A quarterly magazine of urban affairs, published by the Manhattan Institute, edited by Brian C. Anderson.
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From Rich State to Poor State « Back to Story
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Well, Calfornia biggest problem is too many immigrants from mexico. City Journal doesn't belive this but the Santa Ana school district mainly hispanic has over an 80 percent free and reduce lunch program. Granted, its not California only problem but the traditional Republican approach doesn't always work with minorities, Puetro Rico even has lower taxes for investments than Texas and its average income is only 18,000. If Texas was as white as it was in 1980 its income would be way above New York and California.
CA State Senator Ted Gaines has introduced regulatory reform legislation that would inventory existing regulations, mandate a 33% cut of regulations within 18 months, then require a "one in, one out" freeze on regulations for the next decade, so the regualtory burden does not immediately re-expand. There were other elements to the bill that made it preferential to the reform efforts put forward by the Democrats.
He has been unsuccessful so far, but he at least has the vision to suggest an idea that is of proper scale. Maybe the dim rays of light the author mentioned coming from the CA Dems is a precursor to them adopting serious solutions, such as the Gaines plan.
When comparing Texas and California incomes, don't forget that there is an enormous difference in the cost of living between the two states. I ran the figures about a month ago and it was something like you need $80k in Houston to duplicate the lifestyle of a $100k income in Los Angeles. And I'll bet that includes a significantly nicer house in Texas, too.
So in reality, right now Texans actually live better and have more disposable income than Californians.
Regulations are just hidden taxes on corporations. The Sabanes-Oxley rules that companies must comply with take enormous amounts of time, energy and resources. The folks who have to do most of the SoX compliance are the everyday salaried worker that has had his or her job so discombobulation with segregation of duties that what took a day to do now can take weeks to complete. This hidden TAX or Regulation is a tremendous drain.
The majority of the "marginally educated workers" in the state of California are politicians, by the same token that doesn't speak well of the voters that elect those that are mentally challenged!
Just throw them off. Millions of you, thousands of them.
@B. Samuel Davis, it's all about 55 permanent electoral votes every four years.
Unless the EPA is stopped from implementing and enforcing the farm-dust rule, the water-starved southern counties in the Central Valley will be devastated. Tractors toss up a lot of dust in their path but are absolutely vital for row crops (cotton and vegetables) and for planting new orchards or vineyards. Towns like Mendota with 40% unemployment and Fresno with 20% will be very hard hit.
Your ending analogy is perfect. I know that guy - I met that guy in my youth and fell in love with him, but as we both aged, I saw him for what he was. I ended up leaving him for an Arizona cowboy with a lot more common sense.
Good article. The problem here is that most of those politicians you mention are the spending equivalent of alcoholics. They promise they'll change, but they can't and they won't. Soon they'll be termed out and they certainly don't want to lose the six figure income they'll get from the regulatory boards that are both bankrupting and strangling California. With the Democrats in control of the legislature for forty years, the voters of the state have become the battered wives of these buffoons clinging to them for the morsels they promise wrapped up in racial politics or insider hand outs. The past in the form of pension debts will catch up with them soon and they will have to borrow the money to pay the pensions. Good luck with that.
Hope they read this article in San Diego. As of last May, that area seem to be doing fine. I-5/I15/I10/78 were packed during rush hour; fit and childless couples were deep into their bicycling, jogging, and organic lifestyles; mexican immigrants were tending the nicely manicured lawns; and there were new outlet malls and chic restaurants everywhere.
I thought that area was down and out in the early 1990's, when I left, but it has only gotten bigger and nicer. Maybe our "low taxes-low regulations-as-a-way to prosperity" mantra is not really applicable in the Golden State.
What about Los Angeles. It's instigated a Tax Recovery Program where they're checking tax returns to see if people look like they are running a business. If you run a business for more that 7 days you must pay permit/tax for around $1000. If someone working odd jobs claims income to the IRS - which includes the self-employed/unemployed "honest" person - the city thinks they are owed a tax. It's not just corporations that are being targeted. A parking ticket in LA - usually issued in a poor area will average $60 to $100. Who gets ticketed in those poorer neighborhoods? Calif. is creating a no-win for everyone and its main street is becoming the mean streets.
What is never clear to me after reading these type of articles is whether guys like Tom Gray ever ask themselves, "gee, what happened to the smog that hovered over my city for most of the 80s and 90s and why did it go away?" The answer is simple: regulations. Do guys like Gray think the smog would have gone away on its own? Are some regulations bad? Yes. But some are damn good. And it would probably be a good idea to recognize that fact, particularly for someone whose life in L.A. has been immeasurably improved by the improved air quality in his city.
Not to sound like a broken record, but the poor business climate in California is strictly intentional, as part of an effort to drive Republicans out of the state. Once that is done, the poverty manipulators will not have to deal with any objections as they squeeze the life out of the community. This isn't something that is far off, it is happening now.
And the economic system that is replacing its past successful formula has been shown over and over again not to work. But again, economic success is not the goal of these people.
But, for the sake of argument, let's say that California somehow recovers - a little. All that would mean is that the squeeze would be applied ever more forcefully.
As far as what to do, it would help if the national and much of the local media wasn't firmly behind the efforts to drive the state to ruin, and force Republicans out. There is little chance of that happening since those behind the media in its blindness are firmly entrenched in the ideology of failure, even as it cuts into the bottom line.
What we will see is what we have been seeing, a slow but steady exit from the first world. Democratic politician's pretend efforts at easing that slide are window dressing.
Once you understand the agenda of those in charge, everything that is and has been happening in California makes perfect sense.
Government is as necessary a part of business, as, in your mind, profit is necessary. They pay out to business, else no progress would occur. Do you want examples? The nineties technology boom in California’s “silicon valley”, the internet, the computer chip, all of the information age was based on the participation of government; they were necessary investment by government. That was me creating economic boom, and, now you banking types have stolen from me.
