**Posted by Phineas
Now here’s something to be proud of. Thanks to nearly 50 years of Democratic control of the legislature and the legislators’ kowtowing to public unions in return for donations and support, the state of California –the Golden State, the land that inspired untold millions of dreams and created unheard of prosperity for its people– is officially the worst-run state in the nation:
Debt per capita: $4,008 (18th highest)
Budget deficit: 20.7% (17th largest)
Unemployment: 11.7% (2nd highest)
Median household income: $57,287 (10th highest)
Pct. below poverty line: 16.6% (18th highest)
California is 24/7 Wall St.’s “Worst Run State” for the second year in a row. Due to high levels of debt, the state’s S&P credit rating is the worst of all states, while its Moody’s credit rating is the second-worst. Much of California’s fiscal woes involve the economic downturn. Home prices plunged by 33.6% between 2006 and 2011, worse than all states except for three. The state’s foreclosure rate and unemployment rate were the third- and second-highest in the country, respectively. But efforts to get finances on track are moving forward. State voters passed a ballot initiative to raise sales taxes as well as income taxes for people who make at least $250,000 a year. While median income is the 10th-highest in the country, the state also has one of the highest tax burdens on income. According to the Tax Foundation, the state also has the third-worst business tax climate in the country.
The best run state? North Dakota. In fact, the top five are run by fiscally conservative Republican governments, while the three worst of the bottom five are dominated by liberal Democrats. I detect a pattern here, and it has much more to do with governing philosophy than with the letter after the politician’s name.
The analysis given after the data is horse feathers, though. Yes, California did suffer heavily from the economic crisis that hit in 2008 and the resulting recession. But that does not explain the slowness of our recovery. That, instead, is explained by the poor policies followed by the government in Sacramento, which has done everything right — if the objective was to choke of economic growth and job creation. Borrowing too much money, then spending it on on padded public pensions and useless projects like high-speed rail; raising already-high taxes on the very people who create the jobs we desperately need, thus leaving no money for reinvestment and driving those people out of the state or out of business; and a regulatory environment that can only be described as miserable. Our “leaders” have taken us straight into the pit and they show no sign of changing course.
UPDATE: Walter Russell Mead explains far better than I did why California’s recovery is so weak:
The problem with California has never been that bad policies put the state in a permanent recession. Rather, bad policies have meant that the state and its residents suffer more than average when recessions come, and that they benefit less than they should when the good times return. Some of the world’s most dynamic people and industries are found in California, but poor governance means that the state as a whole keeps losing ground when compared with the country as a whole. That is California’s real problem, and the Times would serve its readers better by analyzing the forces holding California back from achieving its magnificent potential instead of hailing a modest and cyclical economic recovery as some kind of proof that the state’s model ‘works’.
Left unspoken: We keep electing those responsible for the poor governance.
(Crossposted at Public Secrets)