Watching the scene in transportation and economics
Friday, January 11, 2013
California: A national disaster
California is responsible for a ten year slide in output capacity
We are now discovering that the large/small state problem is likely responsible for the 35 year string of multipliers less than one. The chart above shows the 35 year slide in output capacity, starting with the tax revolt in California and ending with the string of municipal bankruptcies. The problem, quite simply, is the value added chain from DC to my hometown of Fresno is very skewed, due to California's failure to ensure a fair Senate vote. The result is 17 Trillion in debt and a national disaster.
The nation has few choices, the most responsible one being to bankrupt California until it agrees to Senate democracy.