Hewlett Packard Enterprise (HPE) is moving its headquarters to Texas, and one economist says The Golden State is dreaming if it doesn't think more businesses are looking to move elsewhere.
HPE's headquarters are currently located in California, where the company's roots go back to the founding of Silicon Valley decades ago. But the company is now building a 440,000 square-foot campus in two five-story buildings in the Houston suburb of Spring.
HPE already has a foothold in Texas, with locations in Austin and Plano with around 2,600 employees combined. Still, this announcement will add to the company's presence and add jobs to the state of Texas.
"Once again, this shows that public policy matters and that states that take the approach of high taxes and cronyism and big government, like California, are seeing the outmigration effect and seeing the consequences for those decisions," says economist Jonathan Williams with American Legislative Exchange Council (ALEC). "And the states that are embracing economic freedom, states like Texas, without income taxes on personal income, continue to be the haven for jobs and economic growth."
He thinks "dozens and dozens" more companies will leave California and go to places with better business climates and better economic opportunity "not just for a business bottom line, but for their employees, [and] for their own economic upward mobility."
Hewlett Packard Enterprise was created in 2015 when the computer hardware pioneer Hewlett-Packard Inc. broke into two parts after years of struggling to keep up with industry trends, such as consumers' shift away from personal computers.