’ list of “Best Cities for Singles,” we came in at No. 8. (“Los Angeles offers much for the singles set,” the magazine gushed.) Las Vegas came in at No. 22.
But look at its ranking of “Best Cities for Working Mothers.” Los Angeles came in at No. 33. Not great, but Las Vegas came in at No. 50. That’s No. 50 out of 50 cities ranked. Some of these rankings they make in Vegas should stay in Vegas.
Look, California is a high-cost state and it’s not a particularly good climate for the private sector. Some businesses have left and probably many are tempted to do so. That’s just the truth.
But if you’re thinking of leaving, do you really want to go to Nevada? You might kiss your assets goodbye here, but you’d roast them off in Nevada’s 130-degree heat.
If not Nevada, where? Well, I’m looking again at that “Best States for Business” list, and I see that North Dakota and Nebraska rank higher than Nevada. Would you rather live there?
If you’re thinking of moving, here’s a suggestion: Please stay in California. Work to make it a better state.
Charles Crumpley is editor of the Business Journal. He can be reached at
[email protected].
