California Gov. Gavin Newsom, a Democrat, praised The Walt Disney Co. for abandoning a $1 billion project in Florida and called the decision a “victory”.
Disney executives have cancelled plans to build an $1 billion complex in Florida. This would have resulted in 2,000 new jobs, with an average wage of $120,000 per year.
This move is part of a fight between Disney and Florida Governor. Ron DeSantis (R).
As Breitbart News reported:
The battle between Disney, and Gov. Ron DeSantis’ (R) battle with Disney appears to have gone beyond the initial tiff about the Parental Rights in Education Law, which Disney was adamant to fight, and went full groomer back then. DeSantis’ administration dismantled Disney’s self-governing status. The Disney-controlled board was replaced by the Central Florida Tourism Oversight District. Members of the district were approved by the governor.
Disney, which had been fighting DeSantis over a 30-year agreement that Disney sneaked in before the board approved by DeSantis took control in February, escalated the battle in April when it filed a lawsuit, claiming to be the victim of “government retaliation” and the governor’s targeted campaign.
After announcing that it would delay construction by four years, the company made the decision to abandon the Florida complex.
Disney’s chairman of theme parks and consumer products, Josh D’Amaro cited the “changing business environment” as the reason for abandoning the project in an email sent to employees Thursday.
Newsom declared “victory” in the Golden State, and took aim at Florida’s authoritarian policies.
Newsom stated that “authoritarian policies do have consequences.” This announcement is a win for California and the tens and thousands of Disney workers who now know that they can live in an environment where they will be respected and feel safe. Disney has invested billions in California and we are looking forward to increased investment and growth.
Disney’s decision to build the Florida complex came the same week as Disneyland resort president Ken Potrock held a meeting with Orange County business and civic leaders in California to discuss the company’s DisneylandForward expansion plan for the Anaheim Disneyland Resort over the next thirty years.
DisneylandForward is a multi-decade, significant investment for the future. Potrock said to the attendees that this is the next-generation of the Disneyland Resort. When Disney invests in the future, everyone wins.
Anil Puri, a Cal State Fullerton professor, said that the DisneylandForward plan would create 4,500 jobs in Anaheim, generate $11 million in taxes, and produce $1.1 billion of economic output for every $1 billion spent.
Newsom’s jab at DeSantis was the latest of a series that the two governors traded in the last year.
While Newsom is focusing on DeSantis’s performance, the latest U.S. Bureau of Labor Statistics data (BLS), shows that Florida has a better economic situation than California.
BLS data released on Friday showed that California’s unemployment rate is two percentage points higher than Florida’s.
Florida’s unemployment is at 2.6 percent while California’s is 4.5 percent. This is over one percent above the national average.
According to the “Sahm Rule,” Newsom’s California also is in a recession. The rule states that “when unemployment rates rise by a half-point above the lowest rate of the previous 12 months, an economy is in or about to enter a recession.”
California’s unemployment rates has increased from 3.83 percent to 4.08 percent as of August 2022.