California, which once lured Americans from near and far, is now driving out millions of the most productive residents – including high percentages of the most affluent.Is it possible that California is going to end up like the rust belt but with better weather and better Mexican food?
"When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state," says a report called "Rich States, Poor States" by economists Arthur Laffer and Stephen Moore. "Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole."
CMStrapz and I were at the San Diego Convention center when Arnold launched his campaign after the Gray Davis recall (my personal favorites were Tom McClintock, or that porn star, or Gary Coleman, but mostly Tom McClintock). Arnold really is impressive as a political figure, but he has had a tough time trying to cut government spending. Partly because of the political climate out here, but also because he hasn't really been pounding away with cutting costs as part of his agenda.
The whole article is here.