Money and business do tend to migrate to where they’re treated the best. From Wolf Richter at wolfstreet.com:
And we coined “Management by Zooming Around.” Which is what Oracle’s Larry Ellison is doing.
When on December 11, Oracle disclosed that it “is implementing a more flexible employee work location policy and has changed its Corporate Headquarters from Redwood City, California to Austin, Texas,” it was another step in the process that we will henceforth call “Techsodus.”
The exodus of tech companies, executives, billionaires, millionaires, and regular tech employees from California, and particularly from San Francisco and Silicon Valley, is a combo of fleeing California and a shift to work-from-anywhere. Texas, Florida, Colorado, and other states have been among the destinations. Texas and Florida don’t levy state income taxes, so sure.
But Larry Ellison, co-founder and chairman of Oracle, isn’t moving to Texas along with the headquarters of his company. He has moved his primary residence to Hawaii, following Oracles new doctrine of working from anywhere. And Hawaii’s state income taxes are not far behind California’s.
Oracle already has a 560,000-square-foot campus in Austin, which it opened in 2018 – and moving its headquarters to Austin might not change all that much at first in terms of employment. Oracle said that it would “continue to support major hubs for Oracle around the world,” including its soon-to-be former headquarters in Redwood City. Oracle, founded in 1977, is one of the older tech companies that helped make Silicon Valley.
The more they investigate, the more they discover matters that needs further investigation. From Jon Rappoport at nomorefakenews.com:
In this article, I’m going to discuss two companies, Dominion, and ES&S. I would advise investigators not to go to sleep on ES&S.
I’m not going to repeat all charges that have been leveled at Dominion Voting Systems. But look at what happened in Texas, when the Secretary of State had an analysis done in the fall of 2019.
The report was titled, “Voting System Examination Dominion Voting Systems Democracy Suite 5.5-A.”  It was prepared by James Sneeringer, Ph.D. Designee of the Attorney General of Texas.
The devil is in the details, so here they are:
“Adjudication results can be lost. In the [prior] January exam, during adjudication of the ballots in the test election, one of the Dominion representatives made a series of mistakes that caused the entire batch of adjudication results to be lost. We did not see this problem again during this exam, but the adjudication system is unchanged, so this vulnerability is still present. Recommendation: Certification [approval of the Dominion system] should be denied.”
“Installation is complex, error prone, and tedious. I counted 184 steps in their installation manual before deciding to estimate the remaining steps. I estimate a total of about 500 steps are required to install the software. I did not count steps that merely said something like ‘Click OK’ or ‘Click Next.’ This installation manual is 412 pages long with an additional 23 pages of front matter — contents, lists of figures, and the like…Recommendation: Certification should be denied.”
The carnage in the oil and gas patch has been gruesome. From Wolf Richter at wolfstreet.com:
The bankruptcy epicenter is in Texas.
The Great American Oil Bust started in mid-2014, when the price of crude-oil benchmark WTI began its long decline from over $100 a barrel to, briefly, minus -$37 a barrel in April 2020. Bankruptcies of US companies in the oil and gas sector started piling up in 2015. In 2016, the total amount of debt listed in these filings hit $82 billion. Bankruptcy filings continued, with smaller dollar amounts of debt involved. In 2019, the shakeout got rougher.
And this year promises to be a banner year, as larger oil-and-gas companies with billions of dollars in debt collapsed, after having wobbled through the prior years of the oil bust.
The 44 bankruptcy filings in the first half of 2020 among US exploration and production companies (E&P), oilfield services companies (OFS), and “midstream” companies (gather, transport, process, and store oil and natural gas) involved $55 billion in debts, according to data compiled by law firm Haynes and Boone. This first-half total beat all prior full-year totals of the Great American Oil Bust except the full-year total of 2016:
The founding fathers would never have put up with this horseshit. From Becky Akers at lewrockwell.com:
Gabrielle Ellison owns a bar in Odessa, Texas. She mourns as do so many entrepreneurs that “her business is sinking and her employees are struggling” since Our Rulers forced her “to close up shop. Ellison said she’s been paying her employees with no help from the paycheck protection program.” She doubts her ability to endure Leviathan’s economic embargo: “We can’t take it no more, we’re not going to make it…”
So she re-opened Big Daddy Zane’s this past Monday, defying Gov. Greg “Stalin” Abbott’s diktat.
