Governor Davis was recalled, in part, because of the "bad business climate" in California. Now a study from the reputable Public Policy Institute of California refutes the charge that businesses were leaving the state.
"The theme of the famous California governor's recall of 2003 was that businesses were fleeing California in droves in favor of more friendly climates in Arizona, Nevada and other states where taxes and energy costs were lower and regulations less cumbersome."
"The conclusion of the PPIC study is that California prospered not on low taxes and wages, dirty water, potholes and rundown schools, but on the great investments it made in its infrastructure - universities, parks, highways - in the generation after World War II. Those programs nourished the state's growth and brought the jobs. Why do we always have to be reminded of that?"
FULL STORY: The myth of California's fleeing businesses
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Economic & Planning Systems, Inc.
UCLA Lewis Center for Regional Policy Studies
Mpact (formerly Rail~Volution)
Chaddick Institute at DePaul University
City of Piedmont, CA
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research