California, Here it Comes...Down As It is Done!

I can really empathize about state government regulatory burdens on Californians after living there for over fifty-six years and have since moved to Dallas, Texas. I cannot, however, sympathise with the state residents resolve to keep spending beyond their means. I recently read an Editorial in the Wall Street Journal written by Dr. Bradley Allen who is currently running for Congress in California's 24th District in the Republican race. He had lamented, "We Californians could learn how to grow from the Lone Star State." It called out a list of successes for his former home state of Texas [Houston] while then offering a whole litany of reasons for their failure in California.

The California vs. Texas comparison that Dr. Allen pointed to were: 

• Energy Industry - no fracking and horizontal drilling in gas and oil fields.

• State Business Income Tax - high at 4.1% (av. CA state rate)

• Utility Costs - electricity 50% to 88% higher for renewable-energy mandate.  

• Gasoline - 70 to 80 cents per gallon more due to CA state blending fuel laws.

• Job Growth - Los Angeles added 1 Mil people (1980-2010) & lost 165K jobs.

• Poor People - 42%+ in CA than TX. 17.6% L.A. poverty rate nation's highest.

• Regulatory laws - so overly burdensome they had driven business out of state.

What's truly remarkable about this editorial was it thoroughly covered the glaring differences with solid indisputable facts. It further argued quite forcefully for pro-growth policies that would spur on the California economy. I was absolutely sold on his editorial analysis until I read the last paragraph. It succinctly encapsulated in just a few sentences why California will remain moribund in its own excrement, not capable to escape its inevitable demise:

Dr. Allen stated besides the cited state parallels, he complained about job creation killers like Obamacare which must be addressed; or with respect to the onerous business Federal income tax of 35% with equally high small business S-Corp income tax, they restrict business expansion and affect job growth. He further complained about Federal regulations and energy costs too. His recommendation was, "Washington should follow Texas' lead and pass pro-growth reforms."..."It's not big verses small government. It's government that works for us not against us." [No Bradley, you are wrong. Take off your 'rose-colored' California glasses. It really is BIG government spending that does works against us.] 

The typical 'California dreaming' syndrome promotes government largess as the answer to all social problems and civil matters. If the undocumented illegal aliens need welfare or legal services the state provides them. If special interests need funding for projects the state provides them. If the state needs more monies to meet these budgetary demands the state floats new tax bonds or just passes tax increases.

The 2013 overall California state budget deficit has ballooned to $778 Billion plus unfunded state pension funds for $200 Billion. That's almost a Trillion dollars. Is this state looking at a 'too big to fail' Federal bailout? It's a possibility for a bankruptcy filing with a Washington style bailout as the California legislature's spending spree on the backs of state taxpayers is painfully coming down to a bitter showdown for a default and bond credit rating downgrade to junk.

Why do other states have to suffer to 'Bail Out' California for their free-spending programs?  Let them Go Bankrupt!