Just how much ink needs to be spilled about how California and Bay Area are doomed. I have probably read a hundred article over the last 15 years predicting the demise of both, but in reality the exact opposite happens as California and Bay Area economy continue to crush the rest. The gap between SF and rest of the country when it comes to venture investment has actually grown as the cost of living has gone up. For example, in 2018, $45bn was invested in Bay Area startups whole only $1.5bn was invested in Austin and even less in Denver, Utah etc. It is not even close. Weirdly, the other fast growing tech regions are similar to California - expensive, dense, and left leaning (NYC, Boston, Seattle).
Maybe this time the prediction will be true, but I am willing to take a large bet against it. And this is because several things, but the primary reason is that California continues to overindex it's policies towards people, while other competing states overindex on business friendliness. But in the knowledge economy, a thirivng talent market is far more relevant to a business than some tax breaks. If you can't execute and be profitable, what's the point of a tax break. California optimizes for people through various mechanisms - non competes, inclusivity, diversity, environment, labor protection, safety net etc. If a place is great for people, it is great for business.
Maybe this time the prediction will be true, but I am willing to take a large bet against it. And this is because several things, but the primary reason is that California continues to overindex it's policies towards people, while other competing states overindex on business friendliness. But in the knowledge economy, a thirivng talent market is far more relevant to a business than some tax breaks. If you can't execute and be profitable, what's the point of a tax break. California optimizes for people through various mechanisms - non competes, inclusivity, diversity, environment, labor protection, safety net etc. If a place is great for people, it is great for business.