With Gov. Gray Davis facing recall, a budget $38 billion in deficit, and a bond rating dropped three notches by Standard & Poor's to near junk-bond status, the lowest of all 50 states, the Golden State is no more. Who killed the goose that laid the golden eggs? Certainly, Davis, who misled voters about the gravity of his budget crisis in 2002, and won re-election by demonizing his GOP rivals, deserves his 20 percent approval rating. But Gray Davis did not kill California. The United States government did. For what killed California as the golden land was massive and unrestricted...