Time for another look at how Texas’ Red State model stacks up against California’s Blue State model, with a roundup of relevant news from the past few weeks.
Here’s a roundup of California’s dysfunction. Lots of tasty tidbits, including this gem: “California has both the highest state deficit in the country and the highest personal income tax.”
George Will on California’s high speed rail insanity. “At one point, an estimate of 44 million riders a year—subsequently revised downward, substantially—assumed gasoline costing $40 a gallon.”
While commuter rail isn’t cost effective in California, the Long Beach-to-Los Anegles Blue Line is good for one thing: killing people. (Hat Tip: Dwight.)
If I really, really wanted to make modern feminists look bad and out-of-touch, how could I do it? Well, I could create a fictional character that a New York City writer call Ann Romney a “traitor” for daring to raise children rather than getting a job. But suppose even that weren’t enough. Suppose that I really, really wanted to make people hate this character. How far would could I push it? How about I make her a narcassitic drug-addict! (The Frisky nails it as Linkbait.)
Speaking of loathsome liberals, how about this Internet Tough Guy of the Year berating a poor Chick-fil-A drive through attendant over gay marriage?
That’s some industrial strength stupidity right there, Mr. Adam Smith: videotaping yourself being King of the Douchebags and then putting it up on YouTube yourself. What possible go wrong? Beside, you know, your company firing you for being King Douchebag.
In order to divert attention away from the economic, moral, and political bankruptcy of Europe’s cradle-to-grave welfare state, some liberals, relying on figures from the Out of Our Ass Institute of Statistics, are tying to claim that Greece’s excessive spending comes from a “bloated defense budget.”
Try again. Greece only spends 5.5% of it’s budget on defense:
Either Europe (and the United States) must reform their runaway, bloated welfare states, or their welfare states will bankrupt their nations.
Texas has a market that works just fine for electricity when government lets it: “California pretended to have a deregulated electricity market, but it was really a poorly designed, government-controlled system that eventually collapsed under its own weight. Texas’ economy is outperforming the rest of the country because we put fewer burdens on markets. This is why Texas has the most competitive and successful electricity market in the United States, if not the world. If we let it work, the world-class Texas electricity market will power Texas’ future.”
You know, if I were looking to save money, eliminating the state’s open meeting law is about the last thing I would cut. California at every level government needs more transparency, not less. (That probably true for the other 56 49 states as well.)
Finally, I want to note that Dwight has created a tag to track all mentions of the No Longer Golden State on his blog, so you can read his roundups on police incompetence, municipal corruption, and bankrupt locales such as Vernon, Bell, San Bernardino, Cudahy, Maywood, and Zalgo.
Just got off a Texas Public Policy Foundation conference call with Chuck DeVore and Arlene Wohlgemuth on the effects of the Supreme Court ObamaCare decision. Just in case you hadn’t read anything on the Internet today, that ruling was 5-4 affirming ObamaCare as constitutional, majority opinion written by Chief Justice Roberts, not on Commerce Clause grounds, but on congress’ ability to tax:
The Affordable Care Act is constitutional in part and unconstitutional in part. The individual mandate cannot be upheld as an exercise of Congress’s power under the Commerce Clause. That Clause authorizes Congress to regulate interstate commerce, not to order individuals to engage in it. In this case, however, it is reasonable to construe what Congress has done as increasing taxes on those who have a certain amount of income, but choose to go without health insurance. Such legislation is within Congress’s power to tax.
Here some no-doubt random bits of information I gleaned from the conference call:
Of all the possible scenarios experts looked at in a possible ObamaCare ruling, this wasn’t one of them.
All the cost drivers and massive increase in bureaucracy is still there.
Texas was already looking at a $5 billion Medicaid shortfall for the next biennium; ObamaCare will likely make that a $15 shortfall.
No one knows if Texas will undertake Medicaid expansion or not.
ObamaCare was a consequence of Republican losses in 2006 and 2008, and a cause of Republican victories in 2010.
As a tax, ObamaCare can be repealed with 51 Senate votes (no filibuster).
Roberts’ decision “built a fence” around the Commerce Clause, possibly preventing further expansion of federal powers under that guise. (This has lead to some observers to suggest that Roberts is playing the “long game” of constraining the growth of the federal government.)
The court did invalidate (7-2) Medicare/Medicaid penalties for non-compliance, in that states cannot be “dragooned” into post-facto changes with the threat of withdrawn funding for established programs. DeVore: “This is a victory for the 10th Amendment and Federalism.”
That change might offer challenges to a whole lot of legislation.
The politicized way in which the Obama Administration has granted waivers to the politically connected might also offer avenues for equal protection challenges.
This TPPF policycast also covers some of the same topics discussed on the conference call.
