As companies become larger and more profitable, as a general rule they move as much of their workforce as possible to lower-wage locations, whether less expensive states or less expensive countries.

Business in California is booming, which is precisely what drives wages up. Companies leaving allows other new vibrant businesses to hire the old workers.

The state isn't losing out at all. Compared with other countries, California by itself would have the 5th highest GDP in the world. It's a roaring success.

I would say that California has a strong economy in spite of it's government. Not because of it.