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Opinion: California is more bust than boom


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By Ted Gaines

Ebola, landslide elections, immigration and Ferguson have dominated the holiday season news, and those massive stories have obscured a host of other events that augur poorly for the future of California unless we act to change the way we govern this state. It’s the problems related in these stories that inspired me to write “CA-Boom! California’s Amazing Past, Troubled Present and Unlimited Future”.

These stories lost among the mega-events are not new – they are continuations of troubling California trends – and I tackle them all in my book and address how they can make or break our state moving forward. Here’s a sampling:

Ted Gaines

Ted Gaines

Social Security Disability Insurance (SSDI) will become insolvent in 2016 unless the federal government slashes benefits, raises taxes, changes eligibility, or takes all three of those steps. In my book I discuss the staggering growth of disability payments and how expanding entitlements affect the workforce. But most important to our long-term future, I ask the question: If jobs are getting physically less demanding, and medical care is getting better, then why are fewer and fewer people able to work? What does that mean for California in the decades to come? If you’ve ever had a sense of unease about SSDI, check out “CA-Boom!” to see some numbers that will validate every fear you’ve ever had. Here’s a hint – it’s worse than you think.

The free-market Cato Institute recently issued a “fiscal report card” of all 50 governors. Gov. Jerry Brown was dead last and it wasn’t close. Despite his claims of austerity and a beneficial action here and there, Brown’s spending increases over the past three years are more than double the national average. That’s unsustainable. And because spending equals future taxes, Brown’s expansion will put pressure on government to wring more out of every taxpayer. “CA-Boom!” looks at our tax burden and shows why increasing taxes, at least in this state, could be a disaster.

Proposition 47, recently passed by the California voters, will dump thousands of criminals onto the streets, supposedly non-violent and low-risk offenders who shouldn’t be in prison at all. I take a look at some data and conclude one thing: It’s hard to end up in prison. In 2011 there were nearly 400,000 felony arrests in California. How many of those people saw the inside of a prison cell? My book tells you, and I bet the number is much, much smaller than you think.

I also examine innovation and its role in the California economy; our crumbling infrastructure; and why our schools cost so much and return so little. There are charts in the book about education spending and educational achievement that will make you rethink every call for more money in our schools. I look at how our energy policy could supercharge our economy but instead drags it down and other issues critical to the health of the Golden State.

It’s obvious that California has enough problems for 10 states, but what defines us is hope, hope that we can recapture our glorious economic past. Everything in the book is discussed in the context of our state’s rich Gold Rush history. In it I ask: “What would happen if John Marshall dipped his hand into the American River today and pulled out that same brilliant sparkle? Nothing. No Gold Rush. No mass migration. No inventions. No progress. Nothing. California’s current government would kill off a new Gold Rush before it started.”

We’ve fallen a long way from the freewheeling, risk-taking spirit that fueled the most amazing economic spectacle the world has ever seen. But that is the government’s fault, not the people’s. However, with the right policies, we can unlock the potential in today’s California and turn the state back into the Gold Rush dream that pulled people from around the world to our shores.

Sen. Ted Gaines represents the 1st Senate District, which includes all or parts of Alpine, El Dorado, Lassen, Modoc, Nevada, Placer, Plumas, Sacramento, Shasta, Sierra and Siskiyou counties. 

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Comments (16)
  1. Gaspen Aspen says - Posted: December 8, 2014

    Gov. Moonbutt is a senile old goat constantly raising taxes and inviting ILLEGALS. He is a disaster to the state and should be put out to pasture. Can’t wait for his .35-.75 new gas tax. Sure you can maybe fix a state…..just tax the crap out of the people. Libs must love it.

  2. Not Born on the Bayou says - Posted: December 8, 2014

    The “right policies” that aren’t mentioned here are no doubt giving even more tax breaks to the well off for moving jobs offshore and collecting capital gains, cutting pay to the lower income groups, and playing quid pro quo with contributions to their favorite politicians.

