“In some respects GDP is really a measure of consumption, not necessarily production. California has about 12% of the U.S. population but more than 30% of the nation’s welfare recipients. That’s a recipe for disaster — and something that you’d typically find in a Third World sh!t-hole. That’s also why California consistently finds itself facing state deficits on the order of 7%-8% of its budget.”
GDP is production. Yes, consumption drives production but that is the case in every state and every mixed capitalist economy on earth.
Of the California residents on welfare, 75% of them are children due to the calWORKS program which requires the parents, mostly single, to work in order to get the welfare. No other state does this and if you drop the calWORKS program, that 30% share drops waaaay down. California voters are apparently ok with this because they continue to approve it and are ok being taxed to help hungry kids whose parents work. Kind of a decent program in my opinion as gives a strong incentive for parents to work and is compatible with Christian values of hard work and compassion.
Also, California has a budget deficit of $19 billion in a $1.9 trillion GDP state. Not sure how you get the 7-8% number. If California raises state income taxes 0.8%, their deficit is gone. That is the power of a $1.9 trillion economy.
On the other hand, Texas has a $1.2 trillion economy with a $25 billion deficit. So Texas has an economy almost half of California but a deficit that is 2/3 larger than California’s. They have this deficit while also having the honor of the most children in the country that have no health insurance. They need better management of their budget.
Also, California has a budget deficit of $19 billion in a $1.9 trillion GDP state. Not sure how you get the 7-8% number. If California raises state income taxes 0.8%, their deficit is gone. That is the power of a $1.9 trillion economy.
The 7%-8% is based on California state budget (about $130B, I think), not its GDP. And your point about raising income taxes 0.8% to eliminate their budget deficit is exactly how that place ended up where it is right now. California is already among the worst states in the U.S. for income taxes, and every time those rates are raised you find more and more productive citizens moving elsewhere. Haven't you figured this out yet?
On the other hand, Texas has a $1.2 trillion economy with a $25 billion deficit. So Texas has an economy almost half of California but a deficit that is 2/3 larger than California’s. They have this deficit while also having the honor of the most children in the country that have no health insurance. They need better management of their budget.
On a per-capita basis, combined Texas state taxes are a little more than half of what you have in California. It's one reason why Texas has been an high-employment machine in recent decades compared to California. One positive aspect of their low state spending is that they haven't attracted as many illegal aliens as California even though they have a much longer border with Mexico. One state falls all over itself to welcome illegal aliens and get their families on public assistance, while the other does not.