New warning for Newsom: California 'is the next Detroit' ©Image uploaded from CC Composite Editor 'Anti-business', 'extremely expensive', 'smothered in red tape' - these are just some of the insults hurled at California by big business leaders in the last few weeks. An increasing number of companies are fleeing the state for the likes of Florida, Texas and Tennessee, taking their revenue with them. And they are no longer going quietly. Earlier this month, Bed Bath & Beyond sensationally announced it was leaving the state, sparking a very public war of words with Democratic governor Gavin Newsom. New warning for Newsom: California 'is the next Detroit' ©Anadolu via Getty Images Critics say regulations, like increased minimum wages , have made it difficult to drive profits. But to Newsom and his allies, California's booming GDP and long-standing dominance in industries like technology and entertainment prove it is still the most powerful engine for growth in the US. For Manzo, the state's stringent and complex labor laws are stifling businesses and paving the way for 'frivolous' lawsuits. 'If you're a large employer, or if you're a small welding company, or if you're a flower shop, or you're a Dunkin' Donuts franchise with seven employees, it doesn't matter, everybody has to comply with a 1,100-page labor law digest,' he said. New warning for Newsom: California 'is the next Detroit' ©Getty Images Newsom's office then clapped back on social media , making fun of the company's recent bankruptcy filing. 'The company that already went bankrupt and closed every store across the country two years ago? Ok,' Newsom wrote on X. 'I talk to a lot of business owners and it's just really offensive,' said Manzo. 'Everything we have to deal with, and we never get any help or support. They continue to pile on more laws, more regulations, and we have a governor who's spending all of his time on social media.

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