California, Nestle, And Decentralization

Tyler Durden's picture

Authored by Antonius Aquinas, annotated by Acting-Man's Pater Tenebrarum,

Goodbye, Socialist Paradise

Nestle USA has announced that it will move its headquarters from Glendale, California, to Rosslyn, Virginia, taking with it about 1200 jobs.

The once Golden State has lost some 1690 businesses since 2008 and a net outflow of a million of mostly middle-class people from the state from 2004 to 2013 due to its onerous tax rates, the oppressive regulatory burden, and the genuine kookiness which pervades among its ruling elites.


There has been a remarkable reversal of flow of people and businesses – but California’s ruling elite seemingly remains utterly clueless as to why this is happening and/or doesn’t seem to care. When people and businesses flee from such a well-developed region with such a favorable climate, one should realize that something is probably very wrong. Here is a link to a comprehensive study of the flight of businesses and a million middle class people (net) since 2008 (PDF).


A clueless Glendale official is apparently unconcerned about the financial repercussions of Nestle’s departure saying that it was “no big deal” and saw it as an “opportunity,” whatever that means!

The stampede of businesses out of what was once the most productive and attractive region in all of North America demonstrates again that prosperity and individual freedom are best served in a political environment of decentralization.

That the individual states of America have retained some sovereignty, despite the highly centralized “federal” system of government of which they are a part, has enabled individuals and entrepreneurs living in jurisdictions that have become too tyrannical to “escape” to political environments which are less oppressive.


The routes people aspiring to become small businessmen in California can take….


This, among other reasons (mainly air conditioning), led to the rise of the Sun Belt as people sought to escape the high taxes and regulations of the Northeast to less burdensome (and warmer!) southern destinations.

This can also be seen on a worldwide scale.  The US, for a long time, had been a haven of laissez-faire economic philosophy, which, not surprisingly, became a magnet for those seeking opportunity and a higher standard of living.

No longer is this the case as increasing numbers of companies and individuals are seeking to avoid American confiscatory tax and regulatory burdens and move “offshore” or expatriate to more favorable economic climates.


2016 state income taxes – to this one must add a more than 8% sales tax in California, all of which comes on top of federal taxes, plus onerous regulations and extremely litigation-happy “activists”. The only area in which California’s citizens got lucky (via referendum) are property taxes. On the other hand, the state has become extremely real estate bubble-prone, and low property taxes are probably not offsetting the drawbacks of the enormous, malignant housing boom-bust cycles the population centers are experiencing – click to enlarge.


Decentralization – the Key to Liberty and Progress

The idea of political decentralization as a catalyst for economic growth has become a part of a “school of thought” in the interpretation of how Europe became so prosperous compared to other civilizations.

After the fall of the Roman Empire, Europe for centuries was divided politically among numerous jurisdictions and ruling authorities with no dominant central state on the Continent.

The multitude of governing bodies kept in check, to a large degree, the level of taxation and regulation.  If one state became too draconian, it would lose population to less oppressive regimes.

Just as important, Europe’s governing system was aristocratic and monarchical which has proven to be far more conducive for economic growth than democracies.


Germany shortly before its unification in 1871 –  a patchwork of competing small states. Note that this was well after an initial wave of consolidation and centralization – a century earlier, Germany actually consisted of more than 370 independent territories! We previously discussed why highly decentralized polities are the best possible political dispensation for the common man and how extremely conducive they are to liberty and the progress of civilization in this brief missive on secession.

Map via


While the economic oppressed can escape among the various states, there is no avoidance from the wrath of the federal government unless through expatriation and that option has become less viable with those leaving still subject to tax obligations.  This, fundamentally, is the crux of the problem and has been since the ratification of the US Constitution in 1789.

The chance that a totalitarian state such as California or the Leviathan on the Potomac would actually reform themselves or relinquish power through legislative means is a mirage.  Nor will revolution work as revolutionaries while appearing altruistic, typically get a hold of the machinery of government to plunder society for their own self interest on a far grander scale than the supposed despots which they replaced!

The only viable option for the productive members of society to seek redress of state oppression is to argue, work, and eventually fight for political secession and the fragmentation of states as much as possible.

Decentralization is the only hope for those opposed to the modern, omnipotent nation state.  Moreover, any notion or effort to salvage the current centralized political system must be abandoned.


After Donald Trump’s election, many on the political left in California have begun to talk about secession – normally an idea libertarians (and some conservatives) are more likely to be sympathetic to. One thing the presidential election showed quite clearly was that regardless of the winner, about half of the US population was always going to be deeply unhappy about the outcome. In a patchwork of numerous completely independent territories, people would be free to move to whatever area had the political dispensation they preferred. We confidently predict that socialist experiments would be few and far between if they had to depend entirely on voluntary participants. It should be no surprise that Europe’s socialists are all in favor of centralization and “harmonization” (the latter is new-speak for “let’s introduce the most onerous taxes and regulations everywhere, then no-one can escape our clutches”).


