I have spent the past few days in Denver and before that in Atlanta. Great cities. The thing that impressed me most was the price of gas. It averaged fifty cents a gallon less than similar gas in California. That’s Seven Dollars on a typical fill up.I started to feel sorry for these poor souls who had to live in those two hell holes. After all they had no police or fire protection, their schools were closed, their streets unpaved, they had no water or electricity, their skies filled with smog. NO wait. Both Georgia and Colorado seem perfectly fine to me. They have great schools, good roads, excellent police and fire departments, the water and electricity seem to run well.
But what about my home state of California?
We have the highest (OK maybe second highest) tax rate in the country, gas taxes are over the moon, and the ninth largest economy on the planet. One would assume that all would be right with the world.
Well with all that money, we can’t seem to repair the roads, build infrastructure, keep the schools up to date, and the like. Our wonderful Governator and the state legislature can’t agree on a budget, and are considering God knows what to all the government to survive fiscally.
Higher income doesn’t mean that a government will do well. It also has to do with the money that is flowing out.
Gas prices are too high in California. Where is the Laufer curve when you need it