The author of this article failed to mention the $1 trillion state debt.
Nickolai wrote:
By Robert Reich
California is now the liberal capital of America along with is neighbors Oregon and Washington. t will be a Nation within a Nation when the Federal government goes dark in Jan. 2017. In sharp contrast to much of the rest of the nation California preferred Hillary Clinton to Donald Trump by a 2 to margin. They also v**ed to extend a tax surcharge on the wealthy, and adopt local housing and t***sportation measures along with a slew of local tax increases and bond proposals. In other words California is the opposite to Trump land.
The differences go much deeper. For years conservatives have been saying that healthy economy depends on low taxes, few regulations and low wages. Are conservatives right ? At the end of the scale is Kansas and Texas, with among the lowest taxes, least regulations and lowest wages. At the other end is California with among the nations highest taxes especially on the wealthy; the toughest regulations, particularly when it comes to the environment; most ambitious health care system, that insures 12 million poor Californians, in partnership with Medicaid; and high wages.
So according to conservative doctrine Kansas and Texas should be booming and California should be In the pits. Actually it's just the opposite. For several years Kansas economy has been the worst in the nation. Last year their economy actually shrank. Texas hasn't been doing much better. It's rate of job growth has been below the national average. Retail has been down, the value of its exports has been dropping. But what about over taxed, over regulated, high wage California ?
California leads the nation in economic growth-- more than twice the national average. If it were a nation it would have the sixth largest economy in the world. In other words conservatives have it exactly bassakwards . Why are Kansas and Texas doing so badly and California so well. For one thing taxes allows government to invest its people. The University of California is the best system of higher education in America. Add in the network of community colleges, state colleges, research institutions and you have an unparalleled source of research and powerful upward mobility. Kansas and Texas haven been investing to nearly such an extent.
California provides services to a diverse population including a large percentage of immigrants. Donald Trump to the contrary. Such diversity is a huge plus. Both Hollywood and Silicon Valley have thrived on the ideas and energies of the new immigrants. Mean while California regulations protect the health the public health and the states natural beauty. Which draws people to the state - including talented people who could settle anywhere Wages are high in California because the economy is growing so fast employers have to pay more for workers. That's not a bad thing. After all the goal isn't growth but a high standard of living. California is far from perfect a housing shortage has driven rents and home prices through the roof, roads are clogged. and the public schools that were the best in the nation but among the worst --largely due to a proposition approved by v**ers in 1978 that strangled school financing much more needs to be done.
But overall the contrast is clear economic success depends on revenue that goes into public investment and regulations that protect public health and the environment.
And true economic success results in higher wages. California gives lie to the conservative dictum that low taxes few regulations and low wages is the key to success. Trump land should take note...............
By Robert Reich br br California is now the l... (
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