Conclusion – The Ideological Battle Comes First

Naturally, before the breakup of the nation state can become a reality, the ideological case for political decentralization must be made.  Public opinion must be convinced of the superiority of a world consisting of many states.  Such a cause, however, will be considerably difficult after generations have been raised and made dependent upon social democracy.

When Nestle and other oppressed businesses and individuals can easily escape the clutches of totalitarian entities like California and, more importantly, the most dangerous government on the face of the earth for freer destinations, then will individual liberty and economic growth be assured.

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LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Feb 24, 2017 9:05 PM

Great move getting out of CA but Rosslyn, VA is for government lobbying. They'll be surrounded by the mega defense contractors. sigh...

D Nyle's picture

Old saying: How do you make a small fortune in California, Start with a large one

Manthong's picture

The nice thing about California is that it now verifies the old idiom that “if it appears to be too good to be true, it probably is”.

What is the state animal there?

Since I have a hyper active-imagination replete with an immense universe of analogies I apologize in advance because I could not keep this adult giggler to myself…

California nowadays is like a glory hole baited with a bear trap.

Richard Head's picture

She may as well lay back and enjoy it.

Stuck on Zero's picture

I agree with the article but ...  good riddance to Nestle. That is one of the most evil corporations on the planet. They are probably responsible for 20 millions dead babies worldwide. By pushing their chemical soups baby formulas on people they have caused untold human damage.

techpriest's picture

Makes me wonder, my sister (epidemiologist) never told me what company it was that paid her to study the cause of kidney failure in all the young Nicaraguan men who worked in some fields near their plant...

I do remember that they were really pushing a theory that it was related to some previously unknown disease, and had nothing to do with them (of course!)

limited man's picture
limited man (not verified) techpriest Feb 25, 2017 5:18 AM

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do...

xythras's picture
xythras (not verified) limited man Feb 25, 2017 7:12 AM
Mr. Universe's picture

You lost me at...

When Nestle and other oppressed businesses

Nestle opressed? More likely the opressors. Indeed one of the top 10 evil corporations in the world.

Yog Soggoth's picture
Official Trailer: Bottled Life - The Truth about ... - YouTube, and Michigan's Water Wars: Nestlé Pumps Millions of Gallons for Free While Flint Pays for Poisoned Water, and Save our Springs! No to Nestle!! : Indybay and  Nestlé - Sucking the World DryI really do hate most environmentalists, but a mutual hate of Nestle is always fun in an awkward crowd. Those who care about children would also note the cornering of the market in frozen pizzas and ice cream. You would be hard pressed to find one of those products that are not from the agents of Satan in your local grocery. Why so much interest in the children? They are the future!
darkstar7646's picture

It'll be legalized against the useless within a year or two.

38BWD22's picture



I recently wrote here at ZH that Japanese bearing maker Koyo has had their West Coast distribution in Reno, NV.  It seems that low taxes are more important than slightly longer transport distances.  

I would NEVER open a business in California.

political_proxy's picture

Nevada, speciffically Las Vegas has been a target location for liberals fleeing CA, slowly screwing up Nevada.

FreedomGuy's picture

Honestly, Californians whether they are fleeing or moving for more positive reasons are a damned plague that spreads out and infects their host. They have tilted Colorado and other areas left with the predictable bankrupting results.

Their answer is always the same in that the rich and corporations do not pay enough.

techpriest's picture

And of course, "the rich" are people who bank enough to be above average, but not enough to buy off all of the politicians and opinion-molders.

Also known as legal shakedowns.

Razor Burn'd Capitalist's picture

Get a life.


Colorado has always been rocky moutain fucked up free load'n hippies that ran out gas on the way to 'Frisco.

Max Cynical's picture

This is such a tired argument. IT's NOT rabid liberals leaving their California wet dream. It's freedom loving Americans moving to greener pastures.

Stop blaming Californians for all your troubles. Look in the mirror. Boulder, CO and Austin, TX have been liberal cesspools for decades. Was it the influence of liberal Californians that passed a magazine ban in Colorado and pushed Magpul to move their headquarters and manufacturing to Wyoming and Texas? Was it the influence of Californians or the fact that Texas is overrun with illegals that caused Austin, TX to become a sanctuary city.

Every major city in the US is trending left.

Son of Patton's picture

They have ruined parts og Idaho now too

chisler's picture

Last Republican out please turn off the lights.

The Navigator's picture

:No need  - when the last Conservative leases, the electric bill will be long overdue and the account closed for non-payment.

