This week Florida Governor Rick Scott visited California and it was not a social trip. For the second year in a row, he was coming here to lure businesses back to his state.
Scott said he met with lots of executives. He also ran this ad on local radio stations:
Courtesy: Enterprise Florida
Another Rick - Rick Perry - also made a similar trip when he was Governor of Texas. But there's a big question about whether these trips actually work.
For more, Robert Kleinhenz, an economist at Beacon Economics, joined the show.
This isn't the first time a Governor has tried to lure businesses away, does it ever actually succeed?
"Well in the aggregate, when you take a look at the number of businesses that move out of state or you look at the amount of employment, both of which are a little hard to track from state to state. Job losses attributed to companies that leave California really amount to no more than a trickle relative to total jobs in the state."
Jamba Juice is moving its headquarters, a small automotive company we did a story on just moved...there are still some real issues here, right?
"Sure whether you look at the number of businesses or employment which I said earlier was a little bit hard to track or you look at population, out migration from state to state that is to say out of California to other states, that is about two-tenths of one percent of our total population. The numbers really are quite small but that doesn't mean we should ignore this issue. I think we need to be aware of the fact that we impose upon ourselves and businesses regulations to ensure a certain quality of life , safety and so on..."
What about that claim in Governor Scott's add, 700,ooo jobs will be lost, that can't possibly be true?
"Well, we have an economy with 15 or 16 million jobs, wage salary jobs, and several more independent contractor or 1099 workers. So the 700,000 number seems a little bit extreme, it could be a worst case kind of number that assumes that every minimum wage job that's at risk departs from the state. We know that that's not going to happen, there are all sorts of ways that businesses adapt to any change in cost whether it's up or down..."
To hear the full interview, click the blue play button above.