People Who Move Lose Intangible Benefits

The town of Needles, California is hurting.  People are fleeing the town and businesses are failing. And now the town wants to leave the state of California. So, what's the cause? Is it because it's not pretty enough? People will always flock to bucolic places, right? Nope, that's not it:

“It's a beautiful little community; we've got a river that runs right through it, we've got Interstate 40, Route 66 and a railroad. It's a community that on paper should be a prospering little town. If our little town were in any other state than California, we would be the best community in the state."

--Needles City Council Member Steve Thomas

So their hills are green like ours, metaphorically-speaking, and people are still leaving. But why?

"Needles' biggest problem could be a mistaken perception that the state is outrageously expensive to live in, when compared to nearby states." -- id.

Fair enough, people are leaving because they mistakenly "think" Needles is too expensive. Tell me more about this misconception:

"...people who move lose intangible benefits." -- id.

Well, now we're on to something. People are willing to trade "intangible benefits" for real "tangible" ones. You know, they'll trade things like scenic views for food.  So why does Nevada (which is right on the other side of the beautiful river that runs through Needles) have more "tangibles" like food?  Is it because Needles residents don't want prosperity (sound familiar) so other people have to leave to find economic opportunity? Residents say "no":

“Needles isn't failing to grow because the citizens of Needles and the businesses of Needles don't want it to grow,” ...“It doesn't grow because the regulations of California ... make it cost prohibitive to do business here."

-- id.

Hummm.... regulations. Tell me more about those regulations. How is Nevada any different than California?

"My instincts tell me that Nevada has a more favorable business climate. The taxes are lower and the regulations and the laws pertaining to new businesses, pertaining to growth and development, are significantly different in Nevada and, I would say, more favorable."

-- California State Sen. Roy Ashburn

Wow, people are leaving because of regulations and taxes? How many people?

“A large and significant part of our population growth is from people deciding to leave California and enjoy the many benefits that Nevada has to offer them; whether it's lifestyle, (or) a tax-friendly environment for both business and individuals. We have no income tax and we have no corporate income tax. These are issues that are important to people, and it's not surprising that more people want to take advantage of it...“I'm sure that people are getting a little fed up with the burdensome role that government can play in your lives.” -- Ben Kieckhefer, press secretary for Nevada Gov. Jim Gibbons.

You don't say.

Comments

[Tim Vincent]

Ever been to Needles?
I have.

Forget the taxes, etc.
It is a HOT (extremely so) piece of dirt, split by the BNSF mainline and the interstate.
Any sort of services/shopping is 2 hours away.

I'd pay HIGH taxes to not have to live in Needles.

[Greg Decker]

Never been there but I did see video of the place on the FOX News coverage of the story. On the NV side of the river its booming. On the CA side its not. Reminiscent of White River vs Lebanon NH.