California is one of the most unique places in the world. Between its unbelievable natural resources and multitude of powerful tech companies, there are few places like California. However, there is a threat to California’s future.

Government policies are on track to make California in its current state unsustainable.

Around the end of the 1960’s, the population of California was around 20 million. Since the gold rush, it had grown to be a powerful economic power, allowing California to construct a huge State Water project and education system.

Their future seemed secure, up until now.

One issue is California’s lack of infrastructure. The water project was designed for a population of about 25 million, but as of today it has reached 40 million people. And in the last 50 years, there has been little built. As far as their roads go, they have some of the worst in the country.

According to a 2017 report on California infrastructure, they are lacking in excess of $75 billion dollars worth of spending across water, schools and road needs. Others have put their infrastructure costs up around $700 billion.

Also an issue is government debt. As of 2015, California governments owed $1.3 trillion, which has also been disputed. Some believed the number is around $2 trillion.

A third problem is California’s taxes and regulations. Considering California’s legal and regulatory system, it is likely the most regulated state in the country. It is also one of the highest taxed states in the country as well, with its income rate 4% higher than the next closest.

It also only takes making $52,000 to qualify for the rate of 9.3%. However, even with this low threshold, less than 150,000 people pay for half its income tax.

The biggest problem leads back to the government. Despite their lack of budget, they continue to spend 0ver $400 billion a year, moving further and further left.

Their politicians are considerably left of the old, and continue to support significantly expanded health benefits, costing in excess of $400 billion a year. There has been little concern for future debt.

Instead, they are continuing support of higher taxes, which will be service taxes, sales, income, property… the list goes on and on. At least cannabis taxes should bring in new revenue, as officers at LAX will not detain passengers for traveling with marijuana.

If anything, there is a lesson to learn from this story. But for now, California is continuing on its road of unsustainability.


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