The California Problem

George Will has a good albeit scary column on the political economics of California. He calls Arnold Schwarzenegger, “the best governor the states contiguous to California have ever had.”
Here’s a sample:

Liberal orthodoxy has made the state dependent on a volatile source of revenue — high income tax rates on the wealthy. In 2006, the top 1 percent of earners paid 48 percent of the income taxes. California’s income and sales taxes are among the nation’s highest and its business conditions among the worst, as measured by 16 variables directly influenced by the Legislature. Unemployment, the nation’s fourth-highest, is 11.2 percent.

I’m worried that the issue isn’t simply one of balancing a budget. I’m afraid that it’s deeper than that. It’s that the model of California’s society is fundamentally broken. Big government and high taxes combined with massive immigration and multiculturalism.
I can’t help but think of New York during the 1970s when the city experienced a dramatic downfall. Crime exploded and the population imploded. In 1965, there was a blackout and the city was calm. Twelve years later, there was a blackout and massive looting.
Think of all those great 70s movies that showed the grit and grim of New York, or Howard Cossell saying during the World Series, “There it is, ladies and gentlemen, The Bronx is burning.”
This could be California’s future.

Posted by on May 5th, 2009 at 1:22 am


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