In the interview, Mr. Kotkin identifies several issues that are contributing to the exodus: state and local restrictions of development causing an artificially limited housing supply, especially in coastal areas; trade-and-cap law AB32 which will raise the cost of energy (California's electricity prices are 50% higher than the national average); restrictions on oil drilling; water restrictions which are endangering Central Valley farmers; an unfavorable business tax environment; and a steeply progressive income tax system where even middle class workers pay a higher rate than millionaires in 47 other states.
Where are the people (and jobs) going? According to Mr. Kotkin, to the "growth corridors" of the Gulf Coast, the Great Plains, the Intermountain West, and the Southeast. These areas have lower costs of living, lower taxes, less regulation and natural resources. Salt Lake City is cited as an example.
It's an interesting article and a wake up call for California.
Here'a a link to the article: http://online.wsj.com/article/SB10001424052702304444604577340531861056966.html