California
California’s Loss Is Texas’s Gain
Young Man and Woman Riding Bikes on Paved Trail in Houston’s Buffalo Bayou Park (view of river and … [+]
Texas’s border situation is messy, but its economy remains strong and has been for years. Recently released data show that from 2010 to 2019 Texas led the nation in job gains from business relocations. Meanwhile, California led the nation in job losses from relocations. Texas’s economic model of low taxes and modest regulation continues to outcompete California’s high-tax, high-regulation model for businesses and residents.
A new analysis from the Federal Reserve Bank of Dallas of recently released National Establishment Time Series data confirms that Texas has been a magnet for businesses. From 2000 to 2019, more businesses moved to Texas than left, and the gap between in-migration and out-migration widened in the years just before the pandemic, as shown in the figure below.
Texas establishment gains and losses
From 2010 to 2019, over 25,000 businesses and 281,000 jobs relocated to Texas from other states. Some businesses and jobs left, too, but on net Texas gained 7,232 businesses and almost 103,000 jobs. Over this period, Texas was second in net businesses gained, behind Florida, and first in net jobs gained, ahead of Florida, Georgia, Michigan, and Arizona. California, New York, and New Jersey had the largest net job losses as shown below.
Net job gains by state
Many of the jobs that left California ended up in Texas. Over 44,000 jobs left California for Texas, while only 14,700 jobs moved the other way. Oklahoma and New Jersey also sent thousands of jobs to Texas, while Nevada and Virginia gained the most jobs from Texas.
The proximity of Oklahoma to Texas partially explains the flow of businesses and jobs between them, but proximity does not explain the large inflow of jobs from California and New Jersey. Instead, it suggests that entrepreneurs and workers left these two highly regulated, high-tax states to look for success in Texas, a state with lower taxes, cheaper housing, and an overall friendlier business climate. Dozens of studies show that taxes and regulation impact where businesses and workers locate, and the Dallas Fed’s analysis provides further evidence.
Texas is a big state, so when a business decides to move there, it has a lot of places to choose from. The Dallas Fed’s analysis shows that businesses that moved to Texas mostly chose Dallas or Houston. Both metro areas gained more than 80,000 jobs from relocations from 2010 to 2019. Fort Worth, Austin, and San Antonio each gained less than half as many jobs. This may be surprising given how often we hear stories of tech firms moving to Austin, but it reminds us that high-profile moves like Tesla’s
TSLA
Texas’s success at attracting businesses and jobs over the last decade reminds us that basic insights from economics remain true. People will move to states that allow them to experiment, innovate, and expand their businesses, like Texas, and leave states that bind them in rolls of red tape, like California and New York. People also prefer states with lower taxes since this allows them to keep more of what they earn, whether as workers or entrepreneurs. If nothing changes, we should expect the 2020s to look like the 2010s: States such as Texas and Florida will continue to grow while California and New York stagnate or decline.
California
‘Explosive diarrhea’ parasite surfaces in California as health officials fear statewide surge
A parasite that causes bouts of “explosive diarrhea” has surfaced in California as a fast-growing outbreak sweeps across the US — with health officials warning the state’s official case count likely captures only a fraction of the true number of infections.
State data show between that between 1 and 10 California cases have been linked to a broader statewide outbreak as authorities continue tracking the spread.
But officials say many infections are never confirmed because some people recover without seeking medical care or getting tested, the parasite requires specialized laboratory testing to detect, and confirmed cases can take about six weeks to be reported.
Most of California’s infections have been tied to international travel rather than the expanding multistate outbreak.
Across the country, at least 2,944 people in 32 states have been sickened, with Michigan bearing the brunt of the outbreak.
The state has reported 1,562 infections, roughly 31 times the approximately 50 cases it typically records in a year, and at least 44 people have been hospitalized.
Investigators are examining whether contaminated food is driving the spike, but they have not identified a specific produce item, supplier or grower responsible for the outbreak.
Cyclospora, the parasite behind the illness known as cyclosporiasis, is typically spread through food or water contaminated with feces.
Previous outbreaks have been traced to imported fresh produce, including raspberries, basil, snow peas, mesclun lettuce and cilantro.
According to the CDC, the illness can cause severe gastrointestinal symptoms, including watery diarrhea “with frequent and sometimes explosive bowel movements.”
Other symptoms include nausea, vomiting, abdominal pain, bloating, fatigue, loss of appetite and weight loss.
Symptoms usually begin about one week after infection, although they can appear anywhere from two days to two weeks later, making it more difficult for investigators to determine where someone was exposed.
The CDC recommends treating cyclosporiasis with the antibiotic trimethoprim-sulfamethoxazole, commonly sold as Bactrim, Septra and Cotrim, over a 10-day course.
As investigators continue searching for the source of the outbreak, some Taco Bell restaurants have temporarily removed fresh ingredients from their menus as a precaution.
