California Dreamin' or Califonia Comeback?
High taxes and overspending put a powerhouse state on the verge of bankruptcy.
Want proof positive that government policies profoundly impact an
economy? Look no further than California. The Golden State has
everything going for it—vast natural resources, rich agricultural land,
its position as gateway to the Pacific, and innovative high-tech
industries. So why has such a blessed state gone from an economic
powerhouse to the verge of bankruptcy? Government policy. Americans have often looked west for economic opportunity, a better
way of life, and all the latest trends in business, technology, pop
culture, and demographics.
Historically, California has been on the
leading edge of American competitiveness and ingenuity. But these days, the Golden State is setting a bad example. The state
economy has been dragged down by reckless spending, massive budget
deficits, unsustainable government pensions, and one of the highest tax
burdens in the nation. California’s addiction to excessive government
has so badly eroded its business reputation that companies large and
small are leaving the state in droves. Californians continue to see their incomes fall while chronic
double-digit unemployment plagues the state. Meanwhile, other states
with much less to offer are faring better economically. They’re doing so
by enacting policies that boost economic growth, create jobs, attract
businesses and capital, and tackle tough challenges head-on.
Why should Americans care about the fate of California? Put simply,
the American economy cannot fully recover unless California fully
recovers. If it were a nation, California would have the world’s ninth
largest economy. One in eight Americans lives in the state. Our country
needs its energy, ideas, innovation, and workforce. The U.S. Chamber of Commerce recently unveiled the California Jobs and Growth Agenda,
which outlines a path forward for the state and advocates for policies
to strengthen its economy. The Chamber’s initiative includes the release
of an in-depth study outlining the competitive challenges and economic
changes that are reshaping California’s job market. The study, along
with recommendations to reform how the state treats its businesses,
workers, and taxpayers, can be found on a new website: www.TheCaliforniaComeback.com.
California can continue to kick the can down the road, attempt to
spend its way to prosperity, and squander its advantages. Or it can face
up to its challenges, get spending under control, develop its
resources, and implement business-friendly policies. It’s the difference
between California Dreamin’ and a California Comeback. And the nation
has a lot at stake.
http://www.freeenterprise.com/california-dreamin-or-california-comeback