Tuesday, June 16, 2020

California's Big Government


California provides a good test of whether big government is the right approach to solving social and economic problems.This is based on an analysis of Victor Davis Hanson.
California has the most billionaires of any state. That’s a start.
It has the highest state income tax rates, the highest gasoline tax rates, and the highest sales tax rates. Should be plenty of money to solve problems, right?
Well, actually not. Whatever’s taxed you get less of. High taxes rates on income results in less income.
Let’s see other results:
-- California’s public schools rate in the lowest 10 percent of the nation’s test scores.
-- With welfare payments high, one-third of the nation’s welfare recipients live in California.
-- 140,000 people in California live on the street. 
-- California provides considerable help to the poor and homeless. Whatever you subsidize, you get more of. Surprise, surprise, one-fifth of the nation’s homeless live in California.
-- One-fifth of the population is below the poverty line. Generally, California has the largest underclass of any state.
Maybe California has adopted the French approach. When a theory and facts are in conflict, the French tend to favor the theory. Theory says that big government is the best approach to equitable prosperity. The facts say otherwise. California continues to go for the theory.
Every year for the last twenty years, more people have left the state than moved into it. The ones who departed were wealthier.
About those billionaires who remain? Who knows, maybe the liberal politicians are good to them because they want to get rich too.