Why are Kansas and Texas doing so badly, and California so well?
For one thing, taxes enable states to invest their people. The University of California is the best system of public higher education in America. Add in the state's network of community colleges, state colleges, research institutions, and you have an unparalleled source of research, and powerful engine of upward mobility.
Kansas and Texas haven't been investing nearly to the same extent.
California also provides services to a diverse population, including a large percentage of immigrants. Donald Trump to the contrary, such diversity is a huge plus. Both Hollywood and Silicon Valley have thrived on the ideas and energies of new immigrants.
Meanwhile, California's regulations protect the public health and the state's natural beauty, which also draws people to the state -- including talented people who could settle anywhere.
Wages are high in California because the economy is growing so fast employers have to pay more for workers. That's not a bad thing. After all, the goal isn't just growth. It's a high standard of living.
In fairness, Texas's problems are also linked to the oil bust. But that's really no excuse because Texas has failed to diversify its economy. Here again, it hasn't made adequate investments.
California is far from perfect. A housing shortage has driven rents and home prices into the stratosphere. Roads are clogged. Its public schools used to be the best in the nation but are now among the worst -- largely because of a proposition approved by voters in 1978 that's strangled local school financing. Much more needs to be done.
But overall, the contrast is clear. Economic success depends on tax revenues that go into public investments, and regulations that protect the environment and public health. And true economic success results in high wages.
I'm not sure how Trumpland and California will coexist in coming years. I'm already hearing murmurs of secession by Golden Staters, and of federal intrusions by the incipient Trump administration.
But so far, California gives lie to the conservative dictum that low taxes, few regulations, and low wages are the keys economic success. Trumpland should take note.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
