There has been no shortage of articles bemoaning the burden of regulations on business. Over-regulation hurts competiveness, discourages hiring, and it a bottom line cost to businesses, not to mention just being an intrusive quagmire of red tape that can baffle the most determined entrepreneur. The problem is so evident that even the White House is determined to address the issue (yeah, we’ll see).
Nowhere is this more aptly demonstrated than in California. The quintessential nanny state has so poisoned the business environment that business are literally leaving in droves:
Companies are “disinvesting” in California at a rate five times greater than just two years ago, said Joseph Vranich, a business relocation expert based in Irvine. This includes leaving altogether, establishing divisions elsewhere or opting not to set up shop in California.
This is obviously not good for The Golden State, which in July was second only to Nevada in unemployment: a whopping 12 percent.
There is one industry in California that is thriving. With budget cuts affected the San Jose Police Department, the prostitution industry has in effect become totally deregulated. Business for the street-walking entrepreneur has never been better:
Two police sources told NBC Bay Area that prostitutes have even been traveling from as far as Oakland and Fresno to take advantage of San Jose’s less scrutinized street corners.
So California, through its own mismanagement has unwittingly unfettered the happy hookers, who are now freer to ply their trade without the interference of the local gestapo, who may have more important things on their mind.
Hayek would be proud.