tv ABC7 News Getting Answers ABC July 6, 2022 3:00pm-3:30pm PDT
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>> building a better bay area, moving forward, finding solutions, this is abc 7 news. >> you are watching getting answers live on abc seven. we always ask aspirates your questions everyday at 3:00 to get answers in real-time. with the surge in shootings and violent crime, the recent supreme court rulings an increasing number of americans aren't attending the idea out of out of the u.s. but just how easy or hard is it to emigrate to another country? a sociology professor will be joining us in 10 minutes to answer that question. recession fears our fries and san francisco's chief economist says the city to be hitthan mose u.s. you willdone first, the overturf
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roe v. wade has for two by -- has left that has parker rushed by contraception online as skyrocketed 5000% the -- since the ruling. presumably much of the demand has been coming from states banning abortion given this political landscape, will the overruling have a major impact on california specifically our economy? joining us to talk about that is the co-author of politico's california playbook. thanks for joining us today. >> thanks so much for having me. >> you looked into this. could providing access to abortion also be good business for california? >> it depends on who you ask but i will say democrats in businesses where abortion is much more accessible
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than states like texas or georgia or florida and this has come up a few times with governor newsom to the day roe was overturned, he mentioned if you have left california because of what some have called the business unfriendly environments, he says come back. there might be a reason for you to put your headquarters here. whether this will work is up to some debate. economists tell me this is not how businesses determine how to set up headquarters. it is an easy talking point for democrats who have been blasted in the past for being maybe unfriendly toward his nest. that is what some critics say of california. >> what are the deciding factors for businesses usually? i would think it is more money, taxes or regulations. > absolutely. this is something business leaders have mentioned when they move out of california.
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one of the biggest high profile people to leave was elon musk took his headquarters for tesla to austin had -- austin, texas and he says california has too much regulation. taxes are too high and you can save money and other states like texas. some people have thought about it would save money. some businesses have talked about paying for their employees to travel out of state to get an abortion to when you do the math, it is not as lucrative as going to a state with less taxes. it is really for them for businesses, it depends on the tax environment, the economic environment when it comes to deciding where to set up your business. >> let's talk about governor newsom and their other blue states doing this, using this as a selling point in their pitch to businesses to come back or set up shop here. what are some of the potential benefits to businesses to operate in a state that does offered the access?
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>> i should say california is not the only state doing this. leaders in illinois, connecticut , new jersey have made similar pitches to companies in red states. governor murphy in new jersey sent letters to businesses in georgia saying the ruling from roe v. wade would hamper their ability to attract and retain top female talent so they were arguing employees want to live in places where they can access reproductive care and why that might be true, there is a question of whether it is age determinative factor in their employees. blue states are arguing it is good business to live in a state where your employees want to live and where your employees can access the kind of health care they think they deserve it >> more and more uc employees want to work for a company aligned with their own personal values. >> certainly and that is something i think we have seen in results recently.
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even companies who are not saying they are going to leave their states which i have not seen any that are doing that, there are lots of companies signing on to present -- signing on to petitions or making declarations saying support women's right to choose. a number of companies have agreed to pay for their employees to travel out of state to get those services. i think it is something employees expect of their employers. whether it is going to be enough to cause somebody to throw away tax incentives remains to be seen. >> companies generally like having young people, young talent and younger people tend to have a bigger percentage supporting abortion rights so it is potentially a recruiting tool. governor newsom seems to be doing a lot of outreach to red states. he just started airing an ad in california touting california failures. >> freedom is under attack in
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your state. republican leaders are banning books. making it harder to vote. even criminalizing women and doctors. i urge all of you living in florida to join the fight or join us in california where we will still -- where we still believe in freedom to choose. >> what is this about? this does not sound about -- sound like chief salesman for california. it sounds like moved to california. or is it something else? may be for a potential presidential campaign. >> as you and i both know, newsom has said he has subzero interest in running for president but if you were, this is a good tool when it comes to raising your national name identification. governor newsom i think in many ways has tried to position himself in california as a leading defender of liberal values. it does frustrate him to see what is happening with conservatives in other states and frankly he is not facing any
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real competition for the governors race this fall. he has a huge warchest paired a lot of money. he has spent about $105,000 on that ad. a stunt his entire campaign fund, that is a small amount. he might just be using it to get his punches in where he wants to. > he certainly does not need to spend that money here. interesting poll i think i saw yesterday is hypothetical matchups but it seemed like he would do better -- he is out pulling vice president harris should bite and not run again. in matchups -- should bite and not run again in matchups to >> that is a interesting comparison about whether newsom can run against or instead of harris. a lot of pieces would have to follow into place with the democratic party for newsom to run. i think it is highly unlikely he would run in 2024 because he
