California’s economy dodged a Covid budget bullet thanks to tech, but flight risk is real

California’s economy dodged a Covid budget bullet thanks to tech, but flight risk is real

For all the talk of a California exodus, the largest U.S. state is in the midst of an economic resurgence.When Covid-19 shut down much of the economy in early 2020 and forced office workers to log on from home, some in the tech industry packed their bags, publicly announcing their permanent departure from California. Others just hit the road, uncertain of where the future would take them.Whether it was high taxes, political disenchantment, rising crime rates or the devastating wildfires that arrived earlier than normal and produced toxic air across wide swaths of the West Coast, California residents found many reasons to seek refuge elsewhere. For those with office jobs, escaping was easy because they could suddenly work from mountains, beaches, campsites and rental homes along the way.Some of the criticisms of California are the same as ever: State income taxes are the highest in the country. Regulations are stifling. Red tape is everywhere. Living costs are crazy.Others were Covid-specific: The response has been choppy and seemingly arbitrary. Schools and businesses were closed for way too long. Gov. Gavin Newsom, a Democrat, looked like a hypocrite for attending a dinner party at the French Laundry, where a meal costs around