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Locations, including some in Metro Detroit, posted notices telling customers they were temporarily unable to serve lettuce, cilantro, onions, pico de gallo and guacamole because of a nationwide recall while health officials respond to the increase in cyclosporiasis cases.
Restaurants in outbreak hot spots, including Michigan and Ohio, have also pulled raw lettuce, onions, cilantro-onion mix, pico de gallo and guacamole from their menus.
However, neither the CDC nor the Food and Drug Administration has linked Taco Bell to any reported illnesses.
California
Disneyland turns to cheaper evening passes and the internet speculation explodes
If you visit Disneyland with any frequency, a discount from the usual price of more than $100 a day would feel like a blessing.
However, almost as soon as Disney recently offered a rare chance to purchase limited evening passes to its two Southern California parks at about half of the regular cost, the online speculation among Disney enthusiasts behind the company’s strategy spiked. It was no surprise that the lower-priced tickets sold out in about a week.
Some fans referred to the five-hour ticket as a “recession” indicator on social media or as a way to “capture random stragglers.”
Others believed the ticket offered fireworks enthusiasts an opportunity to catch a nighttime spectacular, while one person said the pass allowed visitors to partake in other Southern California activities before finishing their evening at Disneyland.
Buyers of the pass are first set to attend the parks this Sunday, with dates extending until August.
Disneyland officials brush off the speculation, saying the ticket sale is business as usual. Fortunately for us, industry insider Dennis Speigel offered some analysis behind the move.
Let’s jump into the offer and his thoughts on the deal.
All about the ticket
Late last month, Disneyland offered a one-park evening pass for $59 to Disneyland or California Adventure. The ticket is good from Sundays to Wednesdays, starting this Sunday until Aug. 5.
California Adventure would allow evening patrons in at 5 p.m. until closing at 10 p.m. and Disneyland at 7 p.m. until closing at midnight.
A park reservation was still required for evening passes.
The tickets became available June 30 and sold out by July 6, according to a Disneyland spokesperson. Disneyland officials declined to say how many tickets were sold.
What’s Disneyland’s rationale?
The ticket offering is not all that rare.
Similar opportunities began as far back as 1957 with Disneyland date nights admission running from 5 p.m. to 1 a.m, a park spokesperson said.
“Our goal is to provide guests with a variety of limited-time ticket offers throughout the year — this being just one example of that,” a Disneyland spokesperson said.
Softer than a dole whip
Speigel, founder and chief executive of Cincinnati-based International Theme Park Services, Inc., a theme park consulting firm, said theme parks, ranging from small, regional locales to international destinations are struggling with a “softness” in admission demand that began in April but became more acute in June.
That slump at Disney and Universal Studios properties nationwide, Speigel said in a call with The Times, is due to three primary factors: the economy, weather and the Iranian War.
“There’s a nervousness from visitors, a lack of understanding of what to expect because of the war and economy,” he said. “We saw something like that last year driven by tariffs with soaring gas prices, and we monitored how people started moving back on their spending.”
Visitors still want deals
To counter that softness, Disney is turning to discounts, hoping to kindle interest, Speigel speculated.
“They understand their guests are in a crucible, and this drives the decision to discount,” he said. “People still want their escapes; that doesn’t go down. They just want to pay less to escape.”
Disney’s evening pass is also a shrewd offer because it aims to attract another type of guest: budget-minded locals who might be enticed by $59, Speigel said.
“It’s a smart attempt on Disney’s part,” Speigel said. “It moves in the local people who aren’t the season pass holders or tourists, and it fills the park. That’s what parks are looking to do right now.”
The week’s biggest stories
(Etienne Laurent / For the Times)
Boyle Heights fire
Two graduation traumas
Beach takeovers
Science and technology
What else is going on
Must-reads
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(Stephanie Breijo / Los Angeles Times)
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California
Amber Alert issued for 3-year-old out of California City in Kern County
CALIFORNIA CITY, Calif. (KABC) — An Amber Alert was issued Friday by the California Highway Patrol for a 3-year-old child out of California City believed to be in imminent danger.
Emaria Peel, 3, was last seen Friday at about 7:17 p.m. in the area of Redwood Boulevard and 83rd Street in California City, according to police.
Authorities believe 31-year-old Charnay Mclin took Emaria. Investigators have not yet said what relationship, if any, Mclin has to the child.
The suspect was described as being 5 feet 9 inches tall, 185 pounds, with black hair and brown eyes.
The child was described as being 1 foot 6 inches, 20 pounds, with black hair and brown eyes.
Police believe they’re traveling in a gold-colored 2021 Kia Sorento with the California license plate: 36095DV
Mclin is considered armed and dangerous. Authorities wants anyone who sees them to call 911.
No further details were immediately known.
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