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would still be in the midst of a gubernatorial term if he wins reelection which he is likely to. is not going to be out until 2026 which sets him up for maybe 2028. but there are lots of people who consider harris to be the arab parent to whoever -- to be the heir apparent. there are a lot of things that need to happen. there is no telling whether he could win. there are a lot of factors. >> a very interesting poll. governor newsom is trending today. not for this but for the fact he is vacationing with family in montana, a stay on california's ban list for state-funded travel over its lgbtq policies. talk about the uproar here because it feels like both the right and left have beef with this. >> gavin newsom last week after the end of the slit of session, it was announced he is going on
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his vacation with his family. typically they say where he is going. last week they did not immediately say where he is going to be. last night cal matters reported he is in montana which is where first partner jennifer newsom's family lives. it is where the two were married. their oldest daughter is named montana pit there was immediately backlash because montana is one of 22 states california prohibits state-funded travel to and that is because of their policies toward lgbtq people. that is been in place since 2016. i think jerry brown signed that law. the governor's office has said it is not fair to apply that wall to him or to conflate them at all some plea because this was a trip he paid for out of his own pocket. the law prohibits state-funded travel. they said they cannot litigate or decide who visits family or where the governor goes on his
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personal dime. none, i don't think it is a great optic frame. >> there are those who say wise this a new story and it feels like depending on how you look at it, it is a complicated picture. thank you so much. appreciate your insight. coming up next, some americans have had enough and they say they are ready to move to another country or consider it should how easy is it to do that? we
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that extent but more people are considering making their permanent residence somewhere else. but where can americans easily moved to? which countries are most hospitable and what is driving this hot topic of discussion? joining us now as dr. duke austin, sociology professor at cal state east bay. thanks for your time. what are the real numbers of americans giving up their passports or living as ex-pats? >> it is too early to say but i predict it is probably not going to be that high. the cost to move somewhere else is great. that includes financial cost but also emotional costs. people have a lot of emotional ties to the places where they grew up. the push factor that folks need to leave their home country tend to be -- you need something greater than a policy change or something of that matter.
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there will be some but i don't think it is going to rise to the level of a trend the way it happened folks leaving the united states for canada during the vietnam war. >> i think the numbers have been going up in the past 10 years. there were a variety of factors. a lot of the economic. usually it is when people need undue financial situation or looking for a cheaper place to retire. what are the easiest countries to emigrate to for an american? >> as an american, it is fairly easy -- i would say middle-class class or upper class american, it is fairly easy to move to most countries. the countries will have some restrictions about how much money you spend in the country or whether you are taxed there were not. but for the most part, americans don't have many obstacles in
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emigrating to other countries. >> let's take a look at top 10 in terms of countries to move to. >> mexico, france, cayman islands, thailand, israel. we have another five. mauritius, south korea, small bard, portugal and bali. these are all over the map literally. talk about what makes a place that is hospitable. is it just that you don't have to have a job lined up or maybe it is a small investment or don't need family? talk about the requirements generally. >> mexico probably tops the list because of the low cost of living relative to the united states and proximity. it is easy to get back to the united states. their places on the list will be popular because of tax havens for the very wealthy.
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or favorable business laws that would let you like bali i believe for example does not tax the income you would make a broad while living in bali so these types of places will provide incentives, financial incentives to move there as well as being in exotic locations. thailand would be an amazing place to live and americans with financial means that could live abroad, cut their living expenses and save tax money could move to places like thailand or bali. >> for those who are serious, how far in advance do they need to plan? >> six months to a year to process visas, living situations, this type of thing should >> how about experts? would you suggest people consult an expert about the different rules and laws? >> yes, absolutely.
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a tax lawyer for those with means is going to be an important person to contact. as well as an immigration lawyer to make sure you have all the correct visas and that type of thing. >> you mentioned those with means. i know some of those countries have -- let's say you invest in 200,000 dollars or portugal, 300 thousand dollars, then you can move there. for those who don't have means, what are their best options? >> those without means, the cost to move is so great it is going to be tougher and that is places that are close. mexico, canada will be more likely for people without means. emigrating takes a lot of resources and folks without
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means -- it is going to be harder for them wherever they go. >> some people are leaving. immigrants continue to come to the u.s. as well of course. do we continue to gain more people than we lose? does the world still see us as this land of opportunity they aspire to come to? >> interesting, we are at a net loss for countries in mexico and central america. there are more people leaving the united states to live in mexico than there are people coming in. overall, there is still a net gain but in terms of immigration to mexico in particular, there is a net loss. >> that is interesting so where are the folks come from? >> a lot of immigration from asia. from the south pacific.
