EDITORIAL: Why California tech millionaires keep moving to Nevada

James Carville once famously said, “It’s the economy, stupid.” Something similar sums up why many successful California business leaders have abandoned the state for Nevada. It’s the business climate, stupid.

As the Review-Journal’s Patrick Blennerhassett recently reported, successful business executives keep moving to Nevada from California. That group includes billionaire Andrew Cherng. He’s one of the co-founders of Panda Express. David Chao is a top executive with the venture capital firm DCM. He also came here from California.

California is one of the largest economies in the world. It’s home to some of the world’s biggest technology companies such as Apple, Google, Nvidia and Meta, which owns Facebook. Its weather and beaches are the envy of Nevadans who’ve just endured five months of scorching temperatures. It has a top university system and many professional sports teams.

But those attractions aren’t driving people away from California. It’s the government.

“The employment laws are a lot easier here, the affordability of a house, transportation,” Kent Yoshimura, co-founder of NeuroGum, said about why he moved to Summerlin.

Here’s how Teddy Liaw, who started NexRep, sums up Nevada’s appeal to successful Californians: “pro-business.” In contrast, California stifles businesses with regulations and taxes that make it difficult to grow a company.

“There’s a reason they’re leaving California in the first place: the politics and the regulatory environment,” he said. “They are seeing the allure here in terms of access and quality of life and the opportunities we have here. At the end of the day California has lost population.”

The lesson is obvious. Poor policies can drive people out of a state that boasts unparalleled advantages in other areas. For all its strengths, Nevada doesn’t have all of the Golden State’s geographical and other amenities. That makes it even more important for Silver State elected officials to avoid repeating the mistakes of California.

That starts with keeping taxes and regulations low. No matter the good intentions of bureaucratic central planners, they consistently fail miserably when compared with a vibrant free market in terms of improving living standards and generating prosperity. Entrepreneurs who create successful enterprises and job opportunities should be celebrated and encouraged, not faced with confiscatory tax rates and a regulatory state that recognizes few boundaries.

Nevada has the geographical advantage of being close to California. But if it adopts the policies that drove job creators out of that state, those individuals and companies will go to Arizona, Utah, Texas or Florida. Nevada politicians — and voters — need to remain vigilant in fostering the conditions for prosperity.