The "Progressive" Utopia

And they called it paradise
The place to be
They watched the hazy sun,
sinking in the sea

From the Great "Progressive" state of California......

The budget crisis is a case in point. Frustrated with their inability to raise taxes, Democrats got creative: They decided they could declare outright hikes in taxes to be "fee increases." This would let them pass a massive $9.3 billion in tax hikes without consulting Republicans in the legislature, in direct violation of state law.

We had high hopes that Republican Gov. Arnold Schwarzenegger would put a stop to this madness after he won the state's highest office in a recall vote against Democrat Gray Davis in 2003.

But spending has actually grown faster under Schwarzenegger. Since 2003, total spending is up $41 billion, or 40%, to $144.8 billion. The governator's compromise plan to eliminate the massive deficit is only marginally better than the Democrats' — he would cut the deficit through a 50-50 combo of tax hikes and spending cuts.

Call it Democrat-lite. More disappointing, Schwarzenegger has supported sweeping new greenhouse gas rules that will add billions of dollars in costs and force even more companies to flee the state.

California is already the most costly place in America to do business, according to the Milken Institute's business cost index. Its business costs in 2006 were 23% higher than the average for the rest of the states, and well above those of its neighboring states.

Worse, energy costs are already 35% higher than the national average. With California's costly new CO2 mandates about to kick in, the economy could well grind to a halt.

Such business mainstays as Intel, Exxel Outdoors, Toyota and Tesla have already left California. Intel is a particularly alarming example: The world leader in chip technology started in Silicon Valley but no longer makes anything in California.

Since 2001, according to the California Manufacturers and Technology Association, the state has lost 440,000 high-wage jobs. Today, the state's jobless rate of 8.4% is third-highest in the nation.

Even Hollywood feels the pinch. In 2003, 66% of Hollywood's feature films were made in-state; today, it's down to 31%. Increasingly, Hollywood is a state of mind — not a place to do business.

Things are so bad that, just last week, 25 business groups wrote an open letter to the state's legislature begging it to think about the role businesses play in the economy.

More.....

What's so "progressive" about fleeing citizens?

HT Bizzyblog