January 10, 2010

SPENDING, SPENDING, SPENDING...:

Fiscal liberalism has tarnished California gold (George F. Will, January 10, 2010, Washington Post)

It took years for liberalism's redistributive itch to create an income tax so steeply progressive that it prompts the flight from the state of wealth-creators: "Between 1990 and 2007," Voegeli writes, "some 3.4 million more Americans moved from California to one of the other 49 states than moved to California from another state."

And the state's income tax -- liberalism codified -- intensifies the effects of business cycles on the state's revenue stream: During booms, the stream surges and stimulates government spending; during contractions, revenue dwindles, but the new government spending continues. Voegeli says that if California's spending had grown no faster than population growth and inflation from 1992 to 2006, it would have been $65 billion less in 2006, and per capita government outlays then would have equaled not those of Somalia or Mississippi but of Oregon, which is hardly "a hellish paradigm of Social Darwinism."

It took years for liberalism's mania for micromanaging life with entangling regulations to make California's once-creative economy resemble Gulliver immobilized by the Lilliputians' many threads. The state, which between 1990 and 2007 lost 26 percent of its factory jobs and 35 percent of its high-tech manufacturing jobs, ranks behind only New York, another of liberalism's laboratories, in the number of outward-bound moving vans.

Posted by Orrin Judd at January 10, 2010 9:16 AM
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