Democrats are getting smacked in the face with reality.
And their constituents are the ones paying the price.
Now Democrats forced one company to make this drastic move.
Democrat elites have insulated themselves from the ramifications of their own ideology.
They think they can tax, regulate, and control people and businesses as much as they want without any repercussions.
This belief is reinforced in deep-blue areas like California.
But reality always wins, and yet another company is leaving California due to the hostile business climate.
Smithfield Food, the largest pork processor, is shutting down its California operation because the cost of business is too high in the Golden State.
Timcast reported that “Smithfield Food Inc. announced on June 10 that it will close its Vernon plant, which employs 1,800 people, in February of 2023. The company said California’s increased price of livestock feed, transportation and packaging have driven up its operating costs . . . [T]he state passed Proposition 12, which requires pigs and sows have enough space to lie down and turn around in their stall.”
Prop 12 forces companies to spend millions of dollars to alter their businesses based on California regulators.
Smithfield spokesman Jim Monroe said, “It’s increasingly challenging to operate efficiently there…We’re striving to keep costs down and keep food affordable.”
Monroe added that the company spent 3.5 times more per head in California than its “other locations where they do the same type of work.”
Several prominent businesses have left California in recent years.
Elon Musk moved Tesla to Texas, as did investing firm Charles Schwab.
Commentators Joe Rogan, Dave Rubin, and Ben Shapiro all moved their operations from Los Angeles to Austin, Miami, and Nashville respectively.
COVID really drove home the point that staying in California to live under the boot of Gavin Newsom is not ideal.
The National Pork Producers Council said in a statement, “California represents approximately 15 percent of the U.S. pork market . . . The state has nearly 40 million residents, with a large Asian, Black, and Latino populations, all of which have long-standing cultural preferences for pork. Proposition 12 will dramatically reduce the pork supply for Californians and raise prices that will disproportionately affect low-income households.”
California is running a stress test to see how much the state can punish business owners before they fold and leave the state altogether.
And it’s not just businesses.
Middle-class Californians are leaving in droves as well.
The cost of renting a U-Haul out of the state is several multiples higher than the cost of renting a truck going into the state.
Stay tuned to Blue State Blues for any updates to this ongoing story.