California’s business, resident exodus due to ‘failure of governance,’ UCLA economics professor says

UCLA professor Lee Ohanian argued on “Mornings with Maria” on Monday that California’s mass exodus is “really just a matter of simple economics.”

“California’s becoming too expensive and too inefficient compared to alternatives,” the economics professor said.

He added that “the root cause” of the exodus out of the state is because of “a failure of governance by state policy makers that’s created the 48th worst tax climate in the country and the 48th worst regulatory burden.”

“Those regulatory burdens include regulations that make it extremely difficult and extremely expensive to build housing,” Ohanian, a senior fellow at the Hoover Institution, noted.

The Hoover Institution is “a public policy think tank promoting the principles of individual, economic, and political freedom,” according to its website.

Several large firms, including Oracle, Tesla and Hewlett Packard Enterprise have recently announced their plans to leave the Golden State.

Hewlett Packard Enterprise disclosed in a Securities and Exchange Commission (SEC) filing in December that the San Jose, California-based tech company is moving its headquarters to Houston, Texas.

Less than two weeks later, Oracle announced it is joining Tesla and Hewlett Packard Enterprise in moving some operations to Texas, detailing the move in a filing with the SEC.