Barely a month into Democrat Abigail Spanbergers governorship, Virginia is already watching major employers head for the exits.
According to RedState, aerospace giant Boeing has announced it will move its Defense, Space and Security headquarters out of Arlington, Virginia, and back to its longtime base in St. Louis, Missouri. The decision unwinds a 2022 relocation to Arlington that took place under former Republican Governor Glenn Youngkin, who spent his term aggressively courting major corporations such as Eli Lilly and Amazon in an effort to make the commonwealth a premier destination for investment and jobs.
Steve Parker, CEO of Boeing Defense, Space and Security, framed the move as a strategic realignment that will put top leadership closer to core operations in the Midwest. He said in a statement that the relocation will allow company leaders to work side-by-side with coworkers in the St. Louis area, adding, The headquarters move, coupled with our senior leaders being based at and spending their time at major engineering, production and manufacturing centers across the U.S., reflects our continued focus on disciplined performance across our business.
Boeing also announced plans for a multibillion-dollar investment in the worlds most advanced combat aircraft production facilities in locations such as St. Louis. That capital, and the high-paying jobs and secondary economic activity that come with it, will now bypass Virginia entirely at a time when the states new leadership is signaling a sharp turn toward progressive economic and regulatory policies.
Conservatives in the state have been quick to connect the dots between the political shift in Richmond and the corporate retreat. One viral post put it bluntly: VA Gov Democrat @SpanbergerForVA just lost @Boeings HQ in Arlington, VA Boeing announced on Wednesday that it will shift its Defense, Space and Security HQ back to St Louis after relocating to Chicago & then Arlington, VA, in 2022 Companies fleeing VA https://t.co/MmqJ5ZjMxy.
For many on the right, this is a familiar pattern: Democrats gain control of a state, layer on new taxes, mandates, and regulations, and then act surprised when employers and residents vote with their feet. California is the most obvious cautionary tale, and critics argue Spanberger and legislative Democrats are rapidly transforming Virginia into a kind of California of the East, complete with the same policy mix that has driven out businesses and middle-class families from the West Coast.
Since taking office on January 17, Spanberger and her allies have advanced a raft of measures that raise the cost of living and doing business in the commonwealth. Their agenda includes hiking the minimum wage to $15 an hour, mandating expanded paid sick leave, imposing new taxes on food deliveries, and even tacking on a mattress recycling feeeach one a seemingly small burden that collectively signals a more hostile environment for employers.
The legislative push has been matched by an aggressive use of executive power. In a burst of early executive orders, Spanberger rescinded Youngkins 287(g) directive that had instituted cooperation with Immigration and Customs Enforcement, reprioritized diversity, equity and inclusion initiatives in state policy, and launched broad affordability efforts that lean on progressive-style housing regulation reviews and zoning changes rather than market-driven solutions.
The contrast with the recent past could hardly be starker. Just 18 months ago, CNBC named Virginia Americas Top State for Business, a recognition that coincided with Youngkins efforts to reverse an outward migration trend that had taken root under his Democrat predecessors, Ralph Northam and Terry McAuliffe, by making the state a magnet for employers rather than a jurisdiction to escape.
Youngkin at the time highlighted the shift in momentum, stressing that corporate leaders were once again looking favorably on the commonwealth. We are seeing real changes in that trend, Youngkin said then. Businesses choose every day, Where am I going to invest and grow? and they are choosing Virginia now more often than not.
With Boeings departure and billions in investment now headed elsewhere, that optimism has been badly undercut, and the early days of the Spanberger administration are raising serious questions about whether Virginia will cling to its pro-business reputation or follow blue states down the path of higher costs, heavier regulation, and economic stagnation.
For many conservatives, it already appears that the promising picture painted under Youngkin just got spat on by Abigail Spanberger and her fellow Virginia Democrats, and Boeings exit may be only the first of many such warnings.
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