Written by Jamie Parsons
In California, most residents rely on companies for financial support and a stable lifestyle. Just this week, Apple reported having spent more than $1 billion to help low-income Californians buy a home. However, with that being said, as of 2020, there has been an exodus of businesses fleeing California due to high taxes, regulations, and cost of living. With no help being given by Governor Newson, this means California is not only losing thousands of jobs but their only source of aid.
In 2019, Apple created a fund aimed to address California’s affordable housing crises. Currently, their funding has supported the creation of affordable housing in 25 of California’s 58 counties. According to Times of San Diego, with the money being raised, “$1 billion would go toward a state-run affordable housing investment fund, another $1 billion toward first-time homebuyer assistance and the remainder toward programs aimed at building new affordable housing and nonprofit groups in the San Francisco Bay Area.”
On top of creating a fund, Apple and thousands of other companies provide jobs for Californians. As of right now, there are 36,786 Apple employees in California. But what would happen if Apple were to leave California?
Ever since the lockdowns occurred, companies have been leaving the Golden State to go to states with a more “supportive business climate” such as Texas, Arizona, and Florida. By doing so, they have had to let go of many of their employees. For example, Stitch Fix, a personal styling service, laid off 1400 stylists in California after deciding to reinvest in lower-cost states.
By California ranking 48th in terms of business climate, and having a cost of living 50% higher than the national average, companies ranging from small to large are packing up and leaving to other states. As companies leave, they are taking jobs and any form of financial support with them; adding on to the state’s undergoing economic tragedy placed upon by COVID-19. Governor Newsom has failed to provide Californians with a stable state to live in and is now driving out the only sources of a steady income.