Why can't CA be N.D.?

John Seiler:

Numbers released today show that California’s unemployment rose in August, to 12.4% from 12.3% in July. I guess Cal employers didn’t get the memo from that group of economists that said the Depression ended in June 2009.

We’re third worst in the nation, behind Michigan and Nevada. We have great weather all year round, Silicon Valley, Hollywood and Disneyland. They have snow, desert, and two failing industries, gambling and autos.

The state with the least unemployment was North Dakota, at 3.7%. They also have a lot of snow. So, why is their unemployment 1/3 ours?

According to the ALEC-Laffer survey, “Rich States, Poor States,” N.D. scores high in several key areas: low top marginal corporate income tax rate, low inheritance tax, low minimum wage laws, low workers’ comp costs, and it’s a right-to-work state (meaning you’re not forced to join a union).

By contrast, California, in the areas just mentioned, is good in only the low inheritance tax category.

In sum, N.D. is pro-business and CA is anti-business.

The difference in unemployment is not surprising.

Worse, higher unemployment means fewer people working and paying taxes, and more people on the dole and taking tax money. Hence, California’s budget deficit.

Our leaders in the Legislature and the governor’s office don’t understand that big government and prosperity don’t mix.