So what? This is not a new condition, so one would have expected it to have some significant impact by now if this was really a factor to anyone outside of the "I got mine so screw you" set. Yet California's economy is still overwhelmingly larger than that of any other state in the nation. If the costs of operating in California were not outweighed by the benefits you would have expected businesses to flee the state and not be replaced; this hasn't happened yet and the odds favor California coming out of the recession at the same pace as the rest of the country.