So: That’s my brief recap of the conference call. I’m still digesting the ruling itself, and reactions to the ruling. I might be doing that for some time…
Today brings news that Austin just surpassed San Francisco in population to become the 13th largest city in the country. In fact, Texas had six of the top seven fastest growing cities over the past 14 months: Round Rock, Austin, Plano, McKinney, Frisco, and Denton placed 2-7, topped only by a post-Katrina New Orleans. And at only 7,000-odd residents behind Jacksonville and Indianapolis, expect Austin to be the 11th largest city in the country the next time this list is updated.
And that news gives me a great excuse to to another roundup of Texas vs. California!
“Texas has been doing very well. If you draw a triangle whose points are Houston, Dallas and San Antonio, enclosing Austin, you’ve just drawn a map of the economic and jobs engine of North America.”
“California may be dreaming, but Texas is working. According to the U.S. Census Bureau, from 2000 to 2010, California lost a net of 519,600 jobs while Texas gained 1,093,600 jobs.” Lots of additional statistics here make the case for the measurable superiority of Texas’ Red State model over California’s Blue State model.
Lest you think this is some kind of fluke, or that taxes are not the determining factor in this “escape from NY and California,” it isn’t just Texas that is gaining all these fleeing residents. The U.S. Census reported that all of the top 15 states for population growth during the past decade are no tax or low tax states like Nevada, Florida, Arizona, Utah, Georgia, North Carolina and South Carolina. It seems Americans are smarter than politicians give them credit for- they are voting with their feet for lower taxes, pro business attitude, and more economic freedom.
Because no state in the union has a better economy, let’s look “up close and personal” at the Texas miracle. Texas practices what I proudly call “Wild West Cowboy Capitalism.” And it works!
Texas has zero state income tax, zero capital gains taxes, and zero death taxes. It is a “right to work” state where employees may choose to join a union, but are never forced to. It is pro business and anti-lawyer (discouraging class action lawsuits and the first state to pass a “Loser Pays” law). Texas is also tight-fisted with welfare and entitlement benefits- unlike New York and California. The result of this limited government attitude is people with high incomes, assets, and ambition are moving into Texas, while those who lack work ethic, and feel entitled to handouts are moving out. Good riddance.
But the most important attribute of Texas is that its constitution limits the time that politicians can meet. The Texas Legislature is limited to meeting only 4 months every other year. That pretty much explains everything. Texas and my state of Nevada have no state income taxes and the fastest growing populations in America…not in spite of, but because the politicians aren’t allowed to sit in their seats all year long thinking of new ways to re-distribute income, impede business, and destroy jobs.
California’s pension crisis continues to fester, and Democrats appear to be unwilling to grapple with the issue. (And here’s more on the pension bomb from Walter Russell Mead.)
Gary Farmer, head of the Austin Economic Development Corp. tells California audience exactly how Austin lures business from their state. “The key reason for the state’s success in luring business from other locations is a better political and regulatory climate, he added. Texas has a corporate tax of 1 percent on adjusted gross receipts, while California’s is 8.84 percent of income. Texas has no personal income tax while California’s is 9.3 percent.”
Feeling less suicidal than usual, Greek voters have opted for the conservative (for Greece) New Democracy party in parliamentary elections, beating out the radical-left Syriza, which insisted Europe keep shoveling money into the black hole that is the Greek budget, but rejected even the fake austerity the Eurocrats demanded. New Democracy leader Antonis Samaras has his work cut out for him, convincing the Eurocrats that yes, this time, they really are implementing austerity. This time for sure!
Look for this to help forestall the inevitable “grexit” for, oh, maybe three months. Which is when I bet Greece will find out it can’t pay it’s bills again after the latest infusion of cash, the money Europe kicked in will have strangely disappeared without seeming to have been spent on any fundamental government services, and insiders will have managed to transfer another few months of funds into their out-of-country banks accounts in advance of the next crisis…
So Greeks head off to the polls this weekend to (theoretically) choose whether to muddle along with a “right” (for Greece) government that will actually attempt to carry out something vaguely resembling austerity, or for Alexis Tsipras’ far-left Syriza party, who intends to re-enact Clevon Little’s scene from Blazing Saddles: “Drop the austerity demands, or I’ll drop out of the Euro and refuse to let Germany bail us out anymore!” “Do what he says, do what he says, that Greek’s crazy!” It’s anybody’s guess whether Greece will opt to keep the farce going for another few months, or finally set the whole house of cards tumbling down.
My guess is that there are still enough insiders who can benefits from dumping PIIGS bonds onto various sets of European taxpayers, so I expect that, one way or another, the Eurocrats will find a way to keep the charade up for another two or three months.
In light of that, here’s a roundup of Euro debt news:
How the Euro will end: “Greece will simply run out of cash. Then Spain’s real-estate bubble will ruin an economy that really matters.”
Still not completely depressed about Europe’s prospects for escaping the trap created by their bankrupt cradle-to-grave welfare states? Well then, here’s some Mark Steyn to cruelly stomp on those last flickering embers of hope.