Yog Soggoth's picture

In Miami it was the last American take the flag, 25 years ago. Now it bi-partisimal?

rsi1's picture

summary; another lunatic writing down idotic ideas to confirm their fantasy.

UnclePhester's picture
UnclePhester (not verified) rsi1 Feb 25, 2017 8:39 AM

Summary: Your post contained ZERO (anything of value.)



Your whining and name calling out you as a socialist.

Elco the Constitutionalist's picture
Elco the Constitutionalist (not verified) Feb 24, 2017 9:11 PM

The "Ruling Elite" are a bunch of narcissists, psychopaths, and/or sociopaths. Considering anything outside of their personal greed for power, money, and influence is completely alien to them. They are incapable of patriotism, parenting, or considering their posterity. They have no God, no Nation, and no Family.

Their children are at most status symbols, but usually just a means of appearing human to others.

Kefeer's picture

Did you know that is how God describes the entire human race and he is correct; he has a perspective that we do not posses.

leftcoastfool's picture

Are you saying He screwed up when He designed us???

leftcoastfool's picture

dupe... fat finger on the save button...

techpriest's picture

It's more like, you have a choice, and usually the easy or self-serving choice is the direction people go.

froze25's picture

For the most part that is true for the undisciplined and ignorant low iq pop. They just don't understand that with planning and execution you can achieve success while helping those around you (family / friends /community). For the rest of us we excel but are hindered by the tax burden to "share" with those who are short sighted.

UnclePhester's picture


ItsSnowingInColorado's picture

If California sucedes from the United States, the United States should repatriate water rights from the Colorado River.

lasvegaspersona's picture

Easier to just take out the bad guys.

San Diego is nice.

Easier still...end welfare for illegals...problem mostly solved.

artichoke's picture

No, the people can go, but we're not giving up that real estate.

Houses Depreciate's picture

I don't think you could give it away.

political_proxy's picture

Lake Tahoe is part Nevada and part CA as well.

CA is not going anytime soon. 

darkstar7646's picture

I disagree.

I think part of the endgame is California will suffer one of three fates:

1) It votes to leave on it's own and does so.  I can't think a year or so of Trump-Merica is going to sit very well with one of the largest bastions against him.

2) A Convention of States is called and directly expels California.  As has been discussed here, one of the very real problems with the concept of a Convention of States is that they may not be able to control the results.  I would have to think one real look at the situation California presents to the other 49 states, especially those who openly went red, and a number of said States might decide the Union is better without California.

3) California is effectively seized by Trump's government and army and subjugated.  This is #2, but taken to a further extreme.

Singelguy's picture

I think you forgot 4) Civil War between the FSA/illegals and the law abiding tax paying residents. That would come after 1) or 2)

DrewJackson's picture


Or Mexico coming in and seizing large chunks of Southern and Central California?  

Obscene FRN Call's picture

I live in a part of the country known as the State of Jefferson; the differences of ideals between the far northern part of CA and the urban clusterfucks has long been recognized.  I had been fantasizing about secession for the past 8 years, it's rather discouraging that the people whom conservatives have been seeking to divorce are upstaging us from within the borders of this oversized political boundary.

If California succeeds to secede, it'll be the first step in the Balkanization of the state. There is far too little commonality between rural and urban, a tension that only worsens every time Sacratomato enables corporations to raid the countryside of its earthly wealth at the expense of its local residents order to sell it cheap (or subsidized!) to the horde.

Bring it!

darkstar7646's picture

You forget one fundamental fact:  California is a net-positive state -- it gives more to the government than it takes.

DEMIZEN's picture

only 3% of californian water is used for residential consumption, btw. If nevada want to grow its own veggies is very fucking fine with me. I dont own a farm, nor i pick silly berries.

lasvegaspersona's picture

Don't let the lack of income tax fool you. Nevada's politicians are as hungry as any. Massive new taxes on larger businesses and (probably) illegal vote slowly introduces increased goverment spending...for the children of course.

#1 on Trump's list should be illegal voters. They sprout up like weeds when the D's need them. Rumors of bus loads of California illegals spotted voting in November. We even passed an anti gun bill!

lasvegaspersona's picture

Don't let the lack of income tax fool you. Nevada's politicians are as hungry as any. Massive new taxes on larger businesses and (probably) illegal vote slowly introduces increased goverment spending...for the children of course.

#1 on Trump's list should be illegal voters. They sprout up like weeds when the D's need them. Rumors of bus loads of California illegals spotted voting in November. We even passed an anti gun bill!

artichoke's picture

Yes, I see him going after that by putting immigration high on the to-do list.  And conversely, the Dems are willing to burn the country down rather than seeing that necessary voting base decimated, with Obama and Hillary even encouraging riots (and Obama encouraged illegal voting in 16).