Tuesday, October 22, 2013

The Sacramento is a Black Hole Theory

My theory, thank you.  The theory in its basics, says the government clash between Sacramento and DC costs California about 2% of potential GDP growth over the years, compared to the average nation in Europe.  This is roughly a .2% loss over the whole USA.  Texas and New York have the similar losses, bring the total to nearly .4%. Over the last thirty year all of these losses have been taken from DC's fiat account. But they still exist.  These losses are facilities and institutions that requiring ongoing subsidies.

Our external trading partners have gotten better efficiency from government, relative to their own economies.  Their G followed the real economy, for better or worse.  So the USA has been suffering a .4-.5% penalty per year in external trade.

Its not a serious problem, it simply means finding a way for large states to have their fair Senate vote.  That would be enough to reverse the losses, easily recovering from the thirty year pain.  It is something we have done many times, done right it works, the constitution allows a lot of leeway, it is the American tradition.  But, the elites and their institutions have this built in shock from the Civil War.  The after effects distort the original intent. We still have a racist Democratic Party.

The solution lies in what Californians decide, we are the largest economy, the most peripheral, and when we want, we can dominate.  But We also take the largest brunt of the losses, being the largest and with the largest G at risk. There is not constitutional provision that prohibits the five sub states of California from reporting to a Sacramento legislature.  Democracy is rarely outlawed in the constitution. Citizens of California simply need declare themselves to have 10 Senators, it is then up to the Senate Hoovers to officially deny fair voting.

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