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February 23, 2024 | Strategic Relocation, Part 3: Whales Fleeing Weaponized Courts
John Rubino
In January, a Delaware judge forbade Tesla from paying its CEO, Elon Musk, an amount to which the board and shareholders had previously agreed. Musk responded by moving the corporate registration of SpaceX from Delaware to Texas and threatening to do the same with Tesla.
“Never incorporate your company in the state of Delaware,” Musk posted on X following the ruling, later adding, “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.”
Meanwhile, in New York …
The fact that Musk and Trump had previously been butting heads with the Aristocracy is not lost on other potential victims of politicized justice. Many, apparently, are now wondering if they should preemptively move to places where contracts are respected and the courts don’t pursue political vendettas. Check out entrepreneur Kevin O’Leary going off on “loser states”:
And here’s PJ Media founder Roger L. Simon on the Trump ruling’s impact:
Judge Arthur Engoron Shot New York
It remains to be seen to what extent New York Supreme Court Justice Arthur Engoron put a stake in the heart of the once great, now beleaguered, city of New York, but he certainly didn’t help when he issued his draconian judgment against Donald J. Trump, ruling the former president and his family pay a staggering $350 million plus in penalties and forbidding them from doing business in the state for several years.
I imagine businessmen across the city and state had anticipated this and have been making plans to exit New York for some time.
That state already has the biggest population outflow, outnumbering even California’s.
Meanwhile, what businessperson—high or low—wants to incorporate in a state where a wanton judge can suddenly decree his or her estimates of their real estate valuations to obtain a loan to be inflated, impose ridiculous fines, and then shut them down?
The financial and political impact of the resulting mass migration is becoming clear to even the legacy media. As ABC News reports:
Five states are currently enjoying better-than-average performance on four key metrics analyzed by ABC News: job growth, personal income growth, gross domestic product growth and gas prices, according to data from the U.S. Bureau of Economic Analysis, the U.S. Bureau of Labor Statistics and AAA.
Four of those five states delivered their electoral votes for Trump in the 2020 election, including Idaho, Texas, South Carolina and Utah. The fifth, Wisconsin, went to Biden.
Meanwhile, 13 states boast better-than-average performance on three of the four metrics. Nine of those states backed Trump, among them Florida and Nebraska.
As the New York Times recently noted, Red States And Blue States Are Becoming Different Countries.
The two previous articles in this series are:
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John Rubino February 23rd, 2024
Posted In: John Rubino Substack