Tuesday, March 13, 2012

California in crisis

California's Greek Tragedy - No one should write off the Golden State. But it will take massive reforms to reverse its economic decline.

 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.


Comment: Different from the Greek tragedy, nobody is silkly enought to blame the commom American currency, the US dollar, for the Californian drama. The culprit is the excessive welfare state, stupid.


1 comment:

  1. When even the U.S. is undertaking this heavy interventionism, we are really lost.

    Which country, today, do you think is the less interventionist? And where do you think we are heading professor, towards more regulation or less? I would guess the later.