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The California 'Mordida'

squiddy Wrote: Mar 07, 2013 2:06 PM
Those big businesses that help keep CA afloat aren't located in sight of the Sierras; they're clustered around SF and L.A., with massive congestion, crime, and a high cost-of-living for its employees, which means higher wages, and of course, taxes and regulation. The cost of living and the expense of government, both in terms of taxation and regulation, directly impact the bottom line of a business. A company headquartered in San Francisco could vastly reduce their costs by moving elsewhere, making them more competitive and more profitable. The natural beauty of CA is great - the state benefits from tourism like few others. But if those tourists knew how likely they are to be victimized while there, they might think twice...

California now works on the principle of the mordida, or "bite." Its government assumes that it can take something extra from residents for the privilege of living in their special state.

Gov. Jerry Brown made that assumption explicit in his latest back-and-forth with Texas Gov. Rick Perry, who keeps luring Californians to lower-tax, higher-employment Texas. Recently, Brown said of Texas, "Who would want to spend summers there in 110-degree heat inside some kind of fossil fuel air conditioner?"

Translated, Brown's retort meant that despite California's sluggish economy, high taxes and poor services, it's still worth staying there to enjoy its beautiful...