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and further south in central america. honduras, ecuador, guatemala. >> thank you so much. that was an interesting look at immigration, dr. duke austin of cal state east bay. thank you. coming up next for my fears of a recession are looming and san francisco's chief economist says the city is really at
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>> economists have been warning about the potential for the u.s. to slide into recession. the concern comes amid soaring prices for gas and groceries and wages not being boosted to keep up. san francisco's chief economist warns the city could be especially vulnerable in recession even more so than many others across the country. . that chief economist is joining us to explain all this. thanks for coming on the show. >> it is my pleasure. nice to see you. >> first of all, what is a recession? we know the inflation part. everything is getting more
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expensive and we are paying more for everything. what is the big r? >> ideally, the economy is growing which means the total amount of values of goods and services is increasing every quarter but when it shrinks and goes any reverse for two quarters in a row, that is the technical definition of a recession. >> when that happens, businesses shrink and they cut jobs and payrolls and people find themselves out of work and all that. nobody wants to see that but you were quoted in an article saying you see the fed's plan to raise interest rates as the likeliest trigger for a recession. explained that. >> recessions are a normal part of economic life. periods of expansion followed by periods of recession. we had a very brief recession at the start of covid when the economy was shut down and we have had two years of restrung oath nationally since then -- pretty strong growth nationally since then. because things seem to be
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overheated, the federal reserve has committed to raising interest rates to get inflation under control and that is the kind of thing, rising interest rates, that have caused recessions in the past. >> if we are heading into a recession, is san francisco particularly vulnerable? >> there are a couple reasons why we think that may be the case. san francisco has had a weak recovery compared to other places. we lost more population than any other major city through 2021. our unemployment rate is very low but that is partly because a lot of people are left and there are not a lot of unemployed people left for businesses to hire so it is more of a supply-side problem then is so much growth on the hiring site. one thing is a recession would head is worse because our economy has been weaker than other places. the other is our economy is so dependent on the health of the tech sector.
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rising interest rates particularly affect the tech sector. we have already seen major declines in venture capital. a lot of the tech companies in san francisco and the bay area, they need continual funding and that is going to get harder to get as interest rates rise to >> so what is the solution? they need that funding and it would be more expensive to borrow money and vcs are getting tighter with their investments so what to do? >> generally companies and a that situation tend to slow down their hiring. they tend to be more cautious with their money. there is less spending. there are less startups formed. what that means for the regional economy as a whole is less hiring and less growth. >> you mentioned the fact san francisco is so tech depend and during the boom times, that is great. but now, what does this mean? should we be looking at diversifying? trying to attract other types of
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businesses? is the city owing things to make that transition? >> a lot of that depends on how long the recession happens and it has not started yet. we are still seeing job listings in tech. the recession if it comes is several months away as far as jobs are concerned. if it is a mild recession, it probably is not going to significantly change the city's economy and the overall structure of the economy in the area. it is going to be a blip. >> the city was a little slower than other cities to come back from the pandemic. even now. even if there are session does happen, is that the double whammy? >> it is one of the things that could make it work for it -- make it worse for us. we have not had people move back to san francisco. most of our signs of economic activity are weaker despite low
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interest rates and a supportive macroeconomic environment for growth. if it is not like that and interest rates are higher and if we go into recession it is going to be that much more challenging for the city to recover to where it was before the pandemic. >> the stock market had a bad first half of the year. what does that mean for our local economy? >> that is directly tied to venture capital. from the stock market, particularly tech stocks are booming, that makes venture capital a good investment and those funds are flushed with cash. when it does not look like tech stocks are good investment, venture capital is not a good investment. companies that are already public who would have been wealthy with her stock prices high are starting to look at cash more carefully when their stock prices are low. >> armed with all this information and your will as chief economist for the city, what is your advice? >> my advice is to be more
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sensitive to changing economic additions should dashed economic conditions. job numbers look great right now. 1.9 unemployment is the lowest we have had but things can change quickly and i do expect things to change over the next several months. >> san francisco's chief economist. thank you for the interesting combination -- interesting conversation. >>
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potential political fallout from governor newsom's vacation in montana. world news tonight with david muir is coming up next. tonight, alarming new details about the mass shooting suspect in illinois, and now word he may have been considering a second attack while making his escape. robert crimo in court today, showing no emotion, charged with seven counts of murder. the prosecutor says he confessed to the attack, telling people he dressed in women's clothing and covered his tattoos with makeup so people wouldn't recognize him. allegedly armed with a semiautomatic rifle. authorities say he drop md it as he escaped from the scene. police recovering magazines and shell katings from the rooftop where the alleged gunman opened fire. the sheriff says the suspect fled to madison, wisconsin, where he considered another shooting there. the prosecutor promises more charges are coming. alex perez is in highland park. one of the many
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