Thursday, July 21, 2011

California's no longer the golden state

I was born in California. I'm old enough to remember how proud I was when the state passed New York to become the most populous in the nation. It was a good thing to be from California--home of great universities, Disneyland, the Pacific Ocean and surfing, Hollywood, and the Byrds (OK, I had to stick that in there). But the wheels have come off since the golden days in the Golden State.

In the first decade of the 21st century, California's population grew by only 10%, the smallest population growth in its history as a state. It will not gain any seats in Congress or electoral votes for the first time in its history. Much of its population growth in the last 10 years came from immigration from Mexico, both legal and illegal. For the first time, California had a net outflow of population among American citizens. Think about that--people who have the means are getting out of the state.

What happened? All of California's natural assets are still here. Its climate is just as wonderful, its resources as abundant, its agricultural productivity as great, its infrastructure as developed. The answer lies, as you probably have guessed if you've read any of my earlier blogs, in politics.

Lefties and their allies have persistently put roadblocks in front of those who wanted to get ahead in this state. The environmental movement has become harsh and strident. It threatens to strangle the state's economy in a crazy and confusing monstrosity of regulations. The state's vast oil and natural gas potential on the continental shelf has been off limits for years. Environmental groups and others have become masters at tying up economic development in court.

But that’s not the only reason for people to give up on California. Non-environmental regulations have mushroomed as well. It can take months to obtain permits to open even the simplest business. Is it any wonder that the state's unemployment rate, 11.7%, is one of the country's highest?

I think the biggest cause of California’s dysfunction has to do directly with its politics. Let’s see . . . who runs the state government? Oh yeah, Democrats. And not your run-of-the-mill variety. Out here we have grown a lethal, spend-crazy, anti-business, out-of-touch-with-reality set of politicians who see more taxes as the solution to all problems. An ever-growing political class, largely funded by public service unions, has hugely increased the size and cost of government. California now has among the highest tax rates in the country as well as some of the greatest budget deficits.

It’s pretty discouraging now to live in California. No quick solution exists. My guess is that it will take severe economic conditions to wake up the voters, who will then toss out the entire dysfunctional legislature and start over.

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