California, Leading the Nation Once Again
From a column in today's Wall Street Journal by my Hoover Institution colleagues Michael Boskin and John Cogan:
California's rising standards of living and outstanding public schools and universities once attracted millions seeking upward economic mobility. But then something went radically wrong as California legislatures and governors built a welfare state on high tax rates, liberal entitlement benefits, and excessive regulation. The results, though predictable, are nonetheless striking. From the mid-1980s to 2005, California's population grew by 10 million, while Medicaid recipients soared by seven million; tax filers paying income taxes rose by just 150,000; and the prison population swelled by 115,000.
California's economy, which used to outperform the rest of the country, now substantially underperforms. The unemployment rate, at 10.9%, is higher than every other state except Nevada and Rhode Island. With 12% of America's population, California has one third of the nation's welfare recipients.
Twelve percent of the nation's population--but a third of the nation's welfare recipients. Once again, the Golden State leads the nation. Only this time, it's over a cliff.
Attempting to console myself, I recall that, during the one year I lived in New York City, during the administration of Mayor David Dinkins, everyone with whom I talked--co-workers, neighbors in the apartment building, people I'd run into at the diner--spoke incessantly about the ungovernability of the city. Things in New York would only get worse. They had to. There was no way out. A couple of years later Rudy Giuliani succeeded Dinkins--and began the transformation of the city.
It if could happen in New York, it can happen in the Golden State.
Can't it?
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Comments:
Jan '11
Re: California, Leading the Nation Once Again
I hit the eject button back in 2002. And while I miss the weather, I don't miss the vibe, the lack of trees, the lack of greenery, and the confined back yards of your typical California-house
Oct '10
Re: California, Leading the Nation Once Again
New York City benefited from an extremely strong man, Rudy, and a Mayor's office that wielded considerable governing authority. Neither the strong person on the horizon, nor the strong governorship exists in California. Also, Rudy's time in office occurred from 1994 to 2001, during which the nation itself had not yet entered the avalanche of decline.
Given the decline of America generally, you are hoping that California will miraculously reverse the trend of the nation within it's own borders.
Sorry Peter, 'not happenin'.
May '11
Re: California, Leading the Nation Once Again
Like Greece, California has some unused islands to sell to the Chinese.
Mar '11
Re: California, Leading the Nation Once Again
Of course it can happen but it will require a governor that is willing to take political risks. It has to be a governor who is willing to sacrifice presidential aspirations by calling out boneheads in Sacramento, and is willing to gut our regulatory nightmare. The governor of California isn't a particularly strong office, but a powerful personality in that office could do a lot of good.
Re: California, Leading the Nation Once Again
Where'd you go, Joe? And is there a vacant lot next to yours?
Jan '11
Re: California, Leading the Nation Once Again
I don't know, Peter. Seems like everywhere you go, the place falls apart.
You weren't planing any moves near Baltimore, were you? I ask merely for information.
Oct '10
Re: California, Leading the Nation Once Again
I suppose it could happen in the Golden State...but only if the people of the Golden State recognize that change needs to happen.
Y'know, the same people who willingly re-elected Dianne Feinstein and Barbara Boxer and Moonbeam Brown.
Mar '11
Re: California, Leading the Nation Once Again
dittoheadadt: I suppose itcould happen in the Golden State...but only if the people of the Golden State recognize that change needs to happen.
Y'know, the same people who willingly re-elected Dianne Feinstein and Barbara Boxer and Moonbeam Brown. · 2 minutes ago
I agree. There is a ray of hope, though. Governor Brown did push for the abolition of redevelopment in California and ultimately got it done. Weird, I know. There is always a reason to dream big.
Oct '10
Re: California, Leading the Nation Once Again
Gus; dreaming big? Is that the same thing as fantasizing?
Mar '11
Re: California, Leading the Nation Once Again
Probably.
Sep '11
Re: California, Leading the Nation Once Again
Peter--
Let's see. You live in New York City--it's an ungovernable civic disaster. You move to California--which is an ungovernable civic disaster.
Have we considered the possibility here that the common element is, well, you?
May '10
Re: California, Leading the Nation Once Again
Looking for correlations here. Mid-1980's to 2005.... Peter, exactly when did you move to California? (chuckle)
But NY is not doing well any longer either- they went crazy as soon as Rudy left. See this.
Re: California, Leading the Nation Once Again
I was recently enjoying a weekend of skiing in Park City. We went to a Kroger-owned supermarket for groceries (think Ralph's out here). I was besides myself to discover every item I bought was easily 20% cheaper than here in California. And that's without the 10% sales tax. And that's in poshy-posh Park City! I guess everything gets more expensive when you're paying for those who don't have to pay for anything. Sorry, Peter, I love my California, but we're planning on retiring to other pastures.
Jan '11
Re: California, Leading the Nation Once Again
Peter Robinson
Where'd you go, Joe? And is there a vacant lot next to yours? · 27 minutes ago
You would not likely want to go 'slummin' to be my actual neighbor, given your sucess. But in a general sense, I bet you'd really like some of the properties and surroundings of Milton, Georgia -- where I'm at now. I also spent five years in Summerville, SC...the Isle of Palms (25 minutes down the road) is a posh coastal town you'd probably enjoy.
Feb '11
Re: California, Leading the Nation Once Again
I'm not any kind of expert, but it is my impression that New Yorkers wanted Giuliani to succeed. They wanted the end product.
I don't think Californians want the end product of what we would call "success."
Re: California, Leading the Nation Once Again
Peter, bankruptcy will concentrate the mind wonderfully. California has to hit bottom before it will get better. In the meantime, . . .
Apr '11
Re: California, Leading the Nation Once Again
Following up on #15, Californians also don't want the type of government that would require them to work harder or to provide incentives to work harder. They want these government benefits. The type of government Californians want, and about 50% of Americans want, necessarily leads to lower growth rates and then finally to the collapse of the whole system. See "Why Progressive Institutions are Unsustainable" (Encounter Broadsides) by Richard A. Epstein.
Re: California, Leading the Nation Once Again
I face a similar calculation every time I leave California for Tennessee. The cost of living in Los Angeles is approximately 50 percent higher than Nashville. Gas is 75 cents a gallon cheaper in Music City. For the cost of a two bedroom condo on the California coast, you can get a five bedroom house on a couple of acres in a tony Nashville neighborhood. And with no state income tax in Tennessee, you get to hold on to roughly an extra 10 percent of your income per year. At a certain point the math trumps the emotional attachment.
Jun '10
Re: California, Leading the Nation Once Again
Build a hammock on the beach, and the lazy will come. Next, comes the demand for more hammocks.
Feb '11
Re: California, Leading the Nation Once Again
Peter Robinson
Where'd you go, Joe? And is there a vacant lot next to yours? · 1 hour ago
Go East, middle-aged man!