    Sorry, don’t buy this. Income spread and wealth was more evenly and fairly on par in the past eras of higher taxes on the wealthy/reasonable taxes on the less well off. Trickle down is a farce. A large element of Henny Pennyism here, with vague complaints unaccompanied by any reasonable suggestions for solutions.

    Brown is a hard nosed realist who balances cost cutting with social needs. His main weak spot is the bullet train obsession, but overall things are much better than the drift under the prior governator.

    Maybe innovation is lacking in the conservative areas within Mr. Gaines’ district, but I wouldn’t say that about the focus areas of California culture, population, and business, which are in the Bay Area and LA. Sure there are problems as always, but we’re clearly on a better track now.

    If this is supposed to be an ad for a book, I don’t think I’m buying.

  3. legal beagle says - Posted: December 8, 2014

    Ted, if you think there is hope I would characterize you as a “Cockeyed Optimist” of the highest order.
    You left off the incredible negative effects of illegal immigration and importation of H1-B visas
    holders that take jobs from American STEM graduates.
    Our schools are political indoctrination centers not learning center as they became hyperpolitized and uber bureaucratic.
    And let’s not forget how our farmers are being decimated by lack of irrigation water.
    I wish I could join Pollyanna but there is too much realist in me.

  4. Perry R. Obray says - Posted: December 8, 2014

    “Social Security Disability Insurance (SSDI) will become insolvent in 2016 unless the federal government slashes benefits, raises taxes, changes eligibility, or takes all three of those steps.”
    If the California Department of Rehabilitation uses it’s legal authority to help people on disability with realistic goals, and the California Community College system likewise, instead of focusing to many resources to illegal activity,….

    “It’s obvious that California has enough problems for 10 states, but what defines us is hope, hope that we can recapture our glorious economic past.” With California rated as the top 10 biggest economies on the planet, looks like a current powerhouse, not a has been.

    “No mass migration” Apparently implying people have no reason to mass migrate to California, and no mass migration is not good. California is the most populated state in the union, and probably feeds people in every state of the union. Does California really need more people?

    Stockton lost out on a huge Tesla battery factory. Maybe manufacturing shouldn’t have been located in a food producing region. BUT, look at the crime rate of Stockton.

    “why our schools cost so much and return so little.” Systemic hacking of unsuspecting students in an educational setting in a California public school has to effect the overall equation.

    I haven’t seen any numbers on how 64 bit computing has effected the employment numbers. Hard for me to believe when these 64 bit operating systems became mainstream around 2005, they didn’t affect the employment statistics.

    Also, California apparently is a trend setter for this country. Ted might be right about the uncertainty of the future. Some people seem to make a case that this country started listing and or sunk around 1968-1973. It has been a humbling journey.

  5. Lisa says - Posted: December 8, 2014

    Gaspen, you forgot a teeny tiny part of the taxes…We voted on them and passed them. Not a big fan of the voting process?

  6. Lisa says - Posted: December 8, 2014

    Gaspen, you forgot a teeny tiny part of the taxes…We voted on them and passed them.

  7. Lisa says - Posted: December 8, 2014

    The minute someone uses the Cato Institute as their measure, it is time to chuckle and pretty much disregard everything that comes after. Oh horrors, they rated Jerry Brown an “F” and at the same time rated Kansas’ Brownback an “A”. In the past few years, Brown has taken our deficit and this year we have a surplus. We have one of the strongest job growth markets in the country. So if that is an “F”, Brownback must have done some incredible stuff in Kansas right? Sure did. He has taken a state that had a $700 million dollar reserve to the point of bankruptcy in the middle of next year. Kansas’ debt rating has been downgraded by Moody and the education system is in deep trouble. Does Brownback see this is an issue…Nope, he wants to “hit the accelerator” to add more. Please give me more of an “F” player. I specially love Gaines quote, “I take a look at some data and conclude one thing: It’s hard to end up in prison.”…. sure if you are White and upper class. Minorities who are arrested more often and charged more FOR THE SAME CRIME may feel differently. Especially when you look at the fact that they are convicted more for the same crime and given longer sentences than Whites who are convicted for the same crimes. I know you want to sell books (and this was a really really long ad), but even you can’t be that clueless.

