Saturday, February 16, 2013

Red States Versus Blue States

A battle has raged for more than 30 years between Red Free Market States and Blue Socialist states.   And, for years companies and jobs have been leaving California, the Mid West and the Northeast and going to the Southwest, the South and other countries.    These companies are not just chasing sunshine, they are seeking business friendly states (and now other countries) with lower corporate income taxes and fewer job killing regulations.  

The best case in point is the California versus Texas battle.   California is the best example of a failed Socialist state, or country.   20 million people out of 35 million in California get some kind of government check; payroll, Social Security, Medicare, Medicaid, Welfare, Food Stamps etc, so California is way beyond the tipping point.   As such, California actually has the highest poverty rate in the nation.   California actually runs radio ads encouraging people to go on Food Stamps.  They call their program California Fresh.   Further, California government is controlled by the public employee unions, always pushing for higher and higher compensation and outrageous benefits and pensions that have bankrupted the state.  

Even though California has the highest taxes in the nation, California has to borrow billions of dollars every year to fund operating expenses; not just long term projects.   As a result, California has more than $400 Billion of debt on the books requiring interest payments each year, which is a vicious cycle.

In the last 30 years, there has been a complete shift in company demographics between California and Texas.   30 years ago, California had about 250 companies headquartered in the state with 5,000 employees, or more and Texas had 80.   Today, California has about 106 and Texas has 220 and growing.   Further, of the 106 major companies left in California, nearly all have moved revenue producing Operations out of California to other states and or countries.   These are facts not Socialist fiction.   While there may be a hand full of high tech new start up's every year in California, if they are successful, manufacturing goes someplace else to avoid California's high taxes and crazy regulations.

If Socialist President Obama is allowed to "transform" our country into a Socialist nation, the California story will become the US story.   We can see the end of this story just by looking at our states.   The Red States are generally in better shape than the Blue States.   The Red States have been growing for years, while the Blue States all face bankruptcy and have been losing Makers.  Companies and people vote with their feet and jobs follow.   Why is it that Socialists refuse to see the numbers.   Cards talk and number don't lie; but Socialist live in a fantasy land in denial of the facts.  Higher taxes and more regulations are job killers.   Just look to the Blue States for evidence. 

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