...California hasn’t made the comeback Brown touts. The most accurate study, which takes into account cost of living, states that California is No. 1 in the country in poverty. Californians know that a dollar doesn’t go as far here as it does in most other states. Taking cost of living into account means taking reality into account – and by that measure, as Neel Kashkari points out, far too many Californians are suffering, and that is unacceptable.
California is No. 1 in poverty because so many are out of work or working part time. California continues to grow in population, but the job market is not keeping pace. While by the most narrow of definitions unemployment might be lower, every serious person understands that this is largely a result of the worst labor force participation rate since the Carter administration. Not every state is doing poorly. North Dakota has a labor shortage because of its policies.
To be sure, there are parts of the economy, such as the tech sector, that are doing quite well. Have Brown’s policies caused that, or did private initiative build it? The answer is the latter – and in many cases they succeeded in spite of Brown’s policies.
In the last four years, the cost of doing business in California has risen substantially – unless you received a special tax break from Brown. Tax rates, workers’ compensation costs and the costs of regulations have risen. Some of that is the fault of Gov. Arnold Schwarzenegger, but Brown has only made them worse.
Raising the cost of doing business can never lead to business comebacks, just as taking money from someone cannot make them richer. When government increases the price of doing business, that hurts business – it does not help business....
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