Exodus Warning: Trump Raises Concerns Over Potential Business Departures

Paresh Jadhav

10 months ago

Mass exodus is devastating for any management team’s morale and should be monitored closely, with early indicators being signs such as people leaving, aggressive competition entering your industry or changes to executive leadership as early warnings to be on the lookout for.

Kevin O’Leary, of Shark Tank fame and an entrepreneur himself, lashed out at New York and California for their anti-business environments, saying businesses – both existing and emerging ones – were opting to move to other states like Texas or Florida instead.

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Kevin O’Leary

Kevin O’Leary made himself a household name across Canada when he joined the cast of judges on CBC’s Dragons’ Den. Additionally, he co-hosted ABC’s Shark Tank and was featured as a guest on CNBC’s Good Morning America.

Shark Tank star and author Peter Thiel has amassed his fortune through helping kids learn to read. However, Thiel strongly opposed a ruling which ordered President Donald Trump to pay $355 million and forbidded him from conducting business in New York for years.

O’Leary Ventures Chairman Kevin O’Leary claimed New York has become an unattractive state due to its policies, high taxes and uncompetitive regulations; according to him, established businesses and startups alike are turning away from New York in favor of states such as Texas and Florida.

California’s Corporate Exodus

Imagine a garden where its brightest flowers begin to fade and gather for new soil – that is California, as its state and local economic policies drive businesses away to states with more favorable business environments and lower costs.

California and neighboring states alike are being negatively impacted by an exodus of companies from California. Businesses departing take with them jobs, tax revenue and the innovative economy for which California is known. Texas stands out as a state offering lower taxes and an inviting business climate for relocation.

Businesses such as Hewlett-Packard Enterprise, Palantir and Aviatrix recently announced plans to relocate their headquarters from California. Elon Musk of SpaceX and Tesla moved his company’s HQ from California to Texas after becoming frustrated by California government policies concerning COVID-19 lockdown policies; their new home can be found near Austin where there’s an immense battery factory.

Trump Warns of Business Exodus

Since a judge ordered the Trump Organization to pay nearly $355 million in civil fraud case, experts have expressed concerns that other companies may follow suit and pay. Governor Kathy Hochul attempted to allay these fears during her radio show “Cats Roundtable,” asserting that law-abiding business owners in New York do not need to fear being punished for lawful behaviors.

Hochul concedes that Justice Arthur Engoron’s ruling may cause some firms to leave California. Engoron banned Donald Trump and his sons from operating any businesses within California for three years and placed their company under independent monitoring.

The Exodus of New York’s Financial Firms

New York may be known as the global capital of finance, yet moving trucks have begun filling its streets this summer and it appears as if New York City is rapidly losing some of its top financial firms – something which would be devastating to local economies, and result in job loss as well as lost tax revenue for states like New York State.

These CEOs perceive the political climate in Gotham to be toxic. They wish to escape Letitia James’ bank fraud prosecution and the severe penalties she and her allies impose upon high-income residents.

Cuomo and de Blasio’s embrace of big government and open hostility towards private property has given firms that manage more than $1 trillion of assets under management the chance to flee New York and California for states like Texas or Florida with lower taxes and an open attitude toward businesses, leading them to flee to Florida in 2019 where businesses were welcomed with open arms. Since 2019, both states have each lost companies that manage over $1 trillion of assets under management to states like these two states.