Glen L.

California Won't Even Accept Its Own IOUs

Of course it's government's fault, no matter how tired some people are of hearing it. Democracy is to blame, too, because it always devolves into gaming the system by special interest groups, each vying for a bigger slice of the pie than they put in via taxes. This is just human nature, and nothing can be done about human nature. The communists and socialists try to deny human nature by forcing one-size-fits-all social programs down our throats, but you can judge for yourself just how successful that's been over the years.

What can be done is to limit the size and power of government, thereby limiting the power of the special interests. The silver lining in the fiscal problems of NY, CA, the USA, and all the rest, is that this is happening now, literally by default. If enough people realize that relying on government to self-correct by the democratic process (and more taxes) is simply impossible, maybe there will be real, radical reform in our country. But I'm not holding my breath.

What Went Wrong with California, New York, and New Jersey?

a palmer jr: How much illegal immigration would there be if those states did not have the most generous (and wasteful) welfare systems in the country? Once again, the real culprit is government. Furthermore, the voters of those states keep electing politicians who coddle illegal immigrants. So much for democracy as the answer to our problems.

What Went Wrong with California, New York, and New Jersey?

VennDetta: "China has state-controlled "everything" and 40% tax rates, their growth rates are great."

Not true, there is far more economic freedom in China now than in the U.S. The Communists finally gave up after creating one of the poorest societies in the world over a period of 5 decades. It's far easier to start a business in Beijing than in New York or Los Angeles.

john s. gordon: Delaware also has drawn in thousands of corporations that DO have operations in the state due to low corporate taxes and other benefits. Furthermore, many other states have draconian penalties for businesses that get caught setting up corporate shells in Delaware.

It's incredible to me that anyone would still argue the point. Government is everywhere and always a parasite on the economy. Governments make nothing but trouble and are the only real impediment to worldwide prosperity. Many in the U.S. continue to believe that government is necessary to protect our freedoms, but what they do is the exact opposite: destruction of freedom, economic and otherwise.