The dire state of California’s labor market is emblematic of a dysfunctional economy, which explains in part the state’s perennial deficit and bottom-rung bond rating.  If California is interested in a robust, entrepreneurial economy that produces well-paying, stable jobs, two issues should be front and center: government spending and taxes, say Jason Clemens, the director of research at the Pacific Research Institute, and Julie Kaszton, a research fellow at the Pacific Research Institute.

Consider spending first.

• State and local government spending in California represented 22.3 percent of the state’s economy in 2008.
• In other words, state and local government command more than 1 in 5 dollars in the state.
• This ranks California as the 10th largest state and local government in the country.

That could be a reasonable bargain if it corresponded with the 10th best quality of services, but it doesn’t, say Clemens and Kaszton.

Read more: http://www.vote29.com/newmyblog/archives/11370?utm_source=rss&utm_medium=rss&utm_campaign=returning-the-state-to-prosperity-requires-action