The California (Banana) Republic

A couple of years ago, one of my dear wife's relatives, a highly intelligent individual (as they tend to be), a Maine-iac, asked me how things were in California. I told him exactly what I thought: "California is a banana republic". He scoffed. A "banana republic", he said, is like, what? Guatemala? Honduras? Not California. "Mark my words", I told him. "The state government is a joke, and it's run by jokers".

I'm not going to bother remarking on the recent budget battle, except to note that a number of states were able to run surpluses and establish rainy day funds while the economy was booming and revenues were gushing. California couldn't get out of deficit if the economy was growing 10% per year. We don't have economic problems so much as we have political problems.

But no, I'm not writing this because of the old news that the state can't pass a budget on time, or balance one. I'm writing this because of the news today that the unemployment rate in California has eclipsed 10%, for the first time since 1983. A year ago, the rate was in the low sixes. California's unemployment rate is probably a good 2% higher than the national average. That is just inexcusable.

I can understand why Michigan, for example, battles high unemployment. Or, for that matter, why several other states whose economies are heavily dependent on cyclical industries might suffer. But California is so big, and its economy so diverse (ugghh!), that there is just no good reason why California should suffer more than most states. No good reason, but there is a reason. It's been turned into a banana republic. Warning to the rest of the country - President Mugabe wants to do for the rest of you what's been done to the (formerly) Golden State.