Not so long ago, everyone wanted to live in California. The temperate climate,
the beaches, the Rose Parade, Hollywood —– the mystique attracted millions to the state over the years. Today, it’s a far different story. Chances are if you talk to ten residents of the Golden State, four or five of them might tell you they’d like to leave.
Frankly, it’s not hard to understand why.
The inconsistent lockdown regulations are continuing to impact restaurants across California. Restaurant owners and employees are not only concerned about Covid-19, but also about their future employment. Los Angeles has banned all types of in-person dining, even if customers are social distancing, wearing masks and eating outside. There is little to no evidence that suggests outdoor dining has been a main contributor to California’s increase in Covid cases.
Restaurant owners rely on in-person dining to sustain their business. The economic impact on communities is drastic. Thousands of employees are struggling to make ends meet. Although, Los Angeles is fueled by wealth, the lower/middle class restaurant employees are the ones who are most impacted by the mandate. As large fast-food corporations benefit from the mandates, local non-chain restaurants are struggling drastically.
Although Gov. Gavin Newsom implemented these regulations, he was seen eating indoors at a restaurant, just hours after he established the new restaurant Covid guidelines. To make matters worse, Newsome also received millions of dollars in PPP (Paycheck Protection Program) loans throughout the nine business in which he has a stake.
PPP loans were created to help small business that needed to pay entry level employees who were struggling because of Covid. Newsom manipulated PPP loans to create another revenue stream for himself. In fact, Newsom’s winery received $918,720 in PPP loans to distributed among its 14 employees. The average California small business loan for an establishment of 14 employees was roughly 128,000. For perspective, the only other winery that received close to the same amount as Newsom’s is Oak Knoll Farming Corp, which retained 79 employees.
Lastly, as the regulations and taxes continue to add up, more and more people are fleeing California. Arizona and Nevada have seen an incredible increase of first-time homebuyers in their respected states. This has caused housing prices to go through the roof for locals who have been living there for years. Large corporations are also fleeing California. Business mogul Elon Musk moved Tesla production from California to Texas to escape the incredibly high regulations. Elon Musk is just one of a few businessmen who are making the transition from California to more open states. With the current conditions, the economic future of California is headed toward a steep downfall.
John Whitmore is an intern at Accuracy in Academia.