The Golden State Turns Blue, in the Red

ABC has called California the “front line of the recession.” I would add that if you want a sense of what several years of the new national liberal “stimulus” splurge and budget can do, just look at CA. Here are some facts.

CA has the lowest credit rating of all 50 states. It has a $42 billion deficit. The top 10 counties for home devaluation in the country are all in CA. Unemployment just surpassed 10% (for the first time in 26 years) -- not counting illegals who make up some 10% of our population. CA has been hemorrhaging jobs & businesses (no doubt due to rising taxes & worsening services) – as an example, in 2006 over 100 movies were made here, but last year fewer than 10. And now our taxes are above 10% -- which will further drive businesses out of state, or the country.

Speaking of services, the infrastructure has been so neglected that the roads compare with third-world conditions. Wonder why there are so many SUV’s & 4-wheel drives here? Besides the vanity factor, you practically need one to navigate the roads without losing your suspension. And emergency rooms have been closing right and left because of hospital insolvency due to uninsured illegals, etc. using them without paying. Which leaves the rest of us risking death if we need to get to an ER in rush hour, or in a regional disaster like the expected “Big One.”

CA is a solid blue state, and the liberal Democrats have held sway for too long in the legislature. To get a sense of the quality of our state legislators, just look at the quality we send to Congress (Pelosi -- I pray for Obama's health every day with Biden & Pelosi next in line). Occasionally they’ve been held fiscally responsible by a strong fiscally conservative governor. Such was our hope for Arnold, who has, however, proven only physically strong, and strong on promises, but in the end has caved and become one of the “girly men” he once derided. After defeat of his propositions, he’s now admittedly turned into just following the polls, or “will of the people,” which isn’t leadership. The people and legislature don’t appear to care about or understand the sinking ship. The people just keep voting for more billion-dollar bond propositions to build bullet-trains, etc. Or they vote on propositions according to whoever has a lopsided advantage in advertising funding, or for every goodie on the ballot. Anyone with decent options is leaving the state before it sinks – not due to the San Andreas Fault, although that could put us over. The parallel at the national level is striking – a spendthrift, business-taxing liberal legislature with a complicit executive.

“Death of the Dream,” (Joel Kotkin, Newsweek March 2,
http://www.newsweek.com/id/185791) documents some of California’s ills, their causes, and slim hope. Outmigration has grown every year since 2003, and expected to be over 200,000 by 2011. It would be greater but many can’t sell their homes, and are held prisoner by their mortgages. It cites a one-two punch of “bubble dependency” – first the dotcom bubble in the Bay Area that first hit the CA budget, and contributed to Gray Davis’ recall due to his & the legislature’s inability to adjust. Then the housing bubble, with prices increasing 20% annually & excesses of speculation & sub-prime loans. CA hosts the big mortgage hawkers, and “... the whole economy seemed to revolve around real-estate speculation, with upwards of 50 percent of all new jobs coming from growth in fields like real estate, construction and mortgage brokering.” When that bubble burst, the real-estate economy “evaporated overnight,” and the legislature & governator failed to anticipate or cope.

The article goes on to blame the inability to cope with the “politics of narcissism.” “California, like any gorgeously endowed person, has a natural inclination toward self-absorption. It has always been a place of unsurpassed splendor; it has inspired and attracted writers, artists, dreamers, savants and philosophers. That's especially true of the Bay Area—ground zero for California narcissism and arguably the most attractive urban expanse on the continent; Neil Morgan in 1960 described San Francisco as "the narcissus of the West," a place whose fundamental asset was first its own beauty, followed by its own culture of self-regard.” It cites various “remarkable public achievements” inspired by this narcissism.

“Today the politics of narcissism is most evident among "progressives." Although the Republicans can still block massive tax increases, the predominant force in California politics lies with two groups—the gentry liberals and the public sector. The public-sector unions, once relatively poorly paid, now enjoy wages and benefits unavailable to most middle-class Californians, and do so with little regard to the fiscal and overall economic impact. Currently barely 3 percent of the state budget goes to building [or repairing] roads or water systems, compared with nearly 20 percent in the Pat Brown era; instead we're funding gilt-edged pensions and lifetime guaranteed health care. It's often a case of I'm all right, Jack—and the hell with everyone else.”

The most recent ascendant group are the gentry liberals, whose base lies in the priciest precincts of San Francisco, the Silicon Valley and the west side of Los Angeles. Gentry liberalism reflects the narcissistic values of successful boomers and their offspring; their politics are all about them. In the past this was tied as much to cultural issues, like gay rights ... and public support for the arts. More recently, the dominant issue revolves around environmentalism.

Green politics came early to California and for understandable reasons: protecting the resources and landscape of the nation's loveliest landscapes. Yet in recent years, the green agenda has expanded well beyond that of the old conservationists like Theodore Roosevelt, who battled to preserve wilderness but also cared deeply about boosting productivity and living standards for the working classes. In contrast, the modern environmental movement often adopts a largely misanthropic view of humans as a "cancer" that needs to be contained. [ -- or removed -- I note this theme clearly portrayed in the recent remake of “The Day the Earth Stood Still.”] By their very nature, the greens tend to regard growth as an unalloyed evil, gobbling up resources and spewing planet-heating greenhouse gases.

In “...the Salinas Valley, ... local progressives—largely wealthy people living on the Monterey coast—have opposed, for example, the expansion of wineries that might bring new jobs to a predominantly Latino area with persistent double-digit unemployment. As one winegrower told me last year: "They don't want a facility that interferes with their viewshed." For such people, the crusade against global warming makes a convenient foil in arguing against anything that might bring industrial or any other kind of middle-wage growth to the state. ... without real concern for the outcome. Environmentalism becomes a theater in which the privileged act out their narcissism. ... many of the primary apostles of this kind of politics are themselves wealthy high-livers like Hollywood magnates, Silicon Valley billionaires ...”

The best great hope for California's future does not lie with the narcissists of left or right but with the newcomers, largely from abroad. These groups still appreciate the nation of opportunity and aspire to make the California—and American— Dream their own.

“In contrast, the newcomers, who often lack both money and education, continue in the hierarchy-breaking tradition that made California great in the first place. ... In the '90s, for example, the number of Latino-owned businesses already was expanding at four times the rate of Anglo ones, growing from 177,000 to 440,000. Today we see signs of much the same thing, though it often involves immigrants from the Middle East, the former Soviet Union, Mexico or South Korea. [I note a parallel in the Church, with much of the spiritual strength coming in with converts]

“Despite the current mess in Sacramento, this suggests some hope for the future. Perhaps the gubernatorial candidacy of Silicon Valley folks like former eBay CEO Meg Whitman (a Republican), or her former eBay employee Steve Wesley (a Democrat), could bring some degree of competence and common sense to the farce now taking place in Sacramento. Sen. Dianne Feinstein, who's said to be considering the race, would also be preferable to a green zealot like Jerry Brown or empty suits like Los Angeles Mayor Antonio Villaraigosa or San Francisco's Gavin Newsom.

“But if I am looking for hope and inspiration, for California or the country, I would look first and foremost at people like the Cardenas family [see the full article]. They create jobs for people who didn't go to Stanford or whose parents lack a trust fund. They constitute what any place needs to survive: risk takers who are self-confident but rarely selfish. These are people who look at the future, not in the mirror.

I note that all of these are man-made disasters, including in part the current water shortage (our leaders are finally seriously considering water rationing). Surely a natural disaster like the “Big One” would put us over the edge.

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