The great Joel Kotkin, peerless observer and chronicler of the nation’s urban and municipal woes, takes on the Golden State and wonders: what the hell happened to what was once the nation’s greatest state. The answer will not surprise you:

California has long been a destination for those seeking a better place to live. For most of its history, the state enacted sensible policies that created one of the wealthiest and most innovative economies in human history. California realized the American dream but better, fostering a huge middle class that, for the most part, owned their homes, sent their kids to public schools, and found meaningful work connected to the state’s amazingly diverse, innovative economy.

Recently, though, the dream has been evaporating. Between 2003 and 2007, California state and local government spending grew 31 percent, even as the state’s population grew just 5 percent. The overall tax burden as a percentage of state income, once middling among the states, has risen to the sixth-highest in the nation, says the Tax Foundation. Since 1990, according to an analysis by California Lutheran University, the state’s share of overall U.S. employment has dropped a remarkable 10 percent…

What went so wrong? The answer lies in a change in the nature of progressive politics in California. During the second half of the twentieth century, the state shifted from an older progressivism, which emphasized infrastructure investment and business growth, to a newer version, which views the private sector much the way the Huns viewed a city—as something to be sacked and plundered. The result is two separate California realities: a lucrative one for the wealthy and for government workers, who are largely insulated from economic decline; and a grim one for the private-sector middle and working classes, who are fleeing the state.

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California has long had the reputation of being trend-setter to the nation. The Golden State was practicing Obamanomics back when Barack was still called Barry. And now its ways are catching up to it like a hard partier who looks in the mirror one day and sees the portrait of Dorian Gray staring back at him.

Get ready America: California’s unsustainable path is echoed by the federal government. One will crash before the other, giving us all a preview of things to come.

Part of what is slowly destroying California is its move from a land of plenty to a land of locusts. The state taxes and regulates resident companies to such an extreme extent it has driven many of them, and many tax-paying citizens, to other states. For decades California was a place to migrate to. Now it’s suffering an exodus. The fault lies in a political shift from being a conservative, low- tax state to a statist, high-tax nanny state. Californians used to be the freest people in the United States and the world, and now? Not so much. (more…)