Ms. Ellison invited a group called “Open Texas” to her celebration. These patriots not only insist that “All Businesses Are Essential” but have banded together “to oppose the government orders telling businesses to stay closed and residents to remain at home… .” One member explained their goal in an appeal to his fellow consumers: “When we help businesses open up, support them. We get them some revenue and we get them back on their feet. We are only going to reopen the country by empowering people and helping them stand up and getting them back off their knees.”
Open Texas proved that they love fun as much as they do philosophy when they accepted Ms. Ellison’s invitation “almost immediately.”
The shale boom is over, but not the financial fallout. From Wolf Richter at wolfstreet.com:
Texas at the epicenter. We’re witnessing the destruction of money that loosey-goosey monetary policies encouraged.
Following the sharp re-drop in oil and natural gas prices in late 2018, bankruptcy filings in the US by already weakened exploration and production companies , oilfield services companies, and “midstream” companies (they gather, transport, process, or store oil and natural gas) jumped by 51% in 2019, to 65 filings, according to data compiled by law firm Haynes and Boone. This brought the total of the Great American Shale Oil & Gas Bust since 2015 in these three sectors to 402 bankruptcy filings.
The debt involved in these bankruptcies in 2019 doubled from 2018 to $35 billion. This pushed the total debt listed in these bankruptcy filings since 2015 to $207 billion. The chart below shows the cumulative total debt involved in these bankruptcies since 2015.
For many businesses in California, moving to Texas has become a no-brainer. From Tyler durden at zerohedge.com:
Around 700,000 people left California last year, with more than 10% moving to Texas.
According to a new report by Yardi Systems, over 86,000 people abandoned the Golden State. In terms new Texas residents overall, ex-Californians constituted around 15%, according to the Dallas Morning News.
The influx of Californians should come as no surprise, as businesses have been migrating out of the high-tax, high-crime, heavily regulated statefor cheaper pastures.
Chairman and founder Charles Schwab noted that one of the drivers behind the move from California was that “the costs of doing business here are so much higher than some other place.”
U.S.—New billboards have been popping up in California with the slogan “Move to Texas: We have electricity!” Many see this as a play to lure jobs away from California, as many jobs rely on electricity, especially in the modern economy. This could especially be attractive to jobs in the tech sector.
Roy Rivera, a tech analyst with decades of experience in cutting edge technology, explained that “a lot of tech uses electricity.” He then pointed to a chart showing that tech businesses can be at least 300% more effective when they have power.
California Governor Gavin Newsom was dismissive of Texas’s claims, though. “They’re making false claims of being able to deliver electricity 24/7,” Newsom said, “but it just can’t be done.” Newsom was also dismissive of the Lone Star State’s other claims, such as affordable housing, plenty of water, cheap gas, plastic straws, and not constantly being on fire. “It sounds made up,” said Newsom. “I don’t even think there is a Texas.”
California plans to fight back. It’s now working on a wall to keep people and jobs from leaving California. The planned wall should extend along the entire California border, except for the southern part.
Yes, and the reason stupid kids get bad grades is because there are smart kids in the class. From Mac Slavo at shtfplan.com:
California’s authoritarian governor, Gavin Newsom, blamed the state of Texas for California’s homeless crisis. Rather than put the blame directly on the policies California has instituted that stifle free enterprise and punish heavily those who produce, Newsom said it’s the fault of Texas.
Former California assemblyman turned Texas resident Chuck DeVore reacted to Newsom pushing the blame onto others. The vice president of the Texas Public Policy Foundation, Chuck DeVore, said Wednesday that Gavin Newsom is “responsible for the policies that have created California’s homeless crisis,” in the wake of the governor blaming Texas for San Francisco’s homeless crisis. “What you’re seeing here are the words of a desperate man that we should almost feel sorry for,” DeVore, who served as a California assemblyman for six years, told “Fox & Friends.”
“Governor Gavin Newsom has been in office now for 22 straight years, starting at the San Francisco board of supervisors,” DeVore added. Homelessness has been rampant across the state of California in the past few years and merchants and homeowners have become increasingly vocal and incredibly irate at how things are going in the socialist dystopia.
Unlike many websites, Straight Line Logic does not solicit donations. If you're going to lay out your hard-earned money, you should get something in exchange. If you like the site and want to support it, buy The Golden Pinnacle or The Gordian Knot, either as a book or download. The links are on the right-hand side of the page, in the Blogroll section. You'll be supporting the site, and getting a great book and hours of enjoyable reading.