Elon Musk Issues Warning To California Politicians


OPINION: This article contains commentary which may reflect the author's opinion


Elon Musk, the CEO of Tesla, issued a warning to the liberal politicians running California who offer an unfriendly business environment while allowing chaotic scenes to happen in the streets in the Golden State.

Neve shy of expressing his opinions, thoughts, and feelings, Musks took to Twitter over the weekend to issue this cryptic admonition to reckless California legislators : “The Golden State is cooking its golden geese tonight. Sooo tasty at first, but then no more golden eggs.”

Musk also shared a story from Matt Taibbi, in which data, reports, and statistics are detailed about how Democratic policies and governance have led California down the road to ruin.

Given Musk moved Tesla from California to Texas, it would appear he believes this to be the case.

In his writing, Taibbi explains, “The story also turns out to be in part about why California, which had a growth streak dating back to the gold rush, saw it broken in 2020, when the population shrank by 182,000, causing a first-ever loss of a congressional seat. More tellingly, over 265 companies moved their headquarters out between 2018 and 2021, with the rate of flight doubling just during those years.”

“Based on interviews with current and former executives, congressional and legislative sources from both parties, past and present employment regulators, a handful of public and private litigators with knowledge of the relevant cases, and review of thousands of excruciating pages of court records, here’s the background to sensational cases like Riot Games, Activision, and Tesla that no one told you about,” he added.

In the words of Taibbi, from his piece of Substack entitled, “The Lawyers Who Ate California: Part One”:

Taibbi assimilates a high-profile lawsuit in California to what crooked politicians have done to business in the state, affecting the overall economy and downfall of one of the largest and once most wealthy states in the nation.

“You likely know the case: video game titan Activision, makers of Call of Duty and World of Warcraft, sued by the state of California for discrimination and harassment. The firm was acquired by Microsoft earlier this year for a staggering $68 billion, and with regulators in countries around the world awaiting resolution of California’s action before approving or denying that mega-deal, Department of Fair Employment and Housing (DFEH) vs. Activision Blizzard Inc. now becomes perhaps the most portentous lawsuit in the world.”

“The company filed a lengthy motion in its defense last Friday, detailing its side of a sordid-sounding case it believes should be wrapped up in its favor. However, the self-defense pleas of a leading current corporate Nosferatu received little bounce in popular press, which in the moral mania era isn’t much for ‘maybe they didn’t’ stories.”

“Sometimes in journalism, however, a story you think is about one thing, turns out really to be about something very different. The tale is barely about Activision. The real protagonists are the regulators.”

“In the spirit of California, long the cradle of American innovation, a small group of government litigators spent nearly a decade dreaming up an aggressive new vision of corporate regulation, one that’s seen agencies like California’s DFEH act like high-end plaintiffs’ firms. They laugh off mediation, jump quick as you can to litigation they may be mandated to avoid, then couple blunt public accusations with eye-catching damage demands that open at ten or fifteen times the size of previous record awards. Also in the California spirit there are ruthless box-outs of other regulatory agencies, private attorneys, and even the agency’s own in-house lawyers for the sole rights to be claimants in each of the target firms’ stories, told by media pals who act more like production partners than journalists.”

Taibbi continued to make his important point of the downfall of California and why it’s important:

Toward the end of Barack Obama’s administration, the West regional office of an investigatory arm of the Department of Labor called the Office of Federal Contract Compliance Programs, or OFCCP, was asked to conduct a routine compliance review of Oracle, employer to over 130,000 and the second-largest software company in the world.

The OFCCP’s mandate among other things is to promote diversity and bar federal contractors from discrimination, and Obama had a vision for the agency which involved using it aggressively to correct the pay gap. ‘You are in a unique position to fix this problem,’ Obama reportedly told DOL officials early in his term. ‘Why are you not fixing this problem?’

In establishing a “National Equal Pay Enforcement Task Force,” Obama cited census statistics that showed women earned just 77 cents for every dollar earned by men, which he called an “embarrassment.” “The pay gap no doubt existed, but Obama’s claim earned a whopping two Pinocchios from future fact-checking demigod Glenn Kessler at the Washington Post.

Kessler cited sources saying Obama was comparing apples to oranges, ignoring career and educational choices (men dominated the most remunerative majors like Petroleum and Metallurgical Engineering, while women dominated the least remunerative, like Studio Arts). Kessler cited a study from the St. Louis Fed that suggested that when women and men with similar educational backgrounds working comparable jobs were compared, a pay gap still existed, but it was far smaller than “most think.”

“This would become relevant at Oracle, where experts argued over whether to compare men and women with similar degrees and experience, or compare men and women with similar degrees and experience in the same field, among other factors. “In any case, the agency rolled out a new approach that more than ever before would stress using statistical analyses thanks to “access to more data,” to identify actionable pay gap issues.”

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