Twenty thousand protested yesterday and mainstream has began to inform the U.S. people. You are going to be forced to pay what you owe. There are people in the streets, originally a hundred, or so, then a thousand, now tens of thousands. It’s nationwide. You are but keyboard warriors whose paymaster is going to be held accountable, and, as they’re as cowardly as you, they’ll roll.
there are other dynamics at play in CA.
the state is overwhelmed with illegals, primarily Mexicans.
LA RAZA comes not to become Americans but to loot. It is a culture that his highly racist, supremacist... "For the Race everthing, for others nothing" LA RAZA... and loathes literacy.
According to CA A.G. Kamala Harris, nearly half the murders are by MEXICAN GANGS.
There are only eight states with a population greater than Los Angeles, where half of all those employed are illegals using stolen social security numbers. L.A. County pays out $600 million per year in welfare to illegals, and is Mexico's anchor baby program. The L.A. County Mexican tax-free underground economy is calculated to be over $2 billion per year.
As far as CA's big ag biz... it relies on slave labor from Mexico. Nearly one-third of all farm workers end up on social services. CA puts out $20 billion per year in social services to subsidize "cheap" labor illegals.
No one pushes for open borders, amnesty, and NO E-VERIFY more than Feinstein, Boxer and Pelosi! Three of the most corrupt and self-serving politicians in history. Boxer hispandered, as does Obama, for the illegals' votes. Feinstein hires illegals at her S.F. hotel. Pelosi does at her St. Helena, Napa winery...!
The fastest growing political party in American is NOT the teabaggers... it is the MEXICAN FASCIST PARTY of LA RAZA.
BOOK: MEXIFORNIA: The shattering of the American Dream
Hey, Vince...let's say you shut down the bankers. Let's say you shut down the guys who support the muni bond business. They are all evil...where the heck do you get the money to run the state? It isn't from the tax payers, they are not earning money at sufficient levels to even meet lowered expectations. Government is the great narrative where everyone advances the argument that each can live upon the government's expenditure. Of course, whatever the government pays out, they have taken from someone else. Those from whom the monies are taken have in fact less to give the next year. See any sign of a death spiral? If not, pay attention. Even if you are a union toady, anything that cannot go on, won't. Kiss your job goodbye.
Blah, blah, blah on regulatory reform...sure, it would help, perhaps a lot...but, no one in this state will see anything improve until it is freed from the monopolistic shackles of forced unionism at the private level and much worse, the public level. Nearly all of California's politicians owe their office to the dues collecting union machine. They toe the line...or else. From the Governor on down, they are all lackey's for the unions. Texas is the Best? Think Right to Work. California is the Worst? Think Darrel Steinberg and his union background. Gerrymandering means nothing will happen that means anything. Nothing. Losses will continue to mount. Streets will remain unpaved, schools will remain corrupt, Policemen will continue to make $175,000 a year matched by Firemen and city managers and collect a sickening amount of pension funds meaning there isn't anything left to actually improve the economy.
Vince Coit, what union to YOU shill for? Your claim they "represent" 99% of Americans is some pipe dream, about to turn into a nightmare. Unions, and their insanely bloated (theiving) pension programmes are a major part of the problem in California. That connexion has been made numerous times.
As to public sector monies being key to progress, again, you're smoking sometbing. Private enterprise is ALWAYS ready to invest in promising technology, and can do so far more efficiently than can government. Trouble is, government regulations and restrictions make any new venture in California rather risky, thus scraing off most new ventures. Me, I'd not start a business in that crazy state, I'll do it in some other.
The writer of this article is spot on, accurately identifying the underlying climate that restrices and drives away business from that state. My state are rapicly persuing the same path as is California, and we are heading down the same abysmal road. We're just about ten years behind. I am already making plans to leave this state's rotten business climate.. one of the worst in the nation, down from one of the best just eight or so years ago.
If we have to rely on a Governor like Jerry Brown to keep the far-left legislature in line, we are lost! The voters of California asked for it and now getting it.
Nice diatribe. The idea of “clean- technology” per se is wrong, it’s technology any technology, and none of you can convincingly argue that public sector investment hasn’t been essential to any progress in the economy based on technological advance.
I love it. Economic development regulatory requirements are seen as “typically long and tortuous”. So, why not just don’t do it? You do it because you know you can steal resources and you can’t resist that temptation, your profit motive.
Just as ““unions squeeze businesses for concessions.”, unions are squeezing all of you tonight. They’re squeezing you low-life banking sorts right where you live, NYC. Get used to it, it a coming trend, nation-wide. The author is clearly frightened of unions, as they represent the views of 99% of the U.S. That is unions represent you, you just don’t realize it in your monolith of myth and theism inspired cognitive dissonance and denial.
The article’s relation of worker social indices to the policies he advises is so illogical it’s insulting to any conscious human, or, rather, again 99% of us who are human. Are you getting the 99% meme?
The article said, “The Obama administration recognized that fact—and did California a favor—when it announced just before Labor Day a delay in tightening federal ozone limits.” And I thank the author for reminding us a real democrat needs to challenge Obama in the 2012 democrat primary.
Tom Gray has no value in his view of society other than simple greed, greed for who he shills for, and, probably doesn’t, even, stand to benefit himself, nor to benefit those nearest to him, by all the stupid policies he recommends and ought to wake up.
California is a blue state and, therefore, hopeless. It's America's Greece, and it will default.
As the article mentions, California ranked DEAD LAST on CEO Magazine's 2011 national annual survey of 500 CEOs on the best places for doing business in the United States.
Sadly, California has consistently ranked DEAD LAST on that survey since at least 2005.