[Guest post by DRJ]
Victor Davis Hanson says California has “the largest annual deficit with one of the highest sales tax and income tax rates in the country.” However, because of its past policies, he suggests California has little hope of solving its current economic problems and he paints a bleak future in his California version of The Christmas Carol:
“It is not as if California decided about 10 years ago to invest to ensure we had state of the art freeways, university campuses, ports, airports, dams, canals, and power infrastructure. Instead, it was too often redistribution rather than investment. It is not like we can get out of the mess by simply stopping all construction when a vast public work force with pension and salary claims, along with entitlements and welfare, take the lion’s share of the budget.
Meanwhile, tens of thousands whom we used to count on to pay our nearly 10% state income rates continue to flee the state. All the past sleight-of-hand borrowing, reliance on inflated real estate, lotteries, bonds, etc. have already been tried. Now we hit the wall of reality, whose iron-clad law — when you have no money, you really have no money — cannot be so easily demagogued away.”
The rest of us may be joining you soon. Good luck, Californians.