Reinhard Kargl, a journalist and owner of Reinhard Kargl Media Services, said that government incentives do not offset California's high costs, which include taxes, insurance, permitting, and regulatory burdens. This statement was made on the social media platform X on February 6.
"And they can't make up for California's higher costs for fees, taxes, insurance, permitting," said Kargl. "the regulatory and labor costs, the cost of compliance with California's excessive legal requirements, bans and union rules."
The post discusses the decline in film production in Los Angeles. Filmmakers are reportedly leaving for other states and countries due to a lack of competitive incentives. Despite its historical significance as a hub for the entertainment industry, California has not implemented policies to retain productions.
Kargl's X post
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In 2024, California saw a 48% increase in car insurance premiums, raising the average annual cost for full coverage to $2,575—11% higher than the national average. According to Desert Sun, this increase is attributed to factors such as the doubling of mandatory liability limits under Senate Bill 1107, rising repair costs, and the financial impact of recent wildfires.
Insurance Business reports that "nuclear verdicts," or jury awards exceeding $10 million, have affected the insurance industry by leading to increased premiums and stricter underwriting standards. Between 2020 and 2023, the median nuclear verdict more than doubled from $21 million to $44 million. This trend has resulted in higher insurance costs for businesses and reduced coverage availability.
According to his LinkedIn profile, Kargl is a journalist and media professional specializing in science and technology coverage. He has experience writing and producing for print, broadcast, and digital media. Additionally, he works as a translator and content creator fluent in English and German.