California, A Great Place to Live!

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California is a popular target for Republicans. Why? Because California is a good example of successful governing by Democrats. Very successful.

First, let’s discuss the CA economy. In 2018, CA was the 5th largest economy in the world! Up from 10th when a Republican Schwarzenegger ran the state and took it from 8th to 10th. Arnold Schwarzenegger  left office with the largest deficits ever. Ugh, I hate this fact because I’m a huge Arnold fan, but the truth matters. 

California, 5th Largest Economy

Let’s take a look at some of the Republican attacks…

CA has the highest % of people living in poverty.

Agreed. But, that’s ONLY true when you factor in income levels to determine poverty. CA is more expensive than most other states; otherwise, we’re 17th. That’s a very important detail frequently left out of this discussion. Why? Because we are not #1 in poverty and one of the most expensive, we’re 17th but if you factor in cost of living, we’ve clearly got work to do.

Bottom line for me is I believe Democrats will solve this issue better than Republicans. Why? A cornerstone policy of Republicans is to oppose equity balancing policies like social safety nets, unions, and wages. Heck, they don’t even want a Federal minimum wage.

Corporations Leaving CA

What do you base this on? My business is a C Corp, and yes, it costs $850 to incorporate in CA per year compared to $50 in some other states so statistically it’s 83% cheaper to incorporate in other states, but that’s still a top limit of $800/year difference? Also, you have to be incorporated in CA to do business here, so, even if you leave CA, you still have to incorporate in CA. So, if you’re a business and you want to do business in the 5th largest economy in the world, you have to incorporate here. Period.

You generically cited “regulations”. Let’s skip that one for another day. It’s a big subject. In general, I’d rather not let companies dump chemicals in rivers and such. So, I’m good. And, bottom line, on regulations I vote Democrat every time because they belief Global Warming is a threat, support the environment WAY more than Republicans, and push alternative fuel sources.

Perhaps you can educate me. What specifically is more expensive about doing business in CA for corporations?

CA has the highest gas taxes.

I agree our gas taxes are high, but not the highest. Pennsylvania’s gas tax rate is highest at 58.7 cents per gallon, followed by California (55.22 cpg) and Washington (49.4 cpg). But, long term, I support moving away from petroleum-based fuels. So, my position, for the sake of the future, is all states should double or triple their gas taxes. I don’t care. You obviously disagree and great minds can agree to disagree.

CA, High income tax rates.

Fair enough. CA does have high income taxes, and I’d like to see that lowered. However, I very much trust Democrats over Republicans on income taxes. Republicans still believe in trickle down economics. That was an interesting experiment in the 1980s when “buy American” was still something. But, give corporations or rich people more money, they invest it in foreign markets. Not here. The economic spead between the rich, and middle class has never been larger. That’s a problem. Republicans believe in slave-like labor. No minimum wages, let the rich run the world the way they want. Democrats are for closing the rich-middle class economic gap.

But, I think a fairer look is to look at the total tax burden. Our total tax burden is 9.57% which is 10th. Still too high. I still trust Dems.

CA High Homeless Rate

When have we EVER seen more homeless people?

Agreed. We rank 3rd in the nation and we need to work on that. Period. I think Dems are better on the homeless issue. Why? Republicans generally don’t believe in safety nets. They frequently say things like, “you’re homeless because of your poor choices throughout your life.” Which is true, but not helpful.

Wealth Inequality.

Agreed. 100%. Republicans want to increase that inequality, Dems want to close it.

Republicans cite Ayn Rand all the time who built a whole following around the idea that social safety nets are unnecessary and a bad idea. It’s ironic that she collected social security later in life. Many Republicans base their social and economic philosophy on this hypocrite!

Alan Greenspan and most economists understand the benefit of wealth inequality. The benefit of a slave-like labor force. But, even Alan Greenspan these days argues against the extreme wealth inequality trend Republicans are pushing these days.

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