States Recruit Worried Californians - WSJ.com: "Several Western states are launching aggressive efforts to poach jobs, talent and industry from California, sensing an opportunity to capitalize on the Golden State's current political and financial woes."
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Pretty heavy irony, California having been the destination state of dissatisfied easterners and midwesterners for the better part of the 20th century. It was a place of unlimited opportunity for people with ideas, creativity, ambition, or just the willingness to work hard. No outside forces can be blamed for the crash of the Golden State. The place has been bankrupted by its own politics and policies. What a tragedy.
There is a moral to the story: the working, striving, middle class is the key to prosperity and social stability. If government treats them like dirt--taxing them to death, making businesses miserable, mocking middle class social values--it is the beginning of the end.
There is also a lesson for the folks running the US right now. They may want to take a few minutes off from their fantastic spending orgy, and their planned anti-carbon and anti-business environmental policies, to think about the tax impact on the middle class a few years from now. This much borrowing will lead to inflation. A loaf of bread will cost ten bucks. Social security, medicare, and every single pension fund will be overloaded with baby boomers--that is just inevitable. At some point the Chinese won't want to lend us any more money. And that's when the federal government will be asking us for huge tax increases. The US will have become California.
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