This is what happens when Economic Freedom gets curtailed: economic opportunities shrivels as investors leave for better alternatives. In short, money goes where it is treated best.
The California experience from CNN:
Buffeted by high taxes, strict regulations and uncertain state budgets, a growing number of California companies are seeking friendlier business environments outside of the Golden State.
And governors around the country, smelling blood in the water, have stepped up their courtship of California companies. Officials in states like Florida, Texas, Arizona and Utah are telling California firms how business-friendly they are in comparison.
Companies are "disinvesting" in California at a rate five times greater than just two years ago, said Joseph Vranich, a business relocation expert based in Irvine. This includes leaving altogether, establishing divisions elsewhere or opting not to set up shop in California.
People respond to incentives. This is what regulators and policymakers everywhere, including the Philippines, don’t seem to understand.
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