  8. Kevin Murphy says - Posted: December 8, 2014

    The Cato Institute is a wholly owned subsidiary of Koch Industries. Teabag Ted is just a willfully subservient employee.

  9. Justice says - Posted: December 8, 2014

    SSI is imploding nationally and will fail as will adding massive numbers of welfare entitlements that are growing at a rate that can’t be sustained and will not be able to be absorbed by adding millions here illegally by illegal orders. This whole border invasion is directly a result of Senile Jerry and his buddy Insane Hussein ignoring laws and causing a mass stampede at the border from many countries and they are encouraging it and want others to pay for it and both are also busy releasing all of the criminals they can to be paid by taxpayers to steal, use drugs, collect and defraud welfare and SSI, and go on crime sprees in a neighborhood near you. I hope Old Hook-Beak starts taking Pesos because Liberalism fails when the money runs out and printing it in DC for massive debt doesn’t mean China will keep buying it and owning it because their own country will implode eventually.

  10. nature bats last says - Posted: December 8, 2014

    All you ignorant, paranoid, whining tea baggers can exercise your rights as Americans and move to some other state that fits your delusions. Of course that state dosent exist, but go ahead and move anyway…
    see ya, wouldnt wanna be ya….

  11. Gaspen Aspen says - Posted: December 8, 2014

    Lisa: YOU voted on more taxes…not I.

  12. Gaspen Aspen says - Posted: December 8, 2014

    Nature bats: You can drown in the more taxes yet to be put on you. Talk about delusional. Cali-lib-Mexico is the poster state of idiocy and taxes. You eager to pay more taxes people will soon find out Moonbutt like the punk in DC has not YOUR interest in mind whatsoever!!!
    You get what YOU vote for. Also, enjoy all the new thugs you voted to get out early with prop 47. You people are really amazing!!

  13. nature bats last says - Posted: December 8, 2014

    Bla bla bla, choke, bla, bla rant, bla bla GA you are worse than a buzzing fly, bla, bla, bla…

  14. Gaspen Aspen says - Posted: December 8, 2014

    Nature: I realize the truth and reality are not your strong points so simply enjoy the fruits of your voting. Have a nice life….and keep drinking that Kool-Aid. Have a nice life, you are boring me.

  15. nature bats last says - Posted: December 8, 2014

    YAWN…….

  16. DougM says - Posted: December 11, 2014

    There were a few things that, some time ago now, made the Golden State golden, other than sun and brown grass. The gold rush had to pass, but CA had remarkable resourcefulness in a few other areas. Hollywood is still going pretty strong. High tech, which brought me here, still pays its way, but at, I believe, a far lower level and different, far less open minded level than in years past. CA was an energy center. But one oil spill and that resource was crippled along with all debate on how we might bring it back more safely. Hydro dams were built, and are now being destroyed. A huge arid basin was transformed into the nation’s breadbasket via a canal system which is now choked off and returning the land to desert status, and countless bankrupt farmers, only for the benefit of a minnow. The general demographic used to be dominated by highly educated middle class workers, who are now being outnumbered by skill-less, illegal immigrants. Lumber was once an industry. Now all trees are protected, so they can eventually burn in the next fire. Fishing, crabbing, oyster farming? Not PC these days. The list is roughly infinite.

    Sometimes new problems come along that defy one’s imagination to figure out a solution. Other times, one need only look in the rear-view mirror, for a story of incredible stupidity and destruction, and fortunately also, a blueprint for some common sense solutions.