California’s Vicious Circle Continues

California recently was ordered to free 55,000 prisoners because it can’t afford to hold them. It’s yet another manifestation of essential government services getting crowded out by wealth redistribution.

As pointed out below (under the Jan. 24, 2010 entry), in the past decade California state pension costs skyrocketed 2,000 percent. Many union workers can retire at age 50, with 90 percent of their pay, for life. 15,000 of them get more than $100,000 per year. That includes life guards.

In 2009, at least $3 billion was diverted from other government services to pension costs.

As Walter Russell Mead writes, “California’s public unions are sucking the state dry — like a parasite killing its host.” He quotes the “great Louisiana prophet of the blue social model Huey Long: ‘If you aren’t getting something for nothing, you’re not getting your fair share.'”

That so sums up what those on the left stand for these days. They’re always talking about getting their “fair share”. Most of the time, they mean getting it for nothing. (Typical is when some interest group gets free government benefits, and some other interest group screams that they should be getting the same or similar benefits in order to get their “fair share”.)

As explained here, California is caught in a vicious circle. “Constituencies sympathetic to businesses are leaving California in increasing numbers. Meanwhile the state’s generous social welfare programs pull in lower-income people – both from the within and outside the United States – who typically vote against the interests of businesses. With fewer pro-business and more anti-business voters (i.e. fewer Republicans and more Democrats), the result is even more regulations and higher taxes, driving even more businesses out, and so on.”

“Californians have slipped from having the 3rd highest per capita income in the country in 1959, to the 13th highest now. What’s their solution to reverse the trend? Measures to make the state business-friendly again? No. Most of the state’s elected representatives are trying to remedy the situation with more tax increases; part of the vicious circle.”

“So businesses will flee the state even faster. Fewer businesses will want to move there. Entrepreneurs won’t want to set up shop there.”

And its status as a failed state will